Bank of America Corp DE Purchases New Shares in Texas Capital Bancshares, Inc. $TCBI

Key Points

• Bank of America acquired 464,813 shares of Texas Capital Bancshares during the second quarter, worth approximately $48.0 million and representing a 1.07% stake. Institutional investors collectively own 96.88% of the company.
• Texas Capital Bancshares exceeded quarterly expectations, reporting $1.88 in EPS and $335.5 million in revenue, up 9.1% year over year. The bank also declared a quarterly dividend of $0.20 per share, equal to a 0.8% annualized yield.
• Analyst sentiment remains cautious: the stock has an average “Hold” rating and a consensus price target of $105.83, compared with a recent opening price of $94.90.

Bank of America Corp DE acquired a new stake in Texas Capital Bancshares, Inc. (NASDAQ:TCBI - Free Report) during the second quarter, according to its most recent disclosure with the SEC. The institutional investor acquired 464,813 shares of the bank's stock, valued at approximately $47,997,000. Bank of America Corp DE owned approximately 1.07% of Texas Capital Bancshares at the end of the most recent reporting period.

Several other large investors have also recently added to or reduced their stakes in the company. Man Group plc acquired a new stake in shares of Texas Capital Bancshares in the second quarter valued at approximately $5,033,000. Jupiter Topco LLC acquired a new position in Texas Capital Bancshares in the second quarter valued at about $1,978,000. Canada Pension Plan Investment Board bought a new stake in Texas Capital Bancshares during the second quarter worth about $1,270,000. Legal & General Group Plc bought a new stake in Texas Capital Bancshares during the second quarter worth about $6,029,000. Finally, The Manufacturers Life Insurance Company acquired a new stake in Texas Capital Bancshares during the second quarter worth about $4,228,000. Institutional investors own 96.88% of the company's stock.

Insider Buying and Selling at Texas Capital Bancshares

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

Analysts Set New Price Targets

Several brokerages have recently commented on TCBI. TD Cowen dropped their target price on shares of Texas Capital Bancshares from $109.00 to $106.00 and set a "hold" rating for the company in a research report on Monday, July 27th. Fundamental Research set a $110.00 price target on shares of Texas Capital Bancshares in a research report on Wednesday, July 1st. Barclays raised shares of Texas Capital Bancshares from an "underweight" rating to an "equal weight" rating and set a $100.00 price objective on the stock in a research note on Monday, August 3rd. Citigroup upped their target price on Texas Capital Bancshares from $105.00 to $107.00 and gave the stock a "neutral" rating in a research note on Friday, July 24th. Finally, Weiss Ratings reiterated a "buy (b)" rating on shares of Texas Capital Bancshares in a research note on Monday, July 6th. Four 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, the stock currently has an average rating of "Hold" and an average price target of $105.83.

Texas Capital Bancshares Price Performance

Shares of NASDAQ TCBI opened at $94.90 on Monday. The company has a 50 day simple moving average of $99.43 and a 200 day simple moving average of $99.08. The company has a debt-to-equity ratio of 0.15, a current ratio of 1.00 and a quick ratio of 1.00. Texas Capital Bancshares, Inc. has a 1 year low of $75.41 and a 1 year high of $108.92. The firm has a market cap of $4.13 billion, a PE ratio of 12.34, a price-to-earnings-growth ratio of 1.16 and a beta of 0.66.

Texas Capital Bancshares (NASDAQ:TCBI - Get Free Report) last posted its earnings results on Wednesday, July 22nd. The bank reported $1.88 earnings per share for the quarter, topping analysts' consensus estimates of $1.87 by $0.01. Texas Capital Bancshares had a net margin of 17.90% and a return on equity of 10.86%. The firm had revenue of $335.50 million for the quarter, compared to analyst estimates of $333.37 million. During the same period in the previous year, the firm posted $1.63 EPS. The company's revenue for the quarter was up 9.1% compared to the same quarter last year. On average, research analysts forecast that Texas Capital Bancshares, Inc. will post 7.39 EPS for the current year.

Texas Capital Bancshares Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st were given a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date was Tuesday, September 1st. Texas Capital Bancshares's payout ratio is 10.40%.

Texas Capital Bancshares Profile

Texas Capital Bancshares, Inc is the parent company of Texas Capital Bank, a full-service financial institution headquartered in Dallas, Texas. The bank provides banking, lending and financial services to businesses, entrepreneurs, professionals, high-net-worth individuals and institutional clients.

Its offerings include commercial and industrial lending, commercial real estate financing, treasury management, private banking, wealth management, investment banking and capital markets services.

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