Prosperity Bancshares (PB) Downgraded by Zacks Investment Research

Prosperity Bancshares (NYSE:PB) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Friday.

According to Zacks, “Prosperity Bancshares does not have a decent earnings surprise history. It beat the Zacks Consensus Estimate in only one of the trailing four quarters. Further, earnings estimates have remained stable ahead of the company’s fourth quarter 2018 results. Mounting operating expenses and significant exposure to real estate in the company’s loan portfolio remain major near-term concerns. However, the company’s shares have outperformed the industry in the past year. Although the bank's continued expansion via acquisitions, and solid loan and deposit balances support profitability, dismal performance of mortgage banking business (owing to higher interest rates) will impede revenue growth to some extent.”

A number of other analysts also recently commented on the company. Barclays downgraded Prosperity Bancshares from an “overweight” rating to an “equal weight” rating and set a $71.00 target price on the stock. in a research report on Thursday. Robert W. Baird upgraded Prosperity Bancshares from a “neutral” rating to an “outperform” rating in a research report on Thursday, October 25th. SunTrust Banks decreased their target price on Prosperity Bancshares to $68.00 and set a “buy” rating on the stock in a research report on Thursday, October 25th. They noted that the move was a valuation call. Stephens reiterated a “hold” rating and set a $73.00 target price on shares of Prosperity Bancshares in a research report on Wednesday, December 19th. Finally, Hovde Group upgraded Prosperity Bancshares from a “market perform” rating to an “outperform” rating and set a $70.00 target price on the stock in a research report on Wednesday, January 2nd. One analyst has rated the stock with a sell rating, six have issued a hold rating and three have assigned a buy rating to the stock. The company has an average rating of “Hold” and an average price target of $71.57.

PB stock traded up $0.15 on Friday, reaching $67.04. 9,208 shares of the company’s stock were exchanged, compared to its average volume of 494,353. Prosperity Bancshares has a twelve month low of $57.01 and a twelve month high of $79.20. The firm has a market capitalization of $4.69 billion, a PE ratio of 16.98, a P/E/G ratio of 1.62 and a beta of 1.29.

Prosperity Bancshares (NYSE:PB) last announced its quarterly earnings data on Wednesday, October 24th. The bank reported $1.18 earnings per share for the quarter, hitting the Zacks’ consensus estimate of $1.18. Prosperity Bancshares had a return on equity of 7.86% and a net margin of 36.91%. The firm had revenue of $187.94 million for the quarter, compared to analyst estimates of $189.08 million. During the same quarter in the prior year, the company posted $0.98 earnings per share. On average, equities research analysts anticipate that Prosperity Bancshares will post 4.59 earnings per share for the current year.

In other news, Director Robert H. Steelhammer sold 2,180 shares of the company’s stock in a transaction on Tuesday, October 30th. The stock was sold at an average price of $65.44, for a total value of $142,659.20. Following the sale, the director now directly owns 133,055 shares in the company, valued at $8,707,119.20. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Vice Chairman H E. Timanus, Jr. acquired 5,000 shares of Prosperity Bancshares stock in a transaction dated Thursday, December 20th. The stock was bought at an average price of $59.14 per share, for a total transaction of $295,700.00. Following the completion of the transaction, the insider now directly owns 142,447 shares of the company’s stock, valued at $8,424,315.58. The disclosure for this purchase can be found here. 5.05% of the stock is owned by corporate insiders.

Several large investors have recently modified their holdings of PB. Oppenheimer Asset Management Inc. purchased a new position in Prosperity Bancshares during the third quarter worth about $200,000. Benjamin F. Edwards & Company Inc. purchased a new position in Prosperity Bancshares during the third quarter worth about $222,000. WINTON GROUP Ltd purchased a new position in Prosperity Bancshares during the third quarter worth about $228,000. Cambridge Investment Research Advisors Inc. acquired a new stake in Prosperity Bancshares during the third quarter worth about $244,000. Finally, PNC Financial Services Group Inc. increased its stake in Prosperity Bancshares by 43.2% during the third quarter. PNC Financial Services Group Inc. now owns 4,276 shares of the bank’s stock worth $296,000 after acquiring an additional 1,290 shares during the last quarter. Institutional investors and hedge funds own 81.26% of the company’s stock.

Prosperity Bancshares Company Profile

Prosperity Bancshares, Inc operates as bank holding company for the Prosperity Bank that provides retail and commercial banking services to small and medium-sized businesses, and consumers. It accepts various deposit products, such as demand, savings, money market, and time accounts. The company also offers 1-4 family residential mortgage, commercial mortgage and multifamily residential, commercial and industrial, agricultural real estate, 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; and consumer durables and home equity loans.

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Analyst Recommendations for Prosperity Bancshares (NYSE:PB)

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