Zacks Investment Research upgraded shares of Texas Capital Bancshares (NASDAQ:TCBI) from a hold rating to a buy rating in a report released on Monday morning. They currently have $99.00 price objective on the bank’s stock.
According to Zacks, “Shares of Texas Capital have underperformed the industry over the past six months. However, the company possesses an impressive earnings surprise history, beating the Zacks Consensus Estimate in three of the trailing four quarters. The company’s diversified fee income sources are likely to continue driving its top-line growth. Also, Texas Capital’s margins have improved to some extent, following consecutive rate hikes. Despite that, persistently increasing expenses, mainly due to hiring of experienced bankers, is likely to impede bottom-line growth to some extent. Also, lack of diversification remains a headwind for Texas Capital. Nevertheless, the company's strong capital position remains a tailwind.”
A number of other research firms have also recently weighed in on TCBI. BidaskClub upgraded shares of Texas Capital Bancshares from a sell rating to a hold rating in a research report on Friday, June 8th. ValuEngine raised shares of Texas Capital Bancshares from a hold rating to a buy rating in a research note on Saturday, May 12th. SunTrust Banks reissued a buy rating on shares of Texas Capital Bancshares in a research note on Friday, July 20th. Stephens reissued a hold rating and set a $105.00 target price on shares of Texas Capital Bancshares in a research note on Monday, June 18th. Finally, Sandler O’Neill reissued a hold rating and set a $103.00 target price on shares of Texas Capital Bancshares in a research note on Friday, July 20th. Two investment analysts have rated the stock with a sell rating, eight have issued a hold rating and seven have given a buy rating to the company’s stock. The stock presently has a consensus rating of Hold and an average price target of $106.47.
TCBI stock opened at $89.65 on Monday. The company has a current ratio of 1.32, a quick ratio of 1.26 and a debt-to-equity ratio of 2.00. Texas Capital Bancshares has a twelve month low of $69.65 and a twelve month high of $103.05. The firm has a market cap of $4.46 billion, a price-to-earnings ratio of 22.23, a PEG ratio of 1.28 and a beta of 1.76.
Texas Capital Bancshares (NASDAQ:TCBI) last posted its quarterly earnings data on Wednesday, July 18th. The bank reported $1.38 earnings per share for the quarter, missing the Zacks’ consensus estimate of $1.39 by ($0.01). Texas Capital Bancshares had a net margin of 22.15% and a return on equity of 12.51%. The firm had revenue of $248.99 million for the quarter, compared to the consensus estimate of $242.58 million. During the same quarter last year, the firm earned $0.97 EPS. analysts anticipate that Texas Capital Bancshares will post 6.12 EPS for the current fiscal year.
In other news, Director Ian J. Turpin sold 5,320 shares of the business’s stock in a transaction on Friday, August 24th. The shares were sold at an average price of $93.06, for a total transaction of $495,079.20. Following the completion of the sale, the director now directly owns 8,602 shares of the company’s stock, valued at $800,502.12. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.48% of the stock is currently owned by insiders.
Several institutional investors and hedge funds have recently modified their holdings of the company. Point72 Asset Management L.P. purchased a new stake in Texas Capital Bancshares in the second quarter worth about $119,000. Hodges Capital Management Inc. purchased a new stake in Texas Capital Bancshares in the first quarter worth about $200,000. Commonwealth Equity Services LLC purchased a new stake in Texas Capital Bancshares in the first quarter worth about $222,000. Sentry Investments Corp. purchased a new stake in Texas Capital Bancshares in the first quarter worth about $224,000. Finally, WINTON GROUP Ltd purchased a new stake in Texas Capital Bancshares in the first quarter worth about $250,000.
About Texas Capital Bancshares
Texas Capital Bancshares, Inc operates as the bank holding company for Texas Capital Bank, National Association that provides various banking products and services for commercial businesses, and professionals and entrepreneurs. It offers business deposit products and services, including commercial checking accounts, lockbox accounts, and cash concentration accounts, as well as other treasury management services, including information services, wire transfer initiation, ACH initiation, account transfer, and service integration; and consumer deposit products, such as checking accounts, savings accounts, money market accounts, and certificates of deposit.
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