Short Interest in Third Coast Bancshares, Inc. (NASDAQ:TCBX) Declines By 29.6%

Key Points

• Short interest in Third Coast Bancshares, Inc. declined by 29.6% in August, falling to 253,700 shares from 360,200 shares at the end of July.
• The company's recent quarterly earnings exceeded expectations, with $0.96 earnings per share reported, outperforming the consensus estimate of $0.75.
• Third Coast Bancshares recently announced a $30 million share repurchase plan, indicating confidence from company leadership in the value of its stock.

Third Coast Bancshares, Inc. (NASDAQ:TCBX - Get Free Report) was the recipient of a large drop in short interest in August. As of August 15th, there was short interest totaling 253,700 shares, adropof29.6% from the July 31st total of 360,200 shares. Currently,2.3% of the shares of the stock are short sold. Based on an average trading volume of 65,800 shares, the days-to-cover ratio is presently 3.9 days. Based on an average trading volume of 65,800 shares, the days-to-cover ratio is presently 3.9 days. Currently,2.3% of the shares of the stock are short sold.

Third Coast Bancshares Stock Performance

Shares of NASDAQ:TCBX opened at $39.98 on Friday. Third Coast Bancshares has a 52 week low of $24.87 and a 52 week high of $41.25. The company has a 50 day moving average price of $37.27 and a two-hundred day moving average price of $33.48. The company has a market capitalization of $554.12 million, a PE ratio of 12.23 and a beta of 0.41.

Third Coast Bancshares (NASDAQ:TCBX - Get Free Report) last announced its quarterly earnings data on Wednesday, July 23rd. The company reported $0.96 earnings per share for the quarter, beating the consensus estimate of $0.75 by $0.21. The firm had revenue of $52.02 million during the quarter, compared to the consensus estimate of $47.52 million. Third Coast Bancshares had a return on equity of 12.05% and a net margin of 16.30%. On average, sell-side analysts forecast that Third Coast Bancshares will post 3.1 earnings per share for the current year.

Third Coast Bancshares declared that its Board of Directors has approved a share repurchase plan on Tuesday, June 17th that allows the company to buyback $30.00 million in shares. This buyback authorization allows the company to buy up to 7.3% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's leadership believes its shares are undervalued.

Insiders Place Their Bets

In related news, insider William Bobbora acquired 1,300 shares of the stock in a transaction on Tuesday, July 29th. The stock was purchased at an average price of $37.56 per share, for a total transaction of $48,828.00. Following the transaction, the insider owned 11,750 shares of the company's stock, valued at $441,330. The trade was a 12.44% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 10.28% of the company's stock.

Hedge Funds Weigh In On Third Coast Bancshares

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Squarepoint Ops LLC raised its holdings in shares of Third Coast Bancshares by 8.0% during the second quarter. Squarepoint Ops LLC now owns 43,579 shares of the company's stock valued at $1,424,000 after acquiring an additional 3,224 shares in the last quarter. Corient Private Wealth LLC raised its holdings in Third Coast Bancshares by 127.6% in the second quarter. Corient Private Wealth LLC now owns 40,324 shares of the company's stock worth $1,317,000 after purchasing an additional 22,605 shares in the last quarter. Man Group plc bought a new position in Third Coast Bancshares in the second quarter worth $219,000. BNP Paribas Financial Markets raised its holdings in Third Coast Bancshares by 79.4% in the second quarter. BNP Paribas Financial Markets now owns 17,051 shares of the company's stock worth $557,000 after purchasing an additional 7,548 shares in the last quarter. Finally, Adage Capital Partners GP L.L.C. raised its holdings in Third Coast Bancshares by 28.2% in the second quarter. Adage Capital Partners GP L.L.C. now owns 511,940 shares of the company's stock worth $16,725,000 after purchasing an additional 112,605 shares in the last quarter. Institutional investors own 36.88% of the company's stock.

Analyst Upgrades and Downgrades

Separately, Keefe, Bruyette & Woods raised their price objective on shares of Third Coast Bancshares from $38.00 to $42.00 and gave the company a "market perform" rating in a research report on Monday, July 28th. One analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Third Coast Bancshares presently has a consensus rating of "Hold" and a consensus target price of $40.00.

Third Coast Bancshares Company Profile

Third Coast Bancshares, Inc operates as a bank holding company for Third Coast Bank, SSB that provides various commercial banking solutions to small and medium-sized businesses, and professionals. The company's deposit products include checking, savings, individual retirement, and money market accounts, as well as certificates of deposit.

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