Prosperity Bancshares (NYSE:PB) Hits New 1-Year High on Strong Earnings

Prosperity Bancshares, Inc. (NYSE:PB) shares hit a new 52-week high during trading on Wednesday following a better than expected earnings announcement. The company traded as high as $75.00 and last traded at $71.34, with a volume of 60936 shares traded. The stock had previously closed at $72.58.

The bank reported $1.34 earnings per share for the quarter, topping the consensus estimate of $1.31 by $0.03. Prosperity Bancshares had a return on equity of 6.32% and a net margin of 25.10%. During the same quarter in the previous year, the company posted $1.20 EPS.

Prosperity Bancshares Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, January 2nd. Investors of record on Friday, December 13th will be issued a $0.58 dividend. The ex-dividend date is Friday, December 13th. This is a boost from Prosperity Bancshares’s previous quarterly dividend of $0.56. This represents a $2.32 dividend on an annualized basis and a yield of 3.16%. Prosperity Bancshares’s dividend payout ratio is currently 49.02%.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on PB shares. Morgan Stanley upgraded Prosperity Bancshares from an “equal weight” rating to an “overweight” rating and upped their price objective for the company from $75.00 to $86.00 in a report on Monday, August 5th. Barclays upped their price objective on Prosperity Bancshares from $75.00 to $76.00 and gave the company an “equal weight” rating in a report on Thursday. Royal Bank of Canada reiterated a “sector perform” rating and issued a $77.00 price objective on shares of Prosperity Bancshares in a report on Thursday. Hovde Group upped their price objective on Prosperity Bancshares from $80.50 to $82.50 and gave the company an “outperform” rating in a report on Monday, August 26th. Finally, Wedbush restated an “outperform” rating and set a $90.00 price target on shares of Prosperity Bancshares in a research note on Thursday. One research analyst has rated the stock with a sell rating, four have given a hold rating and nine have assigned a buy rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $77.58.

Institutional Trading of Prosperity Bancshares

A number of large investors have recently modified their holdings of PB. GAMMA Investing LLC increased its holdings in Prosperity Bancshares by 59.6% in the second quarter. GAMMA Investing LLC now owns 474 shares of the bank’s stock valued at $29,000 after buying an additional 177 shares during the last quarter. Quarry LP increased its holdings in Prosperity Bancshares by 533.3% in the second quarter. Quarry LP now owns 494 shares of the bank’s stock valued at $30,000 after buying an additional 416 shares during the last quarter. Quest Partners LLC increased its holdings in Prosperity Bancshares by 3,147.1% in the second quarter. Quest Partners LLC now owns 552 shares of the bank’s stock valued at $34,000 after buying an additional 535 shares during the last quarter. Strategic Financial Concepts LLC purchased a new position in Prosperity Bancshares in the second quarter valued at $43,000. Finally, Headlands Technologies LLC purchased a new position in Prosperity Bancshares in the second quarter valued at $46,000. Hedge funds and other institutional investors own 80.69% of the company’s stock.

Prosperity Bancshares Stock Up 0.3 %

The stock has a market cap of $7.00 billion, a PE ratio of 16.09, a price-to-earnings-growth ratio of 1.52 and a beta of 0.89. The firm has a fifty day moving average of $72.19 and a 200 day moving average of $66.58.

About Prosperity Bancshares

Prosperity Bancshares, Inc operates as bank holding company for the Prosperity Bank that provides financial products and services to businesses and consumers. It accepts various deposit products, such as demand, savings, money market, and time accounts, as well as and certificates of deposit. The company also offers 1-4 family residential mortgage, commercial real estate and multifamily residential, commercial and industrial, agricultural, 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; term loans and lines of credit; and consumer durables and home equity loans, as well as loans for working capital, business expansion, and purchase of equipment and machinery.