Zacks Investment Research downgraded shares of Texas Capital Bancshares (NASDAQ:TCBI) from a hold rating to a sell rating in a research report report published on Wednesday.
According to Zacks, “Shares of Texas Capital have underperformed the industry over the past three 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. Further, the company's strong capital position remains a tailwind. 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.”
A number of other analysts have also recently issued reports on TCBI. Piper Jaffray Companies reissued a buy rating and issued a $117.00 price objective on shares of Texas Capital Bancshares in a research note on Friday, July 20th. BidaskClub raised shares of Texas Capital Bancshares from a strong sell rating to a sell rating in a research note on Saturday, July 21st. Wedbush increased their price objective on shares of Texas Capital Bancshares from $109.00 to $110.00 and gave the stock a $96.20 rating in a research note on Thursday, July 19th. Sandler O’Neill reissued a hold rating and issued a $103.00 price objective on shares of Texas Capital Bancshares in a research note on Friday, July 20th. Finally, Jefferies Financial Group reissued a buy rating and issued a $105.00 price objective on shares of Texas Capital Bancshares in a research note on Friday, July 20th. Four research analysts have rated the stock with a sell rating, seven have assigned a hold rating and six have given a buy rating to the company’s stock. The stock currently has an average rating of Hold and an average price target of $106.00.
TCBI stock traded down $2.13 during midday trading on Wednesday, reaching $76.30. 557,347 shares of the company’s stock traded hands, compared to its average volume of 535,286. Texas Capital Bancshares has a 52-week low of $74.22 and a 52-week high of $103.05. The stock has a market cap of $4.15 billion, a P/E ratio of 18.70, a P/E/G ratio of 1.19 and a beta of 1.78. 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 (NASDAQ:TCBI) last announced its earnings results on Wednesday, July 18th. The bank reported $1.38 EPS 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 business had revenue of $248.99 million for the quarter, compared to analysts’ expectations of $242.58 million. During the same period in the prior year, the company posted $0.97 earnings per share. As a group, equities analysts forecast that Texas Capital Bancshares will post 6.12 earnings per share for the current year.
In related news, Director Ian J. Turpin sold 5,320 shares of the firm’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 transaction, the director now directly owns 8,602 shares of the company’s stock, valued at $800,502.12. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.48% of the company’s stock.
A number of hedge funds have recently added to or reduced their stakes in TCBI. Hsbc Holdings PLC lifted its position in Texas Capital Bancshares by 44.7% during the first quarter. Hsbc Holdings PLC now owns 7,257 shares of the bank’s stock valued at $653,000 after purchasing an additional 2,242 shares during the last quarter. Koch Industries Inc. bought a new position in Texas Capital Bancshares during the first quarter valued at $342,000. Principal Financial Group Inc. lifted its position in Texas Capital Bancshares by 2.5% during the first quarter. Principal Financial Group Inc. now owns 215,393 shares of the bank’s stock valued at $19,363,000 after purchasing an additional 5,306 shares during the last quarter. Profund Advisors LLC lifted its position in Texas Capital Bancshares by 9.5% during the first quarter. Profund Advisors LLC now owns 10,280 shares of the bank’s stock valued at $924,000 after purchasing an additional 891 shares during the last quarter. Finally, Commonwealth Equity Services LLC bought a new position in Texas Capital Bancshares during the first quarter valued at $222,000.
Texas Capital Bancshares Company Profile
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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