Prosperity Bancshares (NYSE:PB) Announces Quarterly Earnings Results

Prosperity Bancshares (NYSE:PB) released its quarterly earnings data on Wednesday. The bank reported $1.46 earnings per share for the quarter, topping the consensus estimate of $1.45 by $0.01, FiscalAI reports. Prosperity Bancshares had a return on equity of 7.06% and a net margin of 30.28%.The business had revenue of $317.73 million during the quarter, compared to analyst estimates of $319.30 million. During the same period last year, the company posted $1.37 EPS. The company’s revenue was down 5.9% compared to the same quarter last year.

Prosperity Bancshares Trading Down 9.1%

Shares of PB traded down $6.60 on Wednesday, reaching $66.30. 1,612,434 shares of the company’s stock traded hands, compared to its average volume of 846,388. The stock has a market cap of $6.30 billion, a PE ratio of 11.79, a PEG ratio of 0.94 and a beta of 0.68. The stock’s 50 day simple moving average is $70.84 and its two-hundred day simple moving average is $68.31. Prosperity Bancshares has a 52-week low of $61.06 and a 52-week high of $82.75.

Prosperity Bancshares Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be given a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a dividend yield of 3.6%. The ex-dividend date of this dividend is Friday, March 13th. Prosperity Bancshares’s dividend payout ratio (DPR) is presently 42.78%.

Insider Transactions at Prosperity Bancshares

In other news, Director Harrison Stafford II sold 800 shares of the company’s stock in a transaction dated Thursday, December 4th. The stock was sold at an average price of $70.76, for a total transaction of $56,608.00. Following the sale, the director directly owned 107,937 shares in the company, valued at $7,637,622.12. This represents a 0.74% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Ned S. Holmes sold 600 shares of Prosperity Bancshares stock in a transaction that occurred on Wednesday, November 5th. The shares were sold at an average price of $66.84, for a total transaction of $40,104.00. Following the sale, the director owned 43,300 shares of the company’s stock, valued at approximately $2,894,172. The trade was a 1.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 15,050 shares of company stock worth $1,056,009 over the last quarter. Corporate insiders own 4.20% of the company’s stock.

Hedge Funds Weigh In On Prosperity Bancshares

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. AQR Capital Management LLC lifted its stake in shares of Prosperity Bancshares by 175.1% in the second quarter. AQR Capital Management LLC now owns 2,383,162 shares of the bank’s stock worth $167,393,000 after buying an additional 1,516,939 shares in the last quarter. State Street Corp raised its stake in shares of Prosperity Bancshares by 6.6% in the third quarter. State Street Corp now owns 5,580,039 shares of the bank’s stock worth $373,231,000 after buying an additional 343,062 shares during the period. Amundi boosted its position in shares of Prosperity Bancshares by 1,556.6% in the third quarter. Amundi now owns 316,340 shares of the bank’s stock worth $20,907,000 after purchasing an additional 297,244 shares during the period. Voloridge Investment Management LLC raised its holdings in Prosperity Bancshares by 151.0% during the third quarter. Voloridge Investment Management LLC now owns 473,400 shares of the bank’s stock valued at $31,410,000 after acquiring an additional 284,803 shares during the period. Finally, Qube Research & Technologies Ltd boosted its stake in Prosperity Bancshares by 70.8% in the 2nd quarter. Qube Research & Technologies Ltd now owns 522,107 shares of the bank’s stock worth $36,673,000 after purchasing an additional 216,441 shares during the period. Hedge funds and other institutional investors own 80.69% of the company’s stock.

Analyst Upgrades and Downgrades

PB has been the subject of several research analyst reports. Hovde Group cut Prosperity Bancshares from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, November 26th. Stephens raised their target price on shares of Prosperity Bancshares from $77.00 to $81.00 and gave the company an “overweight” rating in a research note on Thursday, October 30th. TD Cowen reaffirmed a “buy” rating on shares of Prosperity Bancshares in a research note on Wednesday, January 7th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Prosperity Bancshares in a research report on Wednesday, October 8th. Finally, Raymond James Financial downgraded Prosperity Bancshares from an “outperform” rating to a “market perform” rating in a report on Wednesday, January 7th. Seven investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $80.75.

Key Stories Impacting Prosperity Bancshares

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

• Positive Sentiment: Board authorized a stock repurchase program for up to ~5% of outstanding shares (≈4.87M shares), which supports EPS and signals management confidence. PROSPERITY BANCSHARES, INC.® ANNOUNCES STOCK REPURCHASE PROGRAM
• Neutral Sentiment: Q4 results: EPS beat by $0.01 at $1.46 vs. $1.45 estimate, showing modest earnings resilience, but revenue came in slightly below consensus ($317.7M vs. $319.3M) and revenue was down ~5.9% YoY — a mixed print that likely tempered any upside from the tiny EPS beat. Prosperity Bancshares (PB) Tops Q4 Earnings and Revenue Estimates
• Negative Sentiment: Prosperity announced a definitive agreement to acquire Stellar Bancorp in a ~ $2.0 billion cash-and-stock deal (adds 52 branches, creates the #2 Texas bank by deposits). While strategic for scale and deposit growth, the size and financing mix introduce near-term dilution, integration risk and execution uncertainty — key reasons investors sold off. Prosperity Bancshares to buy Stellar Bancorp in $2 billion deal

About Prosperity Bancshares

Prosperity Bancshares, Inc is a holding company for Prosperity Bank, offering a broad range of commercial and consumer banking services across Texas, Oklahoma, Arkansas and Louisiana. Through its network of branches and digital platforms, the company provides deposit products, business and real estate lending, treasury management, mortgage origination and servicing, as well as wealth management and trust services.

Originally chartered in 1911 as First National Bank in McKinney, Texas, the organization rebranded to Prosperity Bank in 2009 following a series of strategic acquisitions aimed at deepening its regional presence.