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Ned S. Holmes, a director at Prosperity Bancshares Inc . (NYSE:PB), a $7.69 billion regional bank with a "GOOD" financial health rating according to InvestingPro, recently sold shares of the company’s common stock, according to a filing with the Securities and Exchange Commission. On January 29, 2025, Holmes executed multiple transactions, selling a total of $87,886 worth of stock. The shares were sold at prices ranging from $76.17 to $82.55 per share.
Holmes’ transactions were conducted through various ownership structures, including direct ownership, a profit-sharing plan, and as a trustee for family trusts. Following these sales, Holmes retains direct ownership of 107,815 shares. Additionally, he holds shares indirectly through several trusts and a limited partnership. The company maintains a strong dividend track record, having raised dividends for 17 consecutive years, with a current yield of 2.92%.
These transactions were executed under a Rule 10b5-1 trading plan, which allows insiders to set up a predetermined plan to sell shares, mitigating concerns about insider trading. Trading at 1.03 times book value, analysis from InvestingPro suggests the stock may be undervalued, with additional insights available in the comprehensive Pro Research Report covering this top regional bank.
In other recent news, Prosperity Bancshares has been the focus of several significant developments. The company reported a net income of $127 million in Q3 2024, an increase from last year’s $112 million. Additionally, the bank has raised its dividend to $0.58 per share for Q4 2024, indicating steady financial performance.
Prosperity Bancshares has also launched a stock buyback plan, authorizing the repurchase of up to 5% of its outstanding common stock over the next year. In another strategic move, the firm updated its executive compensation terms, specifically modifying terms for Chairman H.E. Timanus, Jr. in the event of a change in company control.
Analyst firm Stephens has raised its target for Prosperity Bancshares to $94, maintaining an Overweight rating. This decision is based on a positive forecast of 9% year-over-year NII growth for 2025, despite an expected 2% decline in average earning assets. Meanwhile, BofA Securities analyst Ebrahim Poonawala has upgraded the company’s stock from Underperform to Neutral, citing a favorable economic climate for bank mergers and acquisitions, as well as high interest rates.
Prosperity Bancshares is also targeting a net interest margin of 3% by the end of 2024, with projections increasing to 3.27% for 2025, and 3.65% for 2026. Despite a revenue drop, the company’s net interest margin improved and its warehouse lending business remains robust. These are all recent developments in Prosperity Bancshares’ operations.
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