Home Sectors Financial Services Long or Short: Prosperity Bancshares (NYSE: PB)

Long or Short: Prosperity Bancshares (NYSE: PB)


Prosperity Bancshares is in the banking industry and financial services sector. The company CEO is David Zalman. Prosperity Bancshares, operates as the financial holding company for Prosperity Bank. It provides range of financial products and services to small and medium-sized businesses and consumers.

Previous Intraday Trading Performance:

The PB stock showed a previous change of 3.22% with an open at 66.49 and a close of 67.75. It reached an intraday high of 67.81 and a low of 66.41.

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The stock has a market cap of $4.7b with 69.9m shares outstanding, of which the float is 65.8m shares. Trading volume reached 192,219 shares compared to its average volume of 236,298 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, Prosperity Bancshares shares returned 0.28% and in the past 30 trading days it returned -6.12%. Over three months, it changed -8.75%. In one year it has changed -6.67% and within that year its 52-week high was 76.25 and its 52-week low was 57.01. PB stock is 18.84% above its 52 Week Low.

Our calculations show a 200 day moving average of 69.49 and a 50 day moving average of 70.41. Currently PB stock is trading -2.50% below its 200 day moving average and may be a good opportunity to buy, but should check other indicators to confirm a buy signal.

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The last annual fiscal EPS for the company was reported at 4.61 that ended on 31st of December 2018, which according to the previous close, that is a PE of 14.70. Based on 8 analyst estimates, the consensus EPS for the next quarter is 1.17. The TTM EPS is 4.61, which comes to a TTM PE of 14.70. Historically, the PE high was 20.20 and the PE low was 8.20. If the stock reached its PE low, that would represent a price of 37.79, which is a decrease of -44.22%.

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 (Reported on 04/24/2019): 1.18
4thQtr of 2018 (Reported on 01/30/2019): 1.19
3rdQtr of 2018 (Reported on 10/24/2018): 1.18
2ndQtr of 2018 (Reported on 07/25/2018): 1.17
1stQtr of 2018 (Reported on 04/25/2018): 1.07

The dividend per share is currently 1.64, which is a dividend yield of 2.42%. Also, the payout ratio is 35.57%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 69.84, which means it is possibly undervalued and has a margin of safety of 2.99%.

Indicators to Watch:

Short-interest was 4,325,326, which was 6.19% of shares outstanding. The short-interest ratio or days-to-cover ratio was 11.88. This stock has a moderate level of short interest, but may still be a buying opportunity depending on other indicators.

The current calculated beta is 1.41.

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 8.63%, return on assets is 1.54%, profit margin is 39.56%, price-to-sales is 5.46 and price-to-book is 1.12.

Company Scores:

All scores are out of six:
 2  :Valuation Score
 3  :Past Performance Score
 6  :Financial Strength Score
 1  :Future Growth Score
 5  :Dividend Score
 3  :Overall Score

Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.