Prosperity Bancshares (NYSE:PB) Reaches New 12-Month High – Should You Buy?

Shares of Prosperity Bancshares, Inc. (NYSE:PB) hit a new 52-week high during trading on Wednesday . The stock traded as high as $79.36 and last traded at $79.36, with a volume of 5631 shares. The stock had previously closed at $73.89.

Wall Street Analysts Forecast Growth

Several research firms recently commented on PB. Royal Bank of Canada reaffirmed a “sector perform” rating and issued a $77.00 price objective on shares of Prosperity Bancshares in a research report on Thursday, October 24th. Hovde Group increased their price objective on Prosperity Bancshares from $80.50 to $82.50 and gave the stock an “outperform” rating in a report on Monday, August 26th. Piper Sandler lifted their target price on Prosperity Bancshares from $73.00 to $80.00 and gave the company an “overweight” rating in a research report on Thursday, July 25th. Truist Financial cut shares of Prosperity Bancshares from a “buy” rating to a “hold” rating and decreased their price target for the stock from $81.00 to $79.00 in a research note on Friday, September 20th. Finally, Wedbush reiterated an “outperform” rating and issued a $90.00 price objective on shares of Prosperity Bancshares in a report on Thursday, October 24th. One research analyst has rated the stock with a sell rating, four have given a hold rating and nine have issued a buy rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $78.96.

Prosperity Bancshares Price Performance

The stock has a market capitalization of $7.71 billion, a P/E ratio of 17.12, a PEG ratio of 1.08 and a beta of 0.89. The stock’s 50-day simple moving average is $72.43 and its 200 day simple moving average is $67.36.

Prosperity Bancshares (NYSE:PB) last posted its quarterly earnings data on Wednesday, October 23rd. The bank reported $1.34 earnings per share for the quarter, topping the consensus estimate of $1.31 by $0.03. The firm had revenue of $459.00 million for the quarter, compared to analysts’ expectations of $299.83 million. Prosperity Bancshares had a return on equity of 6.46% and a net margin of 25.39%. During the same quarter last year, the business earned $1.20 EPS. As a group, analysts expect that Prosperity Bancshares, Inc. will post 5.05 earnings per share for the current fiscal year.

Prosperity Bancshares Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, January 2nd. Investors of record on Friday, December 13th will be given a $0.58 dividend. The ex-dividend date is Friday, December 13th. This represents a $2.32 dividend on an annualized basis and a dividend yield of 2.87%. This is a boost from Prosperity Bancshares’s previous quarterly dividend of $0.56. Prosperity Bancshares’s dividend payout ratio (DPR) is presently 49.26%.

Institutional Investors Weigh In On Prosperity Bancshares

A number of large investors have recently modified their holdings of the business. MeadowBrook Investment Advisors LLC acquired a new stake in Prosperity Bancshares in the third quarter valued at about $185,000. KBC Group NV increased its position in Prosperity Bancshares by 15.4% in the 3rd quarter. KBC Group NV now owns 2,824 shares of the bank’s stock valued at $204,000 after acquiring an additional 376 shares during the period. MQS Management LLC grew its position in shares of Prosperity Bancshares by 23.7% in the 3rd quarter. MQS Management LLC now owns 5,828 shares of the bank’s stock valued at $420,000 after buying an additional 1,116 shares during the last quarter. Aigen Investment Management LP boosted its holdings in Prosperity Bancshares by 91.2% in the third quarter. Aigen Investment Management LP now owns 7,925 shares of the bank’s stock valued at $571,000 after acquiring an additional 3,780 shares during the last quarter. Finally, Los Angeles Capital Management LLC bought a new position in Prosperity Bancshares during the third quarter worth $4,804,000. Institutional investors and hedge funds own 80.69% of the company’s stock.

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.