DA Davidson Has Bearish Outlook for PB FY2025 Earnings

Prosperity Bancshares, Inc. (NYSE:PB) – Equities research analysts at DA Davidson cut their FY2025 earnings estimates for shares of Prosperity Bancshares in a note issued to investors on Wednesday, October 16th. DA Davidson analyst P. Winter now expects that the bank will post earnings of $5.64 per share for the year, down from their previous forecast of $5.66. DA Davidson currently has a “Neutral” rating and a $78.00 target price on the stock. The consensus estimate for Prosperity Bancshares’ current full-year earnings is $5.03 per share.

Prosperity Bancshares (NYSE:PB) last released its earnings results on Wednesday, July 24th. The bank reported $1.22 EPS for the quarter, topping analysts’ consensus estimates of $1.20 by $0.02. The firm had revenue of $458.95 million during the quarter, compared to analyst estimates of $290.06 million. Prosperity Bancshares had a net margin of 25.10% and a return on equity of 6.32%. During the same quarter in the previous year, the business earned $1.21 EPS.

Other equities analysts have also recently issued research reports about the company. Truist Financial cut Prosperity Bancshares from a “buy” rating to a “hold” rating and reduced their target price for the stock from $81.00 to $79.00 in a report on Friday, September 20th. Royal Bank of Canada boosted their price objective on shares of Prosperity Bancshares from $70.00 to $74.00 and gave the company a “sector perform” rating in a report on Thursday, July 25th. Stephens raised shares of Prosperity Bancshares from an “equal weight” rating to an “overweight” rating in a research note on Wednesday, June 26th. Piper Sandler lifted their price target on shares of Prosperity Bancshares from $73.00 to $80.00 and gave the stock an “overweight” rating in a research report on Thursday, July 25th. Finally, Hovde Group upped their price objective on shares of Prosperity Bancshares from $80.50 to $82.50 and gave the company an “outperform” rating in a research report on Monday, August 26th. One research analyst has rated the stock with a sell rating, four have assigned a hold rating and nine have given a buy rating to the company’s stock. Based on data from MarketBeat, Prosperity Bancshares currently has a consensus rating of “Moderate Buy” and a consensus price target of $77.27.

Prosperity Bancshares Stock Up 0.8 %

Shares of Prosperity Bancshares stock opened at $74.73 on Thursday. The business has a fifty day simple moving average of $71.81 and a 200 day simple moving average of $66.20. The stock has a market cap of $7.17 billion, a PE ratio of 17.22, a price-to-earnings-growth ratio of 1.49 and a beta of 0.89. Prosperity Bancshares has a 12 month low of $49.60 and a 12 month high of $74.96.

Prosperity Bancshares Increases Dividend

The company also recently announced 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. This represents a $2.32 dividend on an annualized basis and a yield of 3.10%. The ex-dividend date is Friday, December 13th. This is a positive change from Prosperity Bancshares’s previous quarterly dividend of $0.56. Prosperity Bancshares’s dividend payout ratio (DPR) is currently 51.61%.

Institutional Investors Weigh In On Prosperity Bancshares

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. GAMMA Investing LLC grew its stake 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 purchasing an additional 177 shares in the last quarter. Retirement Systems of Alabama grew its stake in shares of Prosperity Bancshares by 0.3% in the first quarter. Retirement Systems of Alabama now owns 117,692 shares of the bank’s stock valued at $7,742,000 after buying an additional 319 shares in the last quarter. Inspire Investing LLC increased its holdings in Prosperity Bancshares by 6.1% during the second quarter. Inspire Investing LLC now owns 5,739 shares of the bank’s stock worth $351,000 after buying an additional 328 shares during the last quarter. Fifth Third Bancorp increased its holdings in Prosperity Bancshares by 47.6% during the second quarter. Fifth Third Bancorp now owns 1,030 shares of the bank’s stock worth $63,000 after buying an additional 332 shares during the last quarter. Finally, PNC Financial Services Group Inc. raised its position in Prosperity Bancshares by 10.1% during the fourth quarter. PNC Financial Services Group Inc. now owns 3,855 shares of the bank’s stock worth $261,000 after acquiring an additional 355 shares in the last quarter. 80.69% of the stock is currently owned by institutional investors and hedge funds.

Prosperity Bancshares Company Profile

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.