Zacks Investment Research lowered shares of Texas Capital Bancshares (NASDAQ:TCBI) from a strong-buy rating to a hold rating in a report released on Tuesday.
According to Zacks, “Shares of Texas Capital have outperformed the industry over the last six months. This price performance is backed by the company’s decent earnings surprise history. It surpassed the Zacks Consensus Estimate in three of the trailing four quarters. The fourth-quarter results were driven by top-line strength and lower provisions. Rise in loans and deposit balances were also recorded. The company’s diversified fee income sources should continue driving its top-line growth. Also, Texas Capital’s margins have relaxed to some extent, following consecutive rate hikes since December 2016. However, persistently increasing expenses, mainly due to hiring of experienced bankers, is likely to impede bottom-line growth. Nevertheless, the company's strong capital position remains a tailwind.”
Several other equities research analysts have also recently weighed in on the company. Wedbush raised Texas Capital Bancshares from a neutral rating to an outperform rating and reduced their price objective for the company from $108.00 to $87.00 in a research report on Thursday, December 21st. Piper Jaffray Companies reaffirmed a hold rating and issued a $98.50 target price on shares of Texas Capital Bancshares in a research report on Tuesday, January 9th. Deutsche Bank raised their target price on Texas Capital Bancshares from $93.00 to $95.00 and gave the stock a hold rating in a research report on Wednesday, November 8th. BidaskClub cut Texas Capital Bancshares from a hold rating to a sell rating in a research report on Tuesday, December 12th. Finally, Barclays raised their target price on Texas Capital Bancshares from $87.00 to $103.00 and gave the stock an equal weight rating in a research report on Tuesday, January 2nd. One analyst has rated the stock with a sell rating, nine have given a hold rating and seven have issued a buy rating to the company’s stock. The stock has an average rating of Hold and an average price target of $98.75.
Texas Capital Bancshares (NASDAQ:TCBI) last posted its quarterly earnings data on Wednesday, January 24th. The bank reported $1.19 earnings per share for the quarter, beating the consensus estimate of $1.16 by $0.03. Texas Capital Bancshares had a return on equity of 10.85% and a net margin of 20.67%. The company had revenue of $230.02 million during the quarter, compared to analysts’ expectations of $219.78 million. During the same period in the prior year, the business earned $0.96 earnings per share. sell-side analysts anticipate that Texas Capital Bancshares will post 6.07 EPS for the current fiscal year.
In other news, CEO C Keith Cargill bought 2,000 shares of Texas Capital Bancshares stock in a transaction that occurred on Tuesday, February 6th. The stock was purchased at an average cost of $90.60 per share, with a total value of $181,200.00. Following the completion of the transaction, the chief executive officer now directly owns 82,286 shares in the company, valued at $7,455,111.60. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.47% of the stock is owned by company insiders.
Institutional investors have recently added to or reduced their stakes in the business. Migdal Insurance & Financial Holdings Ltd. acquired a new position in Texas Capital Bancshares during the third quarter worth $101,000. Rehmann Capital Advisory Group acquired a new position in Texas Capital Bancshares during the third quarter worth $201,000. Signature Financial Management Inc. acquired a new position in Texas Capital Bancshares during the third quarter worth $215,000. Castleark Management LLC acquired a new position in Texas Capital Bancshares during the fourth quarter worth $222,000. Finally, Legato Capital Management LLC acquired a new position in Texas Capital Bancshares during the fourth quarter worth $227,000.
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Texas Capital Bancshares Company Profile
Texas Capital Bancshares, Inc is a bank holding and a financial holding company. The Company is the parent of Texas Capital Bank, National Association (the Bank). It offers a range of loan, deposit account and other financial products and services to its customers. It offers a range of products and services for its business customers, including commercial loans for general corporate purposes, including financing for working capital, internal growth, acquisitions and financing for business insurance premiums; medium- and long-term tax-exempt loans for municipalities and other governmental and tax-exempt entities; wealth management and trust services, and letters of credit.
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