Raymond James Downgrades Stellar Bancorp to Market Perform
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 29 2026
0mins
Should l Buy STEL?
Raymond James analyst David Feaster downgraded Stellar Bancorp (STEL) to Market Perform from Outperform without a price target. The firm cites the pending merger with Prosperity Bancshares (PB) for the downgrade. The merits of the deal are positive from both a cultural and financial standpoint, but Prosperity's risk/reward dynamic is balanced for now given the integration of three deals, the analyst tells investors in a research note. The firm aligned its rating on Stellar with Prosperity.
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Analyst Views on STEL
Wall Street analysts forecast STEL stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for STEL is 32.50 USD with a low forecast of 32.00 USD and a high forecast of 33.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 38.700
Low
32.00
Averages
32.50
High
33.00
Current: 38.700
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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- 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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- 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.
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- Shareholder Rights Protection: The sale of Ventyx Biosciences, Inc. (NASDAQ: VTYX) to Eli Lilly and Company for $14.00 per share is similarly scrutinized, with Halper Sadeh LLC encouraging shareholders to reach out to understand their legal rights and options.
- Legal Service Model: Halper Sadeh LLC operates on a contingent fee basis, allowing shareholders to seek legal remedies and potential compensation without upfront costs, demonstrating the firm's commitment to protecting investor rights.
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- Transaction Details: In the deal between Gold Resource Corporation and Goldgroup Mining, Gold Resource shareholders will convert their shares into 1.4476 common shares of Goldgroup, demonstrating a commitment to shareholder interests.
- Cash and Stock Combination: For the Stellar Bancorp and Prosperity Bancshares transaction, Stellar shareholders are expected to receive 0.3803 shares of Prosperity common stock and $11.36 in cash per share, reflecting the company's strategy to reward shareholders.
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- Investigation Focus: Halper Sadeh LLC is investigating Stellar Bancorp, Inc. (NYSE: STEL) for potential violations of federal securities laws related to its sale to Prosperity Bancshares, Inc. for 0.3803 shares of Prosperity common stock and $11.36 in cash per share, which may adversely affect shareholder rights.
- Shareholder Rights Protection: Gold Resource Corporation (NYSE American: GORO) is selling to Goldgroup Mining Inc. for 1.4476 shares of Goldgroup common stock, and Halper Sadeh LLC may seek increased consideration and additional disclosures to safeguard shareholder interests in this transaction.
- SkyWater Transaction Review: SkyWater Technology, Inc. (NASDAQ: SKYT) is being sold for $15.00 in cash and $20.00 in IonQ common stock, prompting Halper Sadeh LLC to assess the implications of this deal on shareholders and potentially pursue legal action to protect their interests.
- Legal Service Commitment: Halper Sadeh LLC offers legal services on a contingency fee basis, encouraging shareholders to consult for free about their legal rights and options, aiming to support defrauded investors and seek compensation.
See More
Halper Sadeh LLC Investigates Multiple Companies for Potential Violations
- 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.
- Merger Implications: Upon completion of the merger between Community West Bancshares (NASDAQ: CWBC) and United Security Bancshares, Community West shareholders would own approximately 70.6% of the combined company, which could significantly impact shareholder rights and corporate governance structures.
- 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
Monteverde Law Firm Investigates Multiple Mergers and Acquisitions
- 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.
See More
Investor Rights Investigation: Multiple Company Transactions
- Legal Investigation Launched: Halper Sadeh LLC is investigating Stellar Bancorp, Inc. (NYSE:STEL) for its sale to Prosperity Bancshares, Inc., which involves 0.3803 shares of Prosperity common stock and $11.36 in cash per share, potentially indicating breaches of fiduciary duties affecting shareholder rights.
- Shareholder Rights Protection: The transaction between Gold Resource Corporation (NYSE American: GORO) and Goldgroup Mining Inc. involves 1.4476 shares of Goldgroup common stock per share, with Halper Sadeh LLC potentially seeking increased compensation and additional disclosures to safeguard shareholder interests.
- SkyWater Transaction Review: SkyWater Technology, Inc. (NASDAQ:SKYT) is involved in a sale to IonQ for $15.00 in cash and $20.00 in IonQ common stock, prompting Halper Sadeh LLC to assess whether this transaction aligns with shareholder best interests.
- Ventyx Transaction Investigation: Ventyx Biosciences, Inc. (NASDAQ:VTYX) is selling to Eli Lilly and Company for $14.00 per share, and Halper Sadeh LLC encourages shareholders to reach out to discuss their legal rights and options to ensure their interests are protected.
See More
Halper Sadeh LLC Investigates Multiple Companies for Potential Violations
- Investigation Focus: Halper Sadeh LLC is investigating Stellar Bancorp, Inc. (NYSE: STEL) regarding its sale to Prosperity Bancshares, Inc. for 0.3803 shares of Prosperity common stock and $11.36 in cash per share, potentially indicating breaches of fiduciary duties to shareholders.
- Merger Scrutiny: The merger between Columbia Financial, Inc. (NASDAQ: CLBK) and Northfield Bancorp, Inc. is also under investigation, with Halper Sadeh LLC possibly seeking increased compensation and additional disclosures to protect shareholder interests.
- Shareholder Rights Protection: The sale of Ventyx Biosciences, Inc. (NASDAQ: VTYX) to Eli Lilly and Company for $14.00 per share is similarly scrutinized, with Halper Sadeh LLC encouraging shareholders to reach out to understand their legal rights and options.
- Legal Service Model: Halper Sadeh LLC operates on a contingent fee basis, allowing shareholders to seek legal remedies and potential compensation without upfront costs, demonstrating the firm's commitment to protecting investor rights.
See More
Monteverde Law Firm Investigates Multiple M&A Transactions
- Shareholder Protection: Monteverde Law Firm is investigating the transaction between Skywater Technology and IonQ, where Skywater shareholders are expected to receive $15.00 in cash and $20.00 in IonQ stock per share, aiming to ensure fair compensation for shareholders.
- Transaction Details: In the deal between Gold Resource Corporation and Goldgroup Mining, Gold Resource shareholders will convert their shares into 1.4476 common shares of Goldgroup, demonstrating a commitment to shareholder interests.
- Cash and Stock Combination: For the Stellar Bancorp and Prosperity Bancshares transaction, Stellar shareholders are expected to receive 0.3803 shares of Prosperity common stock and $11.36 in cash per share, reflecting the company's strategy to reward shareholders.
- Upcoming Vote: In the transaction involving Ventyx Biosciences and 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 importance of shareholder involvement in the transaction.
See More
Investor Rights Law Firm Investigates Multiple Companies
- Investigation Focus: Halper Sadeh LLC is investigating Stellar Bancorp, Inc. (NYSE: STEL) for potential violations of federal securities laws related to its sale to Prosperity Bancshares, Inc. for 0.3803 shares of Prosperity common stock and $11.36 in cash per share, which may adversely affect shareholder rights.
- Shareholder Rights Protection: Gold Resource Corporation (NYSE American: GORO) is selling to Goldgroup Mining Inc. for 1.4476 shares of Goldgroup common stock, and Halper Sadeh LLC may seek increased consideration and additional disclosures to safeguard shareholder interests in this transaction.
- SkyWater Transaction Review: SkyWater Technology, Inc. (NASDAQ: SKYT) is being sold for $15.00 in cash and $20.00 in IonQ common stock, prompting Halper Sadeh LLC to assess the implications of this deal on shareholders and potentially pursue legal action to protect their interests.
- Legal Service Commitment: Halper Sadeh LLC offers legal services on a contingency fee basis, encouraging shareholders to consult for free about their legal rights and options, aiming to support defrauded investors and seek compensation.
See More
