Fintel reports that on September 28, 2023, UBS initiated coverage of Prosperity Bancshares (NYSE:PB) with a Buy recommendation.
Analyst Price Forecast Suggests 27.77% Upside
As of August 31, 2023, the average one-year price target for Prosperity Bancshares is 68.78. The forecasts range from a low of 57.57 to a high of $77.70. The average price target represents an increase of 27.77% from its latest reported closing price of 53.83.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Prosperity Bancshares is 1,365MM, an increase of 20.95%. The projected annual non-GAAP EPS is 6.40.
Prosperity Bancshares Declares $0.55 Dividend
On July 19, 2023 the company declared a regular quarterly dividend of $0.55 per share ($2.20 annualized). Shareholders of record as of September 15, 2023 will receive the payment on October 2, 2023. Previously, the company paid $0.55 per share.
At the current share price of $53.83 / share, the stock's dividend yield is 4.09%.
Looking back five years and taking a sample every week, the average dividend yield has been 2.90%, the lowest has been 2.03%, and the highest has been 4.27%. The standard deviation of yields is 0.45 (n=235).
The current dividend yield is 2.64 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.42. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.20%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 694 funds or institutions reporting positions in Prosperity Bancshares. This is a decrease of 58 owner(s) or 7.71% in the last quarter. Average portfolio weight of all funds dedicated to PB is 0.22%, a decrease of 9.38%. Total shares owned by institutions increased in the last three months by 0.18% to 93,762K shares. 
The put/call ratio of PB is 4.77, indicating a bearish outlook.
What are Other Shareholders Doing?
Victory Capital Management holds 6,106K shares representing 6.52% ownership of the company. In it's prior filing, the firm reported owning 5,754K shares, representing an increase of 5.77%. The firm decreased its portfolio allocation in PB by 5.01% over the last quarter.
SDY - SPDR(R) S&P(R) Dividend ETF holds 3,978K shares representing 4.24% ownership of the company. In it's prior filing, the firm reported owning 3,442K shares, representing an increase of 13.49%. The firm increased its portfolio allocation in PB by 9.76% over the last quarter.
VETAX - Victory Sycamore Established Value Fund holds 3,832K shares representing 4.09% ownership of the company. In it's prior filing, the firm reported owning 3,555K shares, representing an increase of 7.23%. The firm decreased its portfolio allocation in PB by 3.75% over the last quarter.
IJH - iShares Core S&P Mid-Cap ETF holds 2,860K shares representing 3.05% ownership of the company. In it's prior filing, the firm reported owning 2,817K shares, representing an increase of 1.50%. The firm decreased its portfolio allocation in PB by 10.72% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 2,848K shares representing 3.04% ownership of the company. In it's prior filing, the firm reported owning 2,677K shares, representing an increase of 6.00%. The firm decreased its portfolio allocation in PB by 9.89% over the last quarter.
Prosperity Bancshares Background Information
(This description is provided by the company.)
As of June 30, 2019, Prosperity Bancshares, Inc.® is a $22.4 billion Houston, Texas based regional financial holding company, formed in 1983. Operating under a community banking philosophy and seeking to develop broad customer relationships based on service convenience, Prosperity offers a variety of traditional loan and deposit products to its customers, which consist primarily of small and medium sized businesses and consumers. In addition to established banking products, Prosperity offers a complete line of financial services including Online & Mobile Banking, Investment Services, Small Business (SBA) and Commercial Loans, Mortgage Services, Retail Brokerage Services, Cash Management, as well as traditional consumer services.
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