Krilogy Financial LLC has acquired a new stake in Prosperity Bancshares, Inc. (NYSE: PB), investing approximately $530,000 in the third quarter of 2023. This acquisition, detailed in a recent Form 13F filing with the Securities and Exchange Commission, involved the purchase of 7,942 shares of the bank’s stock, further demonstrating institutional interest in the financial entity.
Several other institutional investors have also adjusted their positions in Prosperity Bancshares recently. For instance, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings by 21.4% in the first quarter, acquiring an additional 5,326 shares to bring its total to 30,198 shares, valued at $2,155,000. Similarly, NewEdge Advisors LLC raised its stake by 36.8%, now holding 7,295 shares worth $521,000 after acquiring 1,962 shares in the last quarter.
Another notable investment came from UBS AM, a distinct business unit of UBS Asset Management Americas LLC, which grew its shareholding by 5.3%, now owning 346,151 shares valued at approximately $24,705,000. Additionally, Jane Street Group LLC significantly increased its stake by 182.8%, holding 104,755 shares worth $7,476,000 after purchasing 67,712 shares.
As of now, institutional investors and hedge funds collectively own 80.69% of Prosperity Bancshares’ stock, indicating strong institutional backing.
Market Performance
On Friday, Prosperity Bancshares’ shares opened at $72.71, reflecting a 2.4% decline. The stock’s performance over the past months shows a 50-day moving average of $71.75 and a 200-day moving average of $68.45. The company’s stock reached a 12-month low of $61.06 and a high of $79.03, with a current market capitalization of $6.91 billion. Its price-to-earnings (P/E) ratio stands at 12.69, and the price-to-earnings-growth (PEG) ratio is 1.02, with a beta of 0.67 indicating lower volatility compared to the broader market.
In addition to its financial activity, Prosperity Bancshares has declared a quarterly dividend of $0.60 per share, set to be paid on April 1, 2024. Shareholders of record on March 13, 2024 will qualify for this dividend, which represents an annual dividend yield of 3.3% and translates to a total annual payout of $2.40. The company’s current dividend payout ratio is 41.88%.
Insider Trading Insights
In related news, Ned S. Holmes, a director at Prosperity Bancshares, sold 600 shares on February 11, 2024, at an average price of $76.07, totaling $45,642. Following this transaction, Holmes retains 41,900 shares valued at approximately $3,187,333, marking a 1.41% decrease in his ownership.
Over the past ninety days, corporate insiders have sold a total of 16,150 shares for around $1,145,403, with insiders owning 4.20% of the stock.
Analyst Ratings and Market Outlook
Recent evaluations from analysts show mixed sentiments regarding Prosperity Bancshares. Piper Sandler downgraded the stock from an “overweight” to a “neutral” rating, lowering its price target from $77.00 to $74.00. Similarly, Barclays cut its rating from “equal weight” to “underweight,” adjusting the target price from $75.00 to $68.00. Conversely, TD Cowen maintained a “buy” rating, while DA Davidson and Citigroup reaffirmed their “neutral” ratings with price targets of $76.00 and a consensus rating of “Hold” respectively.
Currently, market consensus indicates that seven analysts rate the stock as a “Buy,” seven as a “Hold,” and one as a “Sell,” with an average price target of $78.77 according to data from MarketBeat.com.
Company Overview
Prosperity Bancshares, Inc. serves as the holding company for Prosperity Bank, providing a comprehensive range of commercial and consumer banking services across Texas, Oklahoma, Arkansas, and Louisiana. Established in 1911 as the First National Bank in McKinney, Texas, the organization rebranded to Prosperity Bank in 2009 following a series of strategic acquisitions aimed at enhancing its regional footprint. Through its extensive branch network and digital platforms, Prosperity Bancshares offers deposit products, various lending options, treasury management, mortgage services, and wealth management.
For ongoing updates regarding Prosperity Bancshares and its performance, interested parties can refer to resources such as MarketBeat.com for the latest news and analyst ratings.
