Texas Capital Bancshares (NASDAQ:TCBI) Cut to “Hold” at Zacks Investment Research

Texas Capital Bancshares (NASDAQ:TCBI) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Tuesday, Zacks.com reports. They presently have a $62.00 price objective on the bank’s stock. Zacks Investment Research‘s price target points to a potential upside of 4.59% from the stock’s previous close.

According to Zacks, “Shares of Texas Capital have outperformed the industry, over the past six months. Yet, the company has a disappointing earnings surprise history, beating the Zacks Consensus Estimate in only one of the trailing four quarters. Texas Capital’s persistently rising expenses, mainly due to the hiring of experienced bankers, is likely to impede bottom-line growth to some extent. Moreover, lack of diversification in loan portfolio is a concern. However, growth in revenues, supported my favorable interest rates, is a tailwind. Further, the company’s diversified fee income sources are likely to support the bottom-line expansion. 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.”

Other equities analysts have also issued reports about the company. Piper Jaffray Companies lowered Texas Capital Bancshares from an “overweight” rating to a “neutral” rating and dropped their price objective for the stock from $71.50 to $64.50 in a research note on Friday, June 7th. Sanford C. Bernstein upgraded Texas Capital Bancshares from a “market perform” rating to an “outperform” rating in a research note on Tuesday, May 28th. TheStreet upgraded Texas Capital Bancshares from a “c+” rating to a “b-” rating in a research note on Tuesday, April 30th. Wedbush lowered Texas Capital Bancshares from an “outperform” rating to a “neutral” rating and set a $65.00 price objective on the stock. in a research note on Wednesday, March 27th. Finally, Stephens reiterated a “hold” rating on shares of Texas Capital Bancshares in a research note on Thursday, April 18th. Two research analysts have rated the stock with a sell rating, ten have assigned a hold rating and four have given a buy rating to the company. The company currently has an average rating of “Hold” and an average price target of $77.25.

Texas Capital Bancshares stock opened at $59.28 on Tuesday. The company has a debt-to-equity ratio of 1.64, a quick ratio of 1.21 and a current ratio of 1.30. The stock has a market capitalization of $2.95 billion, a PE ratio of 10.24, a price-to-earnings-growth ratio of 0.88 and a beta of 1.84. Texas Capital Bancshares has a 52 week low of $47.86 and a 52 week high of $101.80.

Texas Capital Bancshares (NASDAQ:TCBI) last posted its quarterly earnings data on Wednesday, April 17th. The bank reported $1.60 EPS for the quarter, topping analysts’ consensus estimates of $1.34 by $0.26. The business had revenue of $265.63 million for the quarter, compared to analyst estimates of $253.83 million. Texas Capital Bancshares had a return on equity of 13.37% and a net margin of 23.36%. During the same period in the previous year, the company posted $1.38 earnings per share. Analysts anticipate that Texas Capital Bancshares will post 6.46 EPS for the current year.

In other Texas Capital Bancshares news, Director Ian J. Turpin sold 3,977 shares of Texas Capital Bancshares stock in a transaction that occurred on Monday, May 20th. The stock was sold at an average price of $60.59, for a total transaction of $240,966.43. Following the sale, the director now directly owns 4,632 shares of the company’s stock, valued at $280,652.88. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO C Keith Cargill acquired 3,000 shares of the firm’s stock in a transaction on Thursday, May 23rd. The shares were bought at an average cost of $58.83 per share, for a total transaction of $176,490.00. Following the completion of the acquisition, the chief executive officer now directly owns 120,847 shares of the company’s stock, valued at approximately $7,109,429.01. The disclosure for this purchase can be found here. 0.54% of the stock is owned by company insiders.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Toronto Dominion Bank acquired a new stake in Texas Capital Bancshares during the fourth quarter valued at approximately $74,000. Jane Street Group LLC acquired a new stake in Texas Capital Bancshares during the fourth quarter valued at approximately $2,656,000. Context BH Capital Management LP acquired a new stake in Texas Capital Bancshares during the fourth quarter valued at approximately $12,423,000. Basswood Capital Management L.L.C. acquired a new stake in Texas Capital Bancshares during the fourth quarter valued at approximately $18,753,000. Finally, Deutsche Bank AG boosted its holdings in Texas Capital Bancshares by 0.8% during the fourth quarter. Deutsche Bank AG now owns 354,154 shares of the bank’s stock valued at $18,092,000 after purchasing an additional 2,726 shares in the last quarter. 95.95% of the stock is currently owned by institutional investors.

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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