Texas Capital Bancshares (NASDAQ:TCBI) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors 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.”
A number of other research firms have also commented on TCBI. Barclays restated a “neutral” rating and set a $104.00 price objective (up previously from $90.00) on shares of Texas Capital Bancshares in a research note on Friday, January 26th. Keefe, Bruyette & Woods restated a “hold” rating and set a $100.00 price objective on shares of Texas Capital Bancshares in a research note on Friday, December 22nd. Piper Jaffray Companies restated a “hold” rating and set a $98.50 price objective on shares of Texas Capital Bancshares in a research note on Tuesday, January 9th. SunTrust Banks restated a “buy” rating and set a $100.00 price objective on shares of Texas Capital Bancshares in a research note on Wednesday, November 29th. Finally, Deutsche Bank raised their target price on Texas Capital Bancshares from $93.00 to $95.00 and gave the company a “hold” rating in a report on Wednesday, November 8th. One equities research analyst has rated the stock with a sell rating, nine have issued a hold rating and seven have assigned a buy rating to the company. The stock presently has a consensus rating of “Hold” and a consensus price target of $98.75.
Shares of Texas Capital Bancshares (NASDAQ:TCBI) traded up $0.70 during trading on Tuesday, reaching $93.65. 409,100 shares of the company were exchanged, compared to its average volume of 479,293. Texas Capital Bancshares has a one year low of $69.65 and a one year high of $102.90. The company has a quick ratio of 1.23, a current ratio of 1.28 and a debt-to-equity ratio of 1.56. The stock has a market capitalization of $4,630.00, a P/E ratio of 22.84, a P/E/G ratio of 1.29 and a beta of 1.77.
Texas Capital Bancshares (NASDAQ:TCBI) last issued its quarterly earnings results on Wednesday, January 24th. The bank reported $1.19 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.16 by $0.03. Texas Capital Bancshares had a net margin of 20.67% and a return on equity of 10.85%. The company had revenue of $230.02 million during the quarter, compared to the consensus estimate of $219.78 million. During the same quarter in the previous year, the firm earned $0.96 earnings per share. analysts predict that Texas Capital Bancshares will post 6.07 EPS for the current year.
In other Texas Capital Bancshares news, CEO C Keith Cargill bought 2,000 shares of Texas Capital Bancshares stock in a transaction on Tuesday, February 6th. The shares were purchased at an average price of $90.60 per share, with a total value of $181,200.00. Following the acquisition, the chief executive officer now owns 82,286 shares in the company, valued at approximately $7,455,111.60. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 0.47% of the company’s stock.
Hedge funds have recently modified their holdings of the business. Migdal Insurance & Financial Holdings Ltd. purchased a new stake in Texas Capital Bancshares during the third quarter valued at about $101,000. Cubist Systematic Strategies LLC purchased a new stake in shares of Texas Capital Bancshares during the second quarter worth about $201,000. Rehmann Capital Advisory Group purchased a new stake in shares of Texas Capital Bancshares during the third quarter worth about $201,000. Signature Financial Management Inc. purchased a new stake in shares of Texas Capital Bancshares during the third quarter worth about $215,000. Finally, Castleark Management LLC purchased a new stake in shares of Texas Capital Bancshares during the fourth quarter worth about $222,000.
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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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