New activity is brewing for Stellar Bancorp ( (STEL) ). The company has submitted a Form DEFM14A to the SEC, indicating an upcoming shareholder vote. This form gives shareholders all the information they need to develop an informed vote. Read on to learn more about the proposed company action.
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Stellar Bancorp has called a special shareholder meeting for May 27, 2026, to vote on its proposed merger with Prosperity Bancshares, Inc., under which Stellar will merge into Prosperity and Stellar Bank will be combined with Prosperity Bank. Under the agreed terms, Stellar shareholders will receive a mix of cash and Prosperity stock valued at roughly $37–$39 per Stellar share based on recent prices, and are expected to own about 16% of the combined company after closing.
The boards of both banks have unanimously approved the deal and Stellar’s board is urging investors to vote in favor of the merger, the related executive compensation, and a possible adjournment to secure enough proxies. The transaction, valued at about $2.0 billion, would significantly expand Prosperity’s presence in Stellar’s markets while giving Stellar investors liquidity, ongoing participation in the enlarged franchise, and statutory dissenters’ rights under Texas law if they oppose the deal.
The most recent analyst rating on (STEL) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on Stellar Bancorp stock, see the STEL Stock Forecast page.
Spark’s Take on STEL Stock
According to Spark, TipRanks’ AI Analyst, STEL is a Outperform.
The score is primarily supported by a conservatively positioned balance sheet and generally solid financial quality, reinforced by positive corporate developments (merger announcement and debt redemption). Offsetting factors include weakening 2025 earnings/revenue momentum and only mixed technical momentum (slightly negative MACD) alongside a merely average valuation and dividend yield.
To see Spark’s full report on STEL stock, click here.
More about Stellar Bancorp
Stellar Bancorp, Inc. is a Texas-based bank holding company whose primary operating subsidiary is Stellar Bank. The company focuses on providing commercial and retail banking services in the Houston market and broader Texas region, competing in a fragmented regional banking landscape dominated by mid-sized and large institutions.
Average Trading Volume: 577,242
Technical Sentiment Signal: Buy
Current Market Cap: $1.91B
See more data about STEL stock on TipRanks’ Stock Analysis page.