Texas Capital Bancshares (NASDAQ:TCBI) Announces Quarterly Earnings Results

Key Points

• Texas Capital Bancshares exceeded quarterly expectations, reporting earnings of $2.35 per share versus the $1.96 consensus estimate and revenue of $356.60 million versus expectations of $339.89 million.
• The stock rose 2.7% to $93.49 following the results, while the company reported a 17.90% net margin and 10.86% return on equity.
• Analysts remain cautious: the stock has a consensus “Hold” rating and an average price target of $104.42, despite four Buy ratings, eight Holds and one Sell rating.

Texas Capital Bancshares (NASDAQ:TCBI - Get Free Report) issued its earnings results on Wednesday. The bank reported $2.35 EPS for the quarter, beating the consensus estimate of $1.96 by $0.39, FiscalAI reports. The company had revenue of $356.60 million during the quarter, compared to analysts' expectations of $339.89 million. Texas Capital Bancshares had a net margin of 17.90% and a return on equity of 10.86%.

Texas Capital Bancshares Trading Up 2.7%

Texas Capital Bancshares stock traded up $2.43 during trading hours on Wednesday, hitting $93.49. The stock had a trading volume of 578,224 shares, compared to its average volume of 492,237. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.15. The stock has a market cap of $4.06 billion, a price-to-earnings ratio of 12.16, a P/E/G ratio of 0.96 and a beta of 0.63. Texas Capital Bancshares has a one year low of $80.94 and a one year high of $108.92. The business's 50 day simple moving average is $95.66 and its 200-day simple moving average is $98.96.

Analyst Upgrades and Downgrades

Several research analysts have commented on the stock. Raymond James Financial lowered their price objective on shares of Texas Capital Bancshares from $115.00 to $108.00 and set an "outperform" rating for the company in a research report on Tuesday, October 6th. Stephens decreased their price target on Texas Capital Bancshares from $116.00 to $112.00 and set an "overweight" rating on the stock in a research note on Thursday, July 23rd. Citigroup decreased their price target on Texas Capital Bancshares from $107.00 to $104.00 and set a "neutral" rating on the stock in a research note on Tuesday, September 22nd. JPMorgan Chase & Co. lowered their price target on 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, TD Cowen dropped their price objective 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. Four equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $104.42.

Insider Buying and Selling at Texas Capital Bancshares

In other news, insider Ellen Detrich sold 2,045 shares of the business's stock in a transaction dated Friday, July 24th. The stock was sold at an average price of $100.03, for a total transaction of $204,561.35. Following the sale, the insider directly owned 7,529 shares in the company, valued at approximately $753,125.87. The trade was a 21.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Company insiders own 1.91% of the company's stock.

Texas Capital Bancshares Company Profile

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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