Prosperity Bancshares, Inc. (NYSE:PB) Increases Dividend to $0.58 Per Share

Prosperity Bancshares, Inc. (NYSE:PB) declared a quarterly dividend on Thursday, October 17th, Wall Street Journal reports. Stockholders of record on Friday, December 13th will be paid a dividend of 0.58 per share by the bank on Thursday, January 2nd. This represents a $2.32 dividend on an annualized basis and a dividend 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 has increased its dividend payment by an average of 5.7% per year over the last three years and has raised its dividend every year for the last 26 years. Prosperity Bancshares has a payout ratio of 38.8% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Prosperity Bancshares to earn $5.74 per share next year, which means the company should continue to be able to cover its $2.24 annual dividend with an expected future payout ratio of 39.0%.

Prosperity Bancshares Trading Up 0.8 %

NYSE PB opened at $74.73 on Friday. The firm’s fifty day simple moving average is $71.90 and its two-hundred day simple moving average is $66.26. Prosperity Bancshares has a 12-month low of $49.60 and a 12-month high of $74.96. The firm has a market capitalization of $7.17 billion, a P/E ratio of 17.22, a P/E/G ratio of 1.49 and a beta of 0.89.

Prosperity Bancshares (NYSE:PB) last posted its quarterly earnings data on Wednesday, July 24th. The bank reported $1.22 EPS for the quarter, topping the consensus estimate of $1.20 by $0.02. The business had revenue of $458.95 million during the quarter, compared to the consensus estimate of $290.06 million. Prosperity Bancshares had a net margin of 25.10% and a return on equity of 6.32%. During the same period in the previous year, the firm posted $1.21 earnings per share. As a group, sell-side analysts predict that Prosperity Bancshares will post 5.03 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on PB shares. Hovde Group increased 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. Piper Sandler raised 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. Compass Point upped their price objective on shares of Prosperity Bancshares from $73.00 to $80.00 and gave the company a “buy” rating in a report on Friday, July 26th. DA Davidson cut shares of Prosperity Bancshares from a “buy” rating to a “neutral” rating and reduced their target price for the stock from $80.00 to $78.00 in a report on Tuesday. Finally, Royal Bank of Canada upped their price target 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. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating and nine have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $77.27.

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.