Zacks Investment Research downgraded shares of Prosperity Bancshares (NYSE:PB) from a buy rating to a hold rating in a research note issued to investors on Tuesday, February 13th.
According to Zacks, “Shares of Prosperity Bancshares have outperformed the industry in the past six months. The company surpassed the Zacks Consensus Estimate for earnings in two of the trailing four quarters. The bank’s fourth-quarter 2017 results benefited from a rise in net interest income partly offset by higher expenses and fall in non-interest income. Growth in loan and deposit balances and stable expense levels along with steady improvement in asset quality will support profitability. Also, the company is expected to benefit from lower tax rates. However, pressure on revenues and net interest margin (despite improving rate scenario) remain major concerns for the company. Further, high exposure to risky real estate loans makes us apprehensive.”
PB has been the subject of several other reports. DA Davidson upped their target price on Prosperity Bancshares to $80.00 and gave the stock a neutral rating in a research note on Thursday, January 25th. ValuEngine raised Prosperity Bancshares from a hold rating to a buy rating in a research note on Thursday, November 30th. SunTrust Banks reissued a buy rating and issued a $85.00 price objective on shares of Prosperity Bancshares in a research note on Thursday, January 25th. Piper Jaffray Companies reaffirmed a hold rating and issued a $73.00 target price on shares of Prosperity Bancshares in a research note on Tuesday, January 9th. Finally, Barclays increased their price target on Prosperity Bancshares from $72.00 to $79.00 and gave the stock an overweight rating in a report on Tuesday, January 2nd. Four investment analysts have rated the stock with a sell rating, nine have given a hold rating and two have issued a buy rating to the company. The stock has an average rating of Hold and a consensus target price of $74.45.
Prosperity Bancshares (NYSE:PB) last issued its quarterly earnings results on Wednesday, January 24th. The bank reported $0.99 earnings per share for the quarter, missing the Zacks’ consensus estimate of $1.00 by ($0.01). The business had revenue of $185.27 million for the quarter, compared to analysts’ expectations of $185.43 million. Prosperity Bancshares had a return on equity of 7.28% and a net margin of 34.28%. During the same quarter in the previous year, the firm posted $0.99 EPS. sell-side analysts forecast that Prosperity Bancshares will post 4.78 EPS for the current fiscal year.
Prosperity Bancshares declared that its board has approved a stock repurchase program on Friday, January 19th that permits the company to buyback 3,470,000 outstanding shares. This buyback authorization permits the bank to buy shares of its stock through open market purchases. Shares buyback programs are typically an indication that the company’s leadership believes its stock is undervalued.
The company also recently declared a quarterly dividend, which will be paid on Monday, April 2nd. Shareholders of record on Friday, March 16th will be given a dividend of $0.36 per share. This represents a $1.44 annualized dividend and a yield of 1.86%. The ex-dividend date is Thursday, March 15th. Prosperity Bancshares’s dividend payout ratio (DPR) is 36.64%.
In other Prosperity Bancshares news, CFO David Hollaway sold 1,800 shares of the business’s stock in a transaction on Monday, February 5th. The stock was sold at an average price of $75.60, for a total transaction of $136,080.00. Following the sale, the chief financial officer now directly owns 168,684 shares in the company, valued at $12,752,510.40. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Michael Epps sold 4,000 shares of the business’s stock in a transaction on Thursday, February 1st. The stock was sold at an average price of $75.15, for a total value of $300,600.00. The disclosure for this sale can be found here. Insiders sold a total of 10,800 shares of company stock worth $818,280 over the last quarter. Company insiders own 4.93% of the company’s stock.
A number of institutional investors have recently added to or reduced their stakes in PB. Janus Henderson Group PLC increased its stake in Prosperity Bancshares by 108.1% in the third quarter. Janus Henderson Group PLC now owns 1,957,916 shares of the bank’s stock valued at $128,701,000 after purchasing an additional 1,017,115 shares during the last quarter. Koch Industries Inc. purchased a new stake in Prosperity Bancshares during the second quarter valued at about $333,000. Deprince Race & Zollo Inc. boosted its position in shares of Prosperity Bancshares by 59.5% in the third quarter. Deprince Race & Zollo Inc. now owns 684,927 shares of the bank’s stock worth $45,020,000 after buying an additional 255,384 shares during the period. Envestnet Asset Management Inc. boosted its position in shares of Prosperity Bancshares by 3,568.8% in the third quarter. Envestnet Asset Management Inc. now owns 190,669 shares of the bank’s stock worth $12,532,000 after buying an additional 185,472 shares during the period. Finally, Handelsbanken Fonder AB boosted its position in shares of Prosperity Bancshares by 45.2% in the third quarter. Handelsbanken Fonder AB now owns 450,000 shares of the bank’s stock worth $29,578,000 after buying an additional 140,000 shares during the period. Hedge funds and other institutional investors own 79.51% of the company’s stock.
About Prosperity Bancshares
Prosperity Bancshares, Inc is a financial holding company, which operates through its bank subsidiary, Prosperity Bank (the Bank). The Bank provides a range of financial products and services to small and medium-sized businesses and consumers. The Company, through the Bank, offers a range of loan and deposit products to its customers.
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