Ned S. Holmes, a director at Prosperity Bancshares Inc . (NYSE:PB), recently sold shares of the company's common stock, according to a filing with the Securities and Exchange Commission. On January 22, Holmes sold a total of 1,100 shares, resulting in proceeds of approximately $86,895. The shares were sold at prices ranging from $78.7258 to $79.346 per share. According to InvestingPro data, the $7.5 billion market cap bank currently shows a "GOOD" overall financial health score, with the stock trading below its Fair Value.
Following these transactions, Holmes retains direct ownership of 108,315 shares and indirect ownership of various other holdings, including shares held in a profit-sharing plan and as a trustee for family trusts. The company has maintained dividend payments for 26 consecutive years, with a current yield of 2.94%, and investors should note that Prosperity Bancshares is scheduled to report earnings in 6 days. InvestingPro subscribers have access to additional insights and detailed analysis in the comprehensive Pro Research Report.
In other recent news, Prosperity Bancshares has reported encouraging financial results, showing growth and stability. The company's net income rose to $127 million in Q3 2024, up from the previous year's $112 million. The firm also increased its dividend to $0.58 per share for Q4 2024, from $0.56. Additionally, Prosperity Bancshares has initiated a stock repurchase program, authorizing a buyback of up to 5% of its outstanding common stock over the next year.
BofA Securities analyst Ebrahim Poonawala has upgraded Prosperity Bancshares stock from Underperform to Neutral, based on expectations of a favorable economic climate for bank mergers and acquisitions, and high interest rates. The company is targeting a net interest margin of 3% by the end of 2024, with projections rising to 3.27% for 2025, and 3.65% for 2026.
Prosperity Bancshares has also updated its executive compensation terms. The revised agreement includes terms for compensation in the event of a change in company control. If Chairman H.E. Timanus, Jr. terminates his employment for a good reason, or if the company terminates without cause within a specific timeframe around a change in control, he will be entitled to a severance payment. The company's commitment to maintaining clear and competitive compensation practices for its executive leadership is reflected in this new agreement.
Prosperity Bancshares' warehouse lending business remains robust, and the company is open to potential mergers and acquisitions. These recent developments indicate a period of growth and stability for the company.
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