Prosperity Story

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PB -- USA Stock  

USD 73.54  0.64  0.86%

It appears Prosperity Bancshares may not recover as fast as we have hopped for as its price went down 0.71% today. The entity current daily volatility is 2.61 percent, with a beta of 0.29 and an alpha of 0.33 over DOW. Whilst many millenniums are getting more into investing against high market volatility, it is quite pruden to go over Prosperity Bancshares based on its historical prices. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over a month ago
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Breaking down Prosperity Bancshares (NYSE:PB) volatility slip
Prosperity Bancshares reports roughly 1.09 B in cash with 550.71 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 11.75. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Prosperity Bancshares has an asset utilization ratio of 5.04 percent. This suggests that the company is making $0.0504 for each dollar of assets. An increasing asset utilization means that Prosperity Bancshares is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in Prosperity Bancshares, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Prosperity Bancshares along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Prosperity Bancshares' stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Prosperity Bancshares in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Prosperity Bancshares. Your research has to be compared to or analyzed against Prosperity Bancshares' peers to derive any actionable benefits. When done correctly, Prosperity Bancshares' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Prosperity Bancshares.

How important is Prosperity Bancshares's Liquidity

Prosperity Bancshares financial leverage refers to using borrowed capital as a funding source to finance Prosperity Bancshares ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Prosperity Bancshares financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Prosperity Bancshares's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Prosperity Bancshares, but it might be worth checking our own buy vs. sell analysis

Prosperity Bancshares Correlation with Peers

Investors in Prosperity can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Prosperity Bancshares. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Prosperity Bancshares and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Prosperity is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Prosperity for more details

Prosperity Bancshares exotic insider transaction detected

Legal trades by Prosperity Bancshares insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Prosperity insider trading alert for general transaction of common stock by Robert Dowdell, Executive Vice President, on 20th of January 2021. This event was filed by Prosperity Bancshares Inc with SEC on 2021-01-20. Statement of changes in beneficial ownership - SEC Form 4. Robert Dowdell currently serves as executive vice president of the company and the bank of Prosperity Bancshares [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Going after Prosperity Financials

Prosperity Bancshares appears to be very steady, given 1 month investment horizon. Prosperity Bancshares maintains Sharpe Ratio (i.e. Efficiency) of 0.18, which implies the firm had 0.18% of return per unit of risk over the last month. Our standpoint towards forecasting the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Prosperity Bancshares, which you can use to evaluate future volatility of the company. Please employ Prosperity Bancshares Coefficient Of Variation of 676.54, risk adjusted performance of 0.1482, and Semi Deviation of 1.91 to confirm if our risk estimates are consistent with your expectations.
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Prosperity Bancshares has 72 percent chance to finish below $68 next week

Prosperity Bancshares current treynor ratio builds up over 1.32. Prosperity Bancshares currently demonstrates below-verage downside deviation. It has Information Ratio of 0.07 and Jensen Alpha of 0.33. However, we do advice investors to further question Prosperity Bancshares expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Bottom Line On Prosperity Bancshares

Whereas many of the other players within the banks?regional industry are still a little expensive, even after the recent corrections, Prosperity Bancshares may offer a potential longer-term growth to investors. The inconsistency in the assessment between current Prosperity valuation and our trade advice on Prosperity Bancshares is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Prosperity Bancshares.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Prosperity Bancshares. Please refer to our Terms of Use for any information regarding our disclosure principles.

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