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PB: Share Buyback Program And Dividend Hike Will Drive Long-Term Upside

Update shared on 05 Nov 2025

Fair value Decreased 0.51%
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AnalystConsensusTarget's Fair Value
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1Y
-18.6%
7D
0.6%

Prosperity Bancshares' analyst price target was modestly lowered from $79.07 to $78.67, as analysts cited adjustments to underlying growth and profitability assumptions in their models.

What's in the News

  • Between July 1, 2025 and September 30, 2025, Prosperity Bancshares completed a share buyback, repurchasing 299,318 shares for $19.94 million. This represents 0.31% of shares (Key Developments).
  • The Board of Directors declared a fourth-quarter 2025 dividend of $0.60 per share, an increase of $0.02 or 3.45% from the previous quarter. The dividend is payable January 2, 2026, to shareholders of record as of December 15, 2025 (Key Developments).
  • Net charge-offs for the third quarter ended September 30, 2025, totaled $6.5 million. This is up from $3.0 million in the previous quarter and $5.5 million in the third quarter of 2024 (Key Developments).
  • No shares were repurchased by the company from April 1, 2025 to June 30, 2025 under the current buyback plan (Key Developments).

Valuation Changes

  • Fair Value: Declined slightly from $79.07 to $78.67.
  • Discount Rate: Fell modestly from 6.97% to 6.78%.
  • Revenue Growth: Increased from 11.84% to 12.51%.
  • Net Profit Margin: Decreased from 43.27% to 40.81%.
  • Future P/E increased from 12.24x to 12.50x.

Disclaimer

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