Prosperity Bancshares (NYSE:PB) Stock Price Target Cut by TD Cowen

Prosperity Bancshares (NYSE:PB) had its price objective cut by stock analysts at TD Cowen from $84.00 to $78.00 in a report issued on Monday, Benzinga reports. The firm presently has a “buy” rating on the bank’s stock. TD Cowen’s target price suggests a potential upside of 16.33% from the stock’s previous close.

Other equities research analysts have also issued research reports about the company. Royal Bank Of Canada raised their price objective on Prosperity Bancshares from $78.00 to $80.00 and gave the company a “sector perform” rating in a research note on Thursday, July 30th. Weiss Ratings downgraded Prosperity Bancshares from a “buy (b)” rating to a “buy (b-)” rating in a report on Thursday, September 24th. Barclays upped their target price on Prosperity Bancshares from $68.00 to $70.00 and gave the company an “underweight” rating in a research report on Monday. Citigroup reduced their target price on Prosperity Bancshares from $79.00 to $77.00 and set a “neutral” rating for the company in a research note on Tuesday, September 22nd. Finally, Wall Street Zen raised shares of Prosperity Bancshares from a “sell” rating to a “hold” rating in a research report on Saturday, August 1st. Six research analysts have rated the stock with a Buy rating, six have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Prosperity Bancshares presently has an average rating of “Hold” and an average target price of $78.00.

Prosperity Bancshares Stock Performance

NYSE:PB opened at $67.05 on Monday. The company has a debt-to-equity ratio of 0.01, a current ratio of 0.75 and a quick ratio of 0.75. The firm has a 50-day moving average of $71.60 and a two-hundred day moving average of $70.44. The stock has a market cap of $6.76 billion, a P/E ratio of 11.62, a PEG ratio of 0.73 and a beta of 0.66. Prosperity Bancshares has a 1-year low of $61.06 and a 1-year high of $77.20.

Prosperity Bancshares (NYSE:PB) last announced its earnings results on Wednesday, July 29th. The bank reported $1.62 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.50 by $0.12. Prosperity Bancshares had a return on equity of 7.39% and a net margin of 29.95%.The business had revenue of $391.25 million for the quarter, compared to analyst estimates of $380.73 million. During the same period in the previous year, the company earned $1.42 earnings per share. The company’s revenue for the quarter was up 25.9% compared to the same quarter last year. On average, research analysts expect that Prosperity Bancshares will post 6.48 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Prosperity Bancshares news, Director Ned Holmes sold 600 shares of the company’s stock in a transaction that occurred on Wednesday, September 30th. The stock was sold at an average price of $66.56, for a total transaction of $39,936.00. Following the sale, the director owned 38,600 shares in the company, valued at $2,569,216. This represents a 1.53% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Insiders sold 10,500 shares of company stock valued at $757,621 over the last three months. 3.96% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the company. BlackRock Inc. acquired a new stake in shares of Prosperity Bancshares during the 2nd quarter valued at approximately $746,776,000. Barrow Hanley Mewhinney & Strauss LLC bought a new position in Prosperity Bancshares during the second quarter worth $350,099,000. Dimensional Fund Advisors LP boosted its holdings in Prosperity Bancshares by 4.3% in the first quarter. Dimensional Fund Advisors LP now owns 4,929,309 shares of the bank’s stock worth $331,142,000 after purchasing an additional 205,291 shares during the period. North Reef Capital Management LP boosted its holdings in Prosperity Bancshares by 149.0% in the first quarter. North Reef Capital Management LP now owns 1,107,877 shares of the bank’s stock worth $74,427,000 after purchasing an additional 662,877 shares during the period. Finally, Algebris UK Ltd. bought a new stake in Prosperity Bancshares during the second quarter valued at $59,465,000. Institutional investors and hedge funds own 80.69% of the company’s stock.

Key Headlines Impacting Prosperity Bancshares

Here are the key news stories impacting Prosperity Bancshares this week:

• Positive Sentiment: Raymond James raised its rating on Prosperity Bancshares to Outperform from Market Perform and established a $78 target. The call suggests the firm sees improved earnings, valuation, or operating prospects relative to the broader banking sector. Raymond James upgrades Prosperity Bancshares stock to Outperform
• Positive Sentiment: Morgan Stanley raised its price target for PB, adding another favorable analyst revision and reinforcing the view that the shares may be undervalued at current levels. The updated target was not specified in the available report. Morgan Stanley raises target for Prosperity Bancshares stock
• Neutral Sentiment: PB’s latest reported quarter showed earnings and revenue above consensus, with year-over-year revenue growth, supporting the fundamental case behind the recent analyst optimism. However, the shares remain below their 50-day and 200-day moving averages, indicating continued technical pressure.
• Negative Sentiment: TD Cowen lowered its price target to $78 from $84, citing a more cautious outlook, although it maintained a Buy rating. The reduced target tempers the impact of the other upgrades and signals some uncertainty about the bank’s growth or valuation prospects. TD Cowen Issues Pessimistic Forecast for Prosperity Bancshares

About Prosperity Bancshares

Prosperity Bancshares, Inc is a bank holding company headquartered in Houston, Texas. Through its principal subsidiary, Prosperity Bank, the company provides a range of banking and financial services to individuals, businesses and institutional customers.

Prosperity Bank offers deposit accounts, commercial and consumer lending, mortgage and real estate loans, treasury management, cash management, online and mobile banking, and other related financial services. Its lending activities support businesses, agricultural customers, real estate projects and consumers.

Founded in 1983, Prosperity Bancshares has expanded through organic growth and acquisitions.