Royal Bank Of Canada Issues Pessimistic Forecast for Texas Capital Bancshares (NASDAQ:TCBI) Stock Price

Key Points

• Royal Bank of Canada cut its Texas Capital Bancshares price target from $113 to $110 while maintaining a “sector perform” rating, implying 12.54% potential upside from the prior close.
• Analyst sentiment remains mixed but leans neutral: the stock has an average “Hold” rating and a consensus price target of $104.33, with several firms recently lowering their targets.
• Texas Capital Bancshares exceeded quarterly expectations, reporting $2.35 in EPS versus the $1.96 consensus and $356.6 million in revenue versus $339.89 million expected; shares recently traded at $97.75.

Texas Capital Bancshares (NASDAQ:TCBI - Get Free Report) had its target price reduced by equities research analysts at Royal Bank Of Canada from $113.00 to $110.00 in a report released on Thursday, Benzinga reports. The firm currently has a "sector perform" rating on the bank's stock. Royal Bank Of Canada's price objective points to a potential upside of 12.54% from the stock's previous close.

Several other equities research analysts have also recently issued reports on TCBI. Citigroup decreased their target price on shares of Texas Capital Bancshares from $107.00 to $104.00 and set a "neutral" rating on the stock in a research report on Tuesday, September 22nd. TD Cowen decreased their target price on Texas Capital Bancshares from $106.00 to $100.00 and set a "hold" rating for the company in a research report on Monday, October 5th. Raymond James Financial cut their price target on Texas Capital Bancshares from $115.00 to $108.00 and set an "outperform" rating on the stock in a research note on Tuesday, October 6th. JPMorgan Chase & Co. decreased their price objective on shares of Texas Capital Bancshares from $110.00 to $100.00 and set an "underweight" rating for the company in a report on Thursday, October 1st. Finally, Stephens dropped their target price on shares of Texas Capital Bancshares from $116.00 to $112.00 and set an "overweight" rating on the stock in a report on Thursday, July 23rd. Four investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $104.33.

Texas Capital Bancshares Price Performance

Shares of TCBI traded up $4.25 during mid-day trading on Thursday, reaching $97.75. 369,961 shares of the company's stock were exchanged, compared to its average volume of 491,664. Texas Capital Bancshares has a 52-week low of $81.26 and a 52-week high of $108.92. The company has a market cap of $4.25 billion, a price-to-earnings ratio of 12.71, a PEG ratio of 0.96 and a beta of 0.63. The company has a 50-day simple moving average of $95.51 and a two-hundred day simple moving average of $98.94. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.15.

Texas Capital Bancshares (NASDAQ:TCBI - Get Free Report) last issued its quarterly earnings data on Wednesday, October 21st. The bank reported $2.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.96 by $0.39. Texas Capital Bancshares had a return on equity of 10.86% and a net margin of 17.90%. The business had revenue of $356.60 million for the quarter, compared to the consensus estimate of $339.89 million. On average, sell-side analysts predict that Texas Capital Bancshares will post 7.40 EPS for the current fiscal year.

Insider Buying and Selling at Texas Capital Bancshares

In other Texas Capital Bancshares news, insider Ellen Detrich sold 2,045 shares of Texas Capital Bancshares stock in a transaction on Friday, July 24th. The shares were sold at an average price of $100.03, for a total transaction of $204,561.35. Following the completion of the sale, the insider owned 7,529 shares of the company's stock, valued at $753,125.87. This trade represents a 21.36% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. 1.91% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. BlackRock Inc. acquired a new position in shares of Texas Capital Bancshares during the 2nd quarter worth about $578,148,000. Barrow Hanley Mewhinney & Strauss LLC bought a new position in Texas Capital Bancshares in the second quarter worth $75,429,000. Wellington Management Group LLP boosted its position in shares of Texas Capital Bancshares by 47.3% during the 2nd quarter. Wellington Management Group LLP now owns 483,210 shares of the bank's stock valued at $49,896,000 after acquiring an additional 155,201 shares in the last quarter. Bank of America Corp DE bought a new stake in shares of Texas Capital Bancshares in the 2nd quarter valued at approximately $47,997,000. Finally, Bank of New York Mellon Corp acquired a new position in Texas Capital Bancshares during the second quarter worth $43,244,000. Institutional investors and hedge funds own 96.88% of the company's stock.

About Texas Capital Bancshares

Texas Capital Bancshares, Inc is the parent company of Texas Capital Bank, a full-service financial institution headquartered in Dallas, Texas. The bank primarily serves commercial and middle-market businesses, entrepreneurs, professionals, high-net-worth individuals and institutions.

Texas Capital Bank offers commercial and private banking services, including business and personal deposit accounts, commercial and real estate lending, treasury management, wealth management and related financial solutions.

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