Prosperity Bancshares (NYSE:PB) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued to clients and investors on Friday.
According to Zacks, “Shares of Prosperity Bancshares have outperformed the industry over the past six months. Yet, the company does not have a decent earnings surprise history. It beat the Zacks Consensus Estimate in only one of the trailing four quarters. Its third-quarter 2018 results show organic growth efforts and solid asset quality. The bank's continued expansion via acquisitions, solid loan and deposit balances, lower tax rates, and steady improvement in asset quality will likely support profitability. Also, enhanced capital deployment activities indicate a strong balance sheet position. However, mounting operating expenses and significant exposure to real estate in the company’s loan portfolio remain major near-term concerns. Also, dismal performance of the company's mortgage banking business (owing to higher interest rates) will impede revenue growth to some extent.”
Several other equities research analysts also recently issued reports on the stock. SunTrust Banks lowered their price objective on shares of Prosperity Bancshares to $68.00 and set a “buy” rating on the stock in a research note on Thursday. They noted that the move was a valuation call. Robert W. Baird upgraded shares of Prosperity Bancshares from a “neutral” rating to an “outperform” rating in a research note on Thursday. Stephens set a $70.00 price objective on shares of Prosperity Bancshares and gave the stock a “hold” rating in a research note on Wednesday. Morgan Stanley lowered their price objective on shares of Prosperity Bancshares from $75.00 to $73.00 and set an “equal weight” rating on the stock in a research note on Tuesday, September 18th. Finally, Hovde Group upgraded shares of Prosperity Bancshares from an “underperform” rating to a “market perform” rating and set a $70.00 price objective on the stock in a research note on Monday, July 9th. Nine investment analysts have rated the stock with a hold rating and three have issued a buy rating to the company. Prosperity Bancshares presently has a consensus rating of “Hold” and a consensus target price of $73.60.
Prosperity Bancshares (NYSE:PB) last announced its quarterly earnings results on Wednesday, October 24th. The bank reported $1.18 EPS for the quarter, meeting the consensus estimate of $1.18. Prosperity Bancshares had a return on equity of 7.86% and a net margin of 36.91%. The company had revenue of $187.94 million for the quarter, compared to the consensus estimate of $189.08 million. During the same quarter last year, the company posted $0.98 earnings per share. Equities research analysts forecast that Prosperity Bancshares will post 4.59 EPS for the current year.
In related news, Director Harrison Stafford II sold 1,900 shares of the firm’s stock in a transaction on Thursday, August 9th. The stock was sold at an average price of $72.97, for a total value of $138,643.00. Following the completion of the transaction, the director now directly owns 103,562 shares of the company’s stock, valued at $7,556,919.14. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Leah Henderson sold 1,000 shares of the firm’s stock in a transaction on Tuesday, August 21st. The stock was sold at an average price of $76.09, for a total value of $76,090.00. Following the completion of the transaction, the director now directly owns 1,050 shares of the company’s stock, valued at $79,894.50. The disclosure for this sale can be found here. 5.05% of the stock is owned by company insiders.
Hedge funds have recently modified their holdings of the stock. Sun Life Financial INC bought a new position in shares of Prosperity Bancshares during the second quarter valued at $127,000. Oppenheimer Asset Management Inc. bought a new position in shares of Prosperity Bancshares during the third quarter valued at $200,000. GWM Advisors LLC bought a new position in shares of Prosperity Bancshares during the second quarter valued at $212,000. GSA Capital Partners LLP bought a new position in shares of Prosperity Bancshares during the first quarter valued at $228,000. Finally, ING Groep NV bought a new position in shares of Prosperity Bancshares during the second quarter valued at $301,000. 77.66% of the stock is owned by hedge funds and other institutional investors.
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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