Zacks Investment Research lowered shares of Texas Capital Bancshares (NASDAQ:TCBI) from a hold rating to a sell rating in a research note released on Thursday, Zacks.com reports. The brokerage currently has $60.00 price objective on the bank’s stock.
According to Zacks, “Shares of Texas Capital have underperformed the industry over the past six months. Also, the company has a disappointing earnings surprise history, having beaten the Zacks Consensus Estimate in only one of the trailing four quarters. Texas Capital’s persistently rising expenses, due to hiring of experienced bankers and expand its presence, is likely to impede bottom-line growth. Also, deterioration of credit quality and lack of geographical diversification remain headwinds. Further, significant exposure to commercial and real estate loans keeps us apprehesive. However, growth in revenues, supported by favorable interest rates, is a tailwind. Additionally, rising loans and deposits balance, backed by a gain in market share depicts a strong capital position which would help the company undertake opportunistic expansions in the long haul.”
A number of other equities research analysts have also recently issued reports on TCBI. UBS Group cut shares of Texas Capital Bancshares from a neutral rating to a sell rating and decreased their price objective for the stock from $62.00 to $52.00 in a report on Monday, August 5th. Piper Jaffray Companies cut shares of Texas Capital Bancshares from an overweight rating to a neutral rating and decreased their price objective for the stock from $71.50 to $64.50 in a report on Friday, June 7th. ValuEngine upgraded shares of Texas Capital Bancshares from a sell rating to a hold rating in a report on Thursday, August 1st. SunTrust Banks cut shares of Texas Capital Bancshares from a buy rating to a hold rating and decreased their price objective for the stock from $72.00 to $63.00 in a report on Thursday, July 18th. Finally, BidaskClub upgraded shares of Texas Capital Bancshares from a strong sell rating to a sell rating in a report on Thursday, September 12th. Three research analysts have rated the stock with a sell rating, ten have issued a hold rating and two have given a buy rating to the company’s stock. The stock presently has a consensus rating of Hold and a consensus target price of $64.70.
NASDAQ TCBI opened at $55.68 on Thursday. Texas Capital Bancshares has a 1-year low of $47.86 and a 1-year high of $89.45. The company has a current ratio of 1.26, a quick ratio of 1.21 and a debt-to-equity ratio of 1.39. The company has a market capitalization of $2.81 billion, a PE ratio of 9.62, a price-to-earnings-growth ratio of 0.91 and a beta of 1.84. The firm’s fifty day simple moving average is $55.10 and its 200-day simple moving average is $58.86.
Texas Capital Bancshares (NASDAQ:TCBI) last posted its quarterly earnings results on Wednesday, July 17th. The bank reported $1.50 earnings per share for the quarter, missing the Zacks’ consensus estimate of $1.53 by ($0.03). Texas Capital Bancshares had a return on equity of 13.29% and a net margin of 22.88%. The company had revenue of $267.92 million during the quarter, compared to analyst estimates of $267.15 million. During the same period last year, the company posted $1.38 earnings per share. As a group, analysts predict that Texas Capital Bancshares will post 5.94 EPS for the current year.
Hedge funds have recently added to or reduced their stakes in the business. Manchester Capital Management LLC bought a new stake in Texas Capital Bancshares during the first quarter valued at about $34,000. Savant Capital LLC bought a new stake in Texas Capital Bancshares during the second quarter valued at about $63,000. Tower Research Capital LLC TRC boosted its holdings in Texas Capital Bancshares by 1,637.5% during the second quarter. Tower Research Capital LLC TRC now owns 1,251 shares of the bank’s stock valued at $76,000 after acquiring an additional 1,179 shares during the period. Acadian Asset Management LLC bought a new stake in Texas Capital Bancshares during the second quarter valued at about $87,000. Finally, Kavar Capital Partners LLC bought a new stake in Texas Capital Bancshares during the second quarter valued at about $123,000. Institutional investors own 95.37% of the company’s stock.
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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