Prosperity Bancshares (NYSE:PB) Reaches New 1-Year High – Here’s Why

Prosperity Bancshares, Inc. (NYSE:PB) hit a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $75.00 and last traded at $71.34, with a volume of 60936 shares changing hands. The stock had previously closed at $72.58.

Analyst Upgrades and Downgrades

PB has been the subject of several research analyst reports. Compass Point upped their price target on shares of Prosperity Bancshares from $73.00 to $80.00 and gave the stock a “buy” rating in a research report on Friday, July 26th. StockNews.com cut Prosperity Bancshares from a “hold” rating to a “sell” rating in a research report on Wednesday, August 28th. Piper Sandler raised their price objective on Prosperity Bancshares from $73.00 to $80.00 and gave the company an “overweight” rating in a report on Thursday, July 25th. Hovde Group increased their price target on Prosperity Bancshares from $80.50 to $82.50 and gave the company an “outperform” rating in a report on Monday, August 26th. Finally, Royal Bank of Canada raised their target price on Prosperity Bancshares from $70.00 to $74.00 and gave the stock a “sector perform” rating in a research note on Thursday, July 25th. One analyst has rated the stock with a sell rating, four have given a hold rating and nine have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $77.27.

Prosperity Bancshares Stock Performance

The stock’s 50-day moving average is $72.06 and its two-hundred day moving average is $66.49. The stock has a market cap of $6.79 billion, a PE ratio of 15.88, a PEG ratio of 1.53 and a beta of 0.89.

Prosperity Bancshares (NYSE:PB) last released its quarterly earnings results on Wednesday, July 24th. The bank reported $1.22 EPS for the quarter, topping the consensus estimate of $1.20 by $0.02. The business had revenue of $458.95 million during the quarter, compared to analyst estimates of $290.06 million. Prosperity Bancshares had a return on equity of 6.32% and a net margin of 25.10%. During the same period last year, the business posted $1.21 earnings per share. Analysts forecast that Prosperity Bancshares, Inc. will post 5.03 EPS for the current year.

Prosperity Bancshares Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, January 2nd. Shareholders of record on Friday, December 13th will be given a $0.58 dividend. This is an increase from Prosperity Bancshares’s previous quarterly dividend of $0.56. This represents a $2.32 annualized dividend and a yield of 3.26%. The ex-dividend date of this dividend is Friday, December 13th. Prosperity Bancshares’s payout ratio is currently 49.02%.

Institutional Investors Weigh In On Prosperity Bancshares

A number of hedge funds have recently added to or reduced their stakes in the business. Copeland Capital Management LLC grew its position in shares of Prosperity Bancshares by 2.7% during the third quarter. Copeland Capital Management LLC now owns 472,895 shares of the bank’s stock worth $34,082,000 after buying an additional 12,573 shares in the last quarter. Allspring Global Investments Holdings LLC lifted its stake in Prosperity Bancshares by 21.8% in the third quarter. Allspring Global Investments Holdings LLC now owns 272,331 shares of the bank’s stock worth $19,627,000 after acquiring an additional 48,719 shares during the last quarter. Raymond James & Associates grew its holdings in Prosperity Bancshares by 7.0% during the 3rd quarter. Raymond James & Associates now owns 31,942 shares of the bank’s stock worth $2,302,000 after acquiring an additional 2,082 shares in the last quarter. Blue Trust Inc. grew its holdings in Prosperity Bancshares by 181.6% during the 3rd quarter. Blue Trust Inc. now owns 859 shares of the bank’s stock worth $62,000 after acquiring an additional 554 shares in the last quarter. Finally, Hunter Perkins Capital Management LLC increased its position in shares of Prosperity Bancshares by 2.8% in the 3rd quarter. Hunter Perkins Capital Management LLC now owns 159,220 shares of the bank’s stock valued at $11,530,000 after purchasing an additional 4,265 shares during the last quarter. 80.69% of the stock is currently owned by institutional investors and hedge funds.

About Prosperity Bancshares

Prosperity Bancshares, Inc operates as bank holding company for the Prosperity Bank that provides financial products and services to businesses and consumers. It accepts various deposit products, such as demand, savings, money market, and time accounts, as well as and certificates of deposit. The company also offers 1-4 family residential mortgage, commercial real estate and multifamily residential, commercial and industrial, agricultural, and non-real estate agricultural loans, as well as construction, land development, and other land loans; consumer loans, including automobile, recreational vehicle, boat, home improvement, personal, and deposit account collateralized loans; term loans and lines of credit; and consumer durables and home equity loans, as well as loans for working capital, business expansion, and purchase of equipment and machinery.