PB Should I Buy
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Prosperity Bancshares, Inc (PB) is not a strong buy for a beginner investor with a long-term focus at this time. The lack of positive short-term trading signals, combined with mixed analyst sentiment, insider selling, and skepticism around its acquisition strategy, suggests that waiting for a clearer entry point or more favorable conditions may be prudent.
The technical indicators are mixed. While the moving averages are bullish (SMA_5 > SMA_20 > SMA_200), the MACD is negatively expanding, and the RSI is neutral at 45.455. The pre-market price of $72.86 is near the S1 support level of $72.572, indicating limited immediate upside potential.
The company reported strong financials for Q4 2025, with revenue up 3.51% YoY, net income up 7.56% YoY, and EPS up 8.76% YoY. These indicate solid operational performance.
Hedge funds and insiders are selling heavily, with insider selling up 495.39% over the last month. Analysts have downgraded the stock due to skepticism around the acquisition of Stellar Bancorp, citing long earn-back periods and concerns about near-term performance. The stock has a 70% chance to decline by -6.18% over the next month.
In Q4 2025, Prosperity Bancshares showed positive growth trends: Revenue increased by 3.51% YoY to $310.05 million, Net Income increased by 7.56% YoY to $139.91 million, and EPS grew by 8.76% YoY to $1.49. However, gross margin remained unchanged at 0%.
Analyst sentiment is mixed to negative. Multiple firms, including Barclays, Piper Sandler, and Raymond James, have downgraded the stock, citing concerns about the Stellar Bancorp acquisition and its long-term impact. Price targets have been revised downward, with the latest targets ranging from $68 to $77.
