DA Davidson Analysts Boost Earnings Estimates for PB

Prosperity Bancshares, Inc. (NYSE:PB) – Investment analysts at DA Davidson boosted their Q4 2024 EPS estimates for Prosperity Bancshares in a research note issued to investors on Thursday, December 19th. DA Davidson analyst P. Winter now anticipates that the bank will earn $1.34 per share for the quarter, up from their prior estimate of $1.33. DA Davidson currently has a “Neutral” rating and a $78.00 price objective on the stock. The consensus estimate for Prosperity Bancshares’ current full-year earnings is $5.05 per share. DA Davidson also issued estimates for Prosperity Bancshares’ FY2025 earnings at $5.79 EPS.

Prosperity Bancshares (NYSE:PB) last released its quarterly earnings results on Wednesday, October 23rd. The bank reported $1.34 earnings per share for the quarter, topping analysts’ consensus estimates of $1.31 by $0.03. Prosperity Bancshares had a return on equity of 6.46% and a net margin of 25.39%. The company had revenue of $459.00 million during the quarter, compared to analysts’ expectations of $299.83 million. During the same quarter in the prior year, the firm posted $1.20 EPS.

Several other equities research analysts have also commented on the stock. Truist Financial lowered shares of Prosperity Bancshares from a “buy” rating to a “hold” rating and cut their price target for the stock from $81.00 to $79.00 in a report on Friday, September 20th. Royal Bank of Canada reissued a “sector perform” rating and set a $77.00 target price on shares of Prosperity Bancshares in a research note on Thursday, October 24th. Wolfe Research restated a “peer perform” rating on shares of Prosperity Bancshares in a research report on Thursday, December 5th. Hovde Group lifted their price objective on Prosperity Bancshares from $80.50 to $82.50 and gave the stock an “outperform” rating in a report on Monday, August 26th. Finally, Barclays boosted their price objective on Prosperity Bancshares from $76.00 to $84.00 and gave the stock an “equal weight” rating in a research note on Thursday, December 5th. One analyst has rated the stock with a sell rating, five have given a hold rating and seven have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $81.65.

Prosperity Bancshares Price Performance

Shares of PB stock opened at $74.11 on Friday. Prosperity Bancshares has a 1-year low of $57.16 and a 1-year high of $86.75. The company has a market cap of $7.06 billion, a price-to-earnings ratio of 15.73, a PEG ratio of 1.19 and a beta of 0.92. The stock has a 50 day simple moving average of $78.64 and a 200-day simple moving average of $71.45.

Hedge Funds Weigh In On Prosperity Bancshares

Large investors have recently modified their holdings of the business. Quarry LP lifted its holdings in shares of Prosperity Bancshares by 533.3% in the 2nd quarter. Quarry LP now owns 494 shares of the bank’s stock worth $30,000 after acquiring an additional 416 shares during the last quarter. Quest Partners LLC lifted its stake in Prosperity Bancshares by 3,147.1% during the second quarter. Quest Partners LLC now owns 552 shares of the bank’s stock worth $34,000 after purchasing an additional 535 shares in the last quarter. Strategic Financial Concepts LLC purchased a new position in shares of Prosperity Bancshares during the second quarter worth $43,000. Headlands Technologies LLC acquired a new stake in shares of Prosperity Bancshares in the second quarter valued at $46,000. Finally, GAMMA Investing LLC raised its holdings in shares of Prosperity Bancshares by 47.9% in the 3rd quarter. GAMMA Investing LLC now owns 701 shares of the bank’s stock valued at $51,000 after buying an additional 227 shares during the period. Institutional investors and hedge funds own 80.69% of the company’s stock.

Insider Buying and Selling

In other news, Chairman H E. Timanus, Jr. sold 4,000 shares of the stock in a transaction that occurred on Monday, November 25th. The shares were sold at an average price of $86.50, for a total value of $346,000.00. Following the completion of the sale, the chairman now owns 229,953 shares of the company’s stock, valued at $19,890,934.50. This represents a 1.71 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Ned S. Holmes sold 500 shares of Prosperity Bancshares stock in a transaction that occurred on Wednesday, November 27th. The shares were sold at an average price of $84.66, for a total transaction of $42,330.00. Following the sale, the director now directly owns 113,315 shares in the company, valued at approximately $9,593,247.90. The trade was a 0.44 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 12,100 shares of company stock worth $1,004,719. 4.28% of the stock is owned by corporate insiders.

Prosperity Bancshares Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, January 2nd. Investors of record on Friday, December 13th will be issued a $0.58 dividend. This represents a $2.32 annualized dividend and a dividend yield of 3.13%. The ex-dividend date of this dividend is Friday, December 13th. This is a boost from Prosperity Bancshares’s previous quarterly dividend of $0.56. Prosperity Bancshares’s dividend payout ratio (DPR) is currently 49.26%.

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.