Stellar Bancorp's Merger with Prosperity Bancshares Drives Stock Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 28 2026
0mins
Should l Buy STEL?
Source: Benzinga
Stellar Bancorp Inc. saw its stock price rise by 11.43% as it crossed above the 5-day SMA, reflecting positive investor sentiment following the announcement of its merger with Prosperity Bancshares.
The merger agreement, valued at approximately $2 billion, involves Prosperity acquiring Stellar for $11.36 in cash and 0.3803 shares of Prosperity stock per Stellar share. This deal is expected to close in Q2 2026 and positions Prosperity as the second-largest bank in Texas, enhancing its competitive edge in the region. The leadership transition will see Stellar's CEO and President take on significant roles in Prosperity, ensuring continuity in management.
This merger not only strengthens Prosperity's market position but also reflects a strategic move to capitalize on growth opportunities in Texas. Investors are optimistic about the potential for increased market share and enhanced service capabilities in the Houston area.
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Analyst Views on STEL
Wall Street analysts forecast STEL stock price to fall
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 38.740
Low
32.00
Averages
32.50
High
33.00
Current: 38.740
Low
32.00
Averages
32.50
High
33.00
About STEL
Stellar Bancorp, Inc. is a bank holding company. Through its wholly owned subsidiary, Stellar Bank (the Bank), the Company provides a diversified range of commercial banking services primarily to small-to-medium-sized businesses, professionals and individual customers within its markets. The Company offers a range of commercial and retail lending services, including commercial loans, loans to small businesses guaranteed by the small business administration (the SBA), mortgage loans, home equity loans, personal loans and automobile loans, among others. The types of deposit accounts that the Company offers are typical of most commercial banks and consist of checking accounts, commercial accounts, money market accounts, savings accounts and other time deposits of various types and terms. The Company operates over 54 full-service banking centers, with 37 banking centers in the Houston region, 16 banking centers in the Beaumont region and one banking center in Dallas, Texas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Shareholder Rights: The transaction involving Stellar Bancorp, Inc. (NYSE: STEL) and Prosperity Bancshares, Inc. includes 0.3803 shares of Prosperity common stock and $11.36 in cash per share of Stellar common stock, prompting Halper Sadeh LLC to remind shareholders of their legal rights.
- Merger Transaction: Devon Energy Corporation (NYSE: DVN) is merging with Coterra Energy Inc., resulting in Devon shareholders owning approximately 54% of the combined entity, with Halper Sadeh LLC potentially seeking increased compensation for shareholders.
- Legal Support: Halper Sadeh LLC offers risk-free legal consultations, allowing shareholders to explore their rights and options without incurring costs, aiming to protect investors from securities fraud and corporate misconduct.
See More
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- Investigation Focus: Halper Sadeh LLC is investigating Silicon Laboratories Inc. (NASDAQ: SLAB) regarding its sale to Texas Instruments for $231.00 per share, which may impact shareholder rights.
- Merger Details: Devon Energy Corporation (NYSE: DVN) is merging with Coterra Energy Inc., resulting in Devon shareholders owning approximately 54% of the combined entity, potentially affecting shareholder decision-making.
- Shareholder Rights Protection: Halper Sadeh LLC encourages shareholders to consult about their rights and options at no cost, highlighting the firm's commitment to protecting shareholder interests.
- Legal Service Commitment: The law firm operates on a contingent fee basis, ensuring shareholders do not incur upfront legal costs, thereby enhancing legal protections for investors.
See More
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- Merger Investigation: Halper Sadeh LLC is investigating the merger between Devon Energy Corporation and Coterra Energy Inc., where Devon shareholders are expected to own approximately 54% of the combined entity, potentially impacting shareholder rights and future returns.
- Shareholder Rights Protection: The firm encourages Stellar Bancorp, Inc. shareholders to pay attention to its sale to Prosperity Bancshares, Inc., which includes 0.3803 shares of Prosperity stock and $11.36 in cash per share of Stellar common stock, potentially affecting financial interests.
- Legal Consultation Services: Halper Sadeh LLC offers no-cost legal consultations to help shareholders understand their rights and options, ensuring that shareholder interests are protected during the merger process, reflecting a commitment to investor rights.
- Global Investor Support: The firm represents investors worldwide, striving for increased consideration and transparency in transactions, having successfully recovered millions for defrauded investors in the past, showcasing its expertise in securities fraud and corporate misconduct.
See More
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- Merger Investigation: Halper Sadeh LLC is investigating the merger between Devon Energy Corporation and Coterra Energy Inc., where Devon shareholders are expected to own approximately 54% of the combined entity, potentially impacting shareholder rights and future earnings.
- Shareholder Rights Protection: The law firm encourages shareholders to reach out to discuss their rights and options, promising to handle matters on a contingent fee basis, aiming to provide legal support and potential compensation for affected shareholders.
- Other Merger Cases: The investigation also includes the sale of Stellar Bancorp, Inc. to Prosperity Bancshares, Inc., where shareholders will receive 0.3803 shares of Prosperity common stock and $11.36 in cash per share, with terms that may limit superior competing offers.
- Potential Legal Actions: Halper Sadeh LLC may seek increased consideration, additional disclosures, or other relief on behalf of shareholders, demonstrating a commitment to protecting shareholder interests and ongoing corporate governance oversight.
See More
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- Investigation Focus: Halper Sadeh LLC is investigating Stellar Bancorp, Inc. (NYSE: STEL) regarding its sale to Prosperity Bancshares, Inc., which involves a price of 0.3803 shares of Prosperity common stock and $11.36 in cash per share of Stellar common stock, potentially indicating breaches of fiduciary duties to shareholders.
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- Acquisition Deal: SkyWater Technology, Inc. (NASDAQ: SKYT) is being sold for $15.00 in cash and $20.00 in IonQ common stock, with Halper Sadeh LLC potentially seeking increased compensation for shareholders, highlighting the importance of fair valuation in corporate transactions.
- Legal Support: Halper Sadeh LLC offers legal services on a contingency fee basis, encouraging shareholders to reach out to discuss their legal rights and options, demonstrating a commitment to protecting investor interests.
See More
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- Skywater Technology Deal: Monteverde Law Firm is investigating the transaction between Skywater Technology and IonQ, where Skywater shareholders are expected to receive $15.00 per share in cash and $20.00 in IonQ common stock, potentially providing significant returns for shareholders.
- Community West Merger: In the merger between Community West Bancshares and United Security Bancshares, United Security shareholders are expected to receive 0.4520 shares of Community West common stock for each share they hold, indicating an increase in shareholder value through the merger.
- Stellar Bancorp Sale: In the transaction involving Stellar Bancorp and Prosperity Bancshares, Stellar shareholders are expected to receive 0.3803 shares of Prosperity common stock and $11.36 in cash per share, further enhancing the financial benefits for shareholders.
- Ventyx Biosciences Transaction: In the deal with Eli Lilly, Ventyx shareholders are expected to receive $14.00 in cash per share, with a shareholder vote scheduled for March 3, 2026, highlighting the urgency and potential profitability of the transaction.
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