Zacks Investment Research downgraded shares of Prosperity Bancshares (NYSE:PB) from a buy rating to a hold rating in a research report sent to investors on Tuesday.
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.”
Several other research firms have also issued reports on PB. DA Davidson upped their target price on Prosperity Bancshares to $80.00 and gave the stock a neutral rating in a report on Thursday, January 25th. SunTrust Banks reiterated a buy rating and set a $85.00 target price on shares of Prosperity Bancshares in a report on Thursday, January 25th. ValuEngine downgraded Prosperity Bancshares from a buy rating to a hold rating in a research report on Wednesday, January 10th. Keefe, Bruyette & Woods reissued a hold rating and set a $79.00 price target on shares of Prosperity Bancshares in a research report on Friday, December 22nd. Finally, Hovde Group downgraded Prosperity Bancshares from a market perform rating to an underperform rating and lowered their price target for the stock from $70.00 to $68.00 in a research report on Tuesday, January 2nd. Four analysts have rated the stock with a sell rating, nine have assigned a hold rating and two have given a buy rating to the company. The stock currently has an average rating of Hold and an average price target of $74.45.
Shares of Prosperity Bancshares (NYSE PB) opened at $77.82 on Tuesday. Prosperity Bancshares has a twelve month low of $55.84 and a twelve month high of $78.07. The stock has a market capitalization of $5,348.03, a PE ratio of 19.80, a P/E/G ratio of 1.61 and a beta of 1.37.
Prosperity Bancshares (NYSE:PB) last released its earnings results on Wednesday, January 24th. The bank reported $0.99 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.00 by ($0.01). Prosperity Bancshares had a return on equity of 7.28% and a net margin of 34.28%. The company had revenue of $185.27 million for the quarter, compared to the consensus estimate of $185.43 million. During the same quarter in the previous year, the company posted $0.99 EPS. equities analysts expect that Prosperity Bancshares will post 4.78 earnings per share for the current fiscal year.
Prosperity Bancshares declared that its board has approved a stock repurchase plan on Friday, January 19th that permits the company to repurchase 3,470,000 outstanding shares. This repurchase authorization permits the bank to buy shares of its stock through open market purchases. Shares repurchase plans are usually a sign that the company’s management believes its shares are undervalued.
The firm 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 dividend on an annualized basis and a yield of 1.85%. The ex-dividend date is Thursday, March 15th. Prosperity Bancshares’s dividend payout ratio (DPR) is presently 36.64%.
In other news, insider Michael Epps sold 4,000 shares of the company’s stock in a transaction that occurred on Thursday, February 1st. The stock was sold at an average price of $75.15, for a total value of $300,600.00. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CFO David Hollaway sold 5,000 shares of the company’s stock in a transaction that occurred on Wednesday, January 31st. The shares were sold at an average price of $76.32, for a total value of $381,600.00. The disclosure for this sale can be found here. Insiders sold 10,800 shares of company stock worth $818,280 in the last ninety days. 4.93% of the stock is owned by company insiders.
Institutional investors have recently bought and sold shares of the company. Canada Pension Plan Investment Board acquired a new position in shares of Prosperity Bancshares in the third quarter valued at approximately $105,000. Tower Research Capital LLC TRC acquired a new position in shares of Prosperity Bancshares in the fourth quarter valued at approximately $127,000. PNC Financial Services Group Inc. grew its position in shares of Prosperity Bancshares by 8.3% in the second quarter. PNC Financial Services Group Inc. now owns 2,424 shares of the bank’s stock valued at $156,000 after purchasing an additional 185 shares during the last quarter. Icon Wealth Partners LLC acquired a new position in shares of Prosperity Bancshares in the fourth quarter valued at approximately $177,000. Finally, Arvest Bank Trust Division acquired a new position in shares of Prosperity Bancshares in the fourth quarter valued at approximately $210,000. 76.63% of the stock is currently owned by institutional investors.
Prosperity Bancshares Company Profile
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.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Prosperity Bancshares Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Prosperity Bancshares and related companies with MarketBeat.com's FREE daily email newsletter.