Texas Capital Bancshares, Inc. (NASDAQ:TCBI) Receives Consensus Recommendation of "Hold" from Brokerages

Key Points

• Analysts maintain a “Hold” consensus on Texas Capital Bancshares, with eight hold, four buy, and one sell rating among 13 firms. The average 12-month price target is $105.83 versus the stock’s reported price of $100.86.
• The bank slightly exceeded quarterly expectations, reporting EPS of $1.88 versus the $1.87 consensus and revenue of $335.5 million, up 9.1% year over year. Analysts expect full-year EPS of $7.39.
• Insiders sold 104,145 shares worth about $10.6 million over the past three months, while institutional investors and hedge funds own a substantial 96.88% of the stock. Texas Capital also declared a quarterly dividend of $0.20 per share, implying a 0.8% annual yield.

Texas Capital Bancshares, Inc. (NASDAQ:TCBI - Get Free Report) has received a consensus recommendation of "Hold" from the thirteen ratings firms that are currently covering the company, MarketBeat reports. One analyst has rated the stock with a sell recommendation, eight have given a hold recommendation and four have issued a buy recommendation on the company. The average twelve-month target price among analysts that have issued ratings on the stock in the last year is $105.8333.

Several brokerages have commented on TCBI. Weiss Ratings reissued a "buy (b)" rating on shares of Texas Capital Bancshares in a report on Monday, July 6th. Piper Sandler increased their target price on Texas Capital Bancshares from $96.00 to $100.00 and gave the company a "neutral" rating in a research report on Friday, April 24th. Royal Bank Of Canada lifted their price target on shares of Texas Capital Bancshares from $110.00 to $114.00 and gave the company a "sector perform" rating in a research note on Friday, April 24th. Stephens cut their price target on shares of Texas Capital Bancshares from $116.00 to $112.00 and set an "overweight" rating for the company in a report on Thursday, July 23rd. Finally, Wall Street Zen cut shares of Texas Capital Bancshares from a "hold" rating to a "sell" rating in a research report on Saturday, June 27th.

Insider Activity at Texas Capital Bancshares

In other Texas Capital Bancshares news, insider Ellen Detrich sold 2,045 shares of the stock in a transaction that occurred on Friday, July 24th. The stock was sold at an average price of $100.03, for a total transaction of $204,561.35. Following the completion of the transaction, the insider owned 7,529 shares of the company's stock, valued at $753,125.87. This represents a 21.36% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Rob C. Holmes sold 49,500 shares of the firm's stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $101.22, for a total value of $5,010,390.00. Following the completion of the transaction, the chief executive officer owned 167,635 shares in the company, valued at approximately $16,968,014.70. This trade represents a 22.80% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 104,145 shares of company stock valued at $10,570,584. 1.91% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new stake in Texas Capital Bancshares during the 2nd quarter worth $578,148,000. T. Rowe Price Investment Management Inc. grew its holdings in shares of Texas Capital Bancshares by 1.3% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 3,376,880 shares of the bank's stock worth $305,743,000 after buying an additional 43,003 shares in the last quarter. AQR Capital Management LLC raised its position in shares of Texas Capital Bancshares by 16.4% in the fourth quarter. AQR Capital Management LLC now owns 2,234,678 shares of the bank's stock valued at $202,328,000 after buying an additional 315,484 shares during the last quarter. Geode Capital Management LLC lifted its stake in shares of Texas Capital Bancshares by 2.9% in the fourth quarter. Geode Capital Management LLC now owns 1,197,494 shares of the bank's stock worth $108,436,000 after buying an additional 33,709 shares in the last quarter. Finally, Barrow Hanley Mewhinney & Strauss LLC purchased a new position in shares of Texas Capital Bancshares in the second quarter worth about $75,429,000. 96.88% of the stock is owned by institutional investors and hedge funds.

Texas Capital Bancshares Trading Up 0.5%

Shares of Texas Capital Bancshares stock opened at $100.86 on Thursday. The firm has a 50-day simple moving average of $101.52 and a two-hundred day simple moving average of $99.73. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.00 and a current ratio of 1.00. Texas Capital Bancshares has a fifty-two week low of $75.41 and a fifty-two week high of $108.92. The company has a market cap of $4.38 billion, a P/E ratio of 13.12, a price-to-earnings-growth ratio of 1.22 and a beta of 0.68.

Texas Capital Bancshares (NASDAQ:TCBI - Get Free Report) last posted its earnings results on Wednesday, July 22nd. The bank reported $1.88 EPS for the quarter, beating analysts' consensus estimates of $1.87 by $0.01. Texas Capital Bancshares had a return on equity of 10.86% and a net margin of 17.90%.The firm had revenue of $335.50 million for the quarter, compared to analysts' expectations of $333.37 million. During the same period last year, the firm earned $1.63 EPS. The company's quarterly revenue was up 9.1% on a year-over-year basis. As a group, equities analysts predict that Texas Capital Bancshares will post 7.39 earnings per share for the current fiscal year.

Texas Capital Bancshares Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be paid a dividend of $0.20 per share. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $0.80 dividend on an annualized basis and a dividend yield of 0.8%. Texas Capital Bancshares's payout ratio is currently 10.40%.

About Texas Capital Bancshares

Texas Capital Bancshares, Inc is a bank holding company headquartered in Dallas, Texas, operating through its wholly owned subsidiary, Texas Capital Bank. The company specializes in providing commercial banking services to middle-market companies, entrepreneurs, professional service firms, real estate developers, and not-for-profit organizations. Its broad range of offerings includes commercial lending, treasury and cash management, real estate finance, equipment finance, and energy lending, all designed to address the unique financial needs of businesses navigating growth and market challenges.

In addition to its core commercial banking capabilities, Texas Capital Bancshares delivers private banking and wealth management services for business owners and high-net-worth individuals.

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