Texas Capital Bancshares (NASDAQ:TCBI) Downgraded to Sell Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Texas Capital Bancshares from hold to sell, adding to a mixed analyst backdrop where the stock’s consensus rating remains hold with a target price of $104.09.
• The company reported stronger-than-expected Q1 results, posting $1.58 EPS versus the $1.42 estimate and revenue of $323.99 million, up 15.5% from a year ago.
• Recent insider selling has been notable, including CEO Rob C. Holmes selling 49,500 shares; over the past 90 days, insiders have sold 102,100 shares worth about $10.37 million.

Texas Capital Bancshares (NASDAQ:TCBI - Get Free Report) was downgraded by Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued on Saturday.

A number of other equities analysts have also issued reports on TCBI. JPMorgan Chase & Co. reduced their price target on shares of Texas Capital Bancshares from $105.00 to $100.00 and set an "underweight" rating for the company in a research report on Wednesday, April 1st. Piper Sandler upped their price objective on shares of Texas Capital Bancshares from $96.00 to $100.00 and gave the company a "neutral" rating in a report on Friday, April 24th. Zacks Research lowered shares of Texas Capital Bancshares from a "strong-buy" rating to a "hold" rating in a research note on Monday, March 30th. Citigroup raised their target price on shares of Texas Capital Bancshares from $88.00 to $96.00 and gave the stock a "sell" rating in a report on Tuesday, April 28th. Finally, Royal Bank Of Canada boosted their target price on shares of Texas Capital Bancshares from $110.00 to $114.00 and gave the company a "sector perform" rating in a research report on Friday, April 24th. Four analysts have rated the stock with a Buy rating, six have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $104.09.

Texas Capital Bancshares Stock Down 0.2%

Texas Capital Bancshares stock opened at $103.40 on Friday. The business's 50-day simple moving average is $100.27 and its two-hundred day simple moving average is $98.17. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.01 and a current ratio of 1.01. The company has a market cap of $4.52 billion, a PE ratio of 13.90, a PEG ratio of 1.47 and a beta of 0.67. Texas Capital Bancshares has a fifty-two week low of $75.41 and a fifty-two week high of $108.92.

Texas Capital Bancshares (NASDAQ:TCBI - Get Free Report) last released its earnings results on Thursday, April 23rd. The bank reported $1.58 EPS for the quarter, topping analysts' consensus estimates of $1.42 by $0.16. The firm had revenue of $323.99 million during the quarter, compared to the consensus estimate of $318.10 million. Texas Capital Bancshares had a return on equity of 10.76% and a net margin of 17.71%.The company's revenue was up 15.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.92 earnings per share. Equities analysts anticipate that Texas Capital Bancshares will post 7.63 EPS for the current year.

Insider Activity at Texas Capital Bancshares

In related news, CEO Rob C. Holmes sold 49,500 shares of the firm's stock in a transaction on Monday, June 8th. The shares were sold at an average price of $101.22, for a total transaction of $5,010,390.00. Following the sale, 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 ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Anna M. Alvarado sold 3,500 shares of the firm's stock in a transaction on Tuesday, June 9th. The shares were sold at an average price of $100.95, for a total transaction of $353,325.00. Following the sale, the insider owned 23,810 shares in the company, valued at approximately $2,403,619.50. This represents a 12.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 102,100 shares of company stock valued at $10,366,023. Insiders own 1.91% of the company's stock.

Institutional Investors Weigh In On Texas Capital Bancshares

Several hedge funds have recently modified their holdings of TCBI. T. Rowe Price Investment Management Inc. increased its stake in shares of Texas Capital Bancshares by 1.3% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 3,376,880 shares of the bank's stock valued at $305,743,000 after purchasing an additional 43,003 shares in the last quarter. AQR Capital Management LLC boosted its position in Texas Capital Bancshares by 16.4% during the fourth quarter. AQR Capital Management LLC now owns 2,234,678 shares of the bank's stock worth $202,328,000 after purchasing an additional 315,484 shares in the last quarter. Geode Capital Management LLC boosted its position in Texas Capital Bancshares by 2.9% during the fourth quarter. Geode Capital Management LLC now owns 1,197,494 shares of the bank's stock worth $108,436,000 after purchasing an additional 33,709 shares in the last quarter. Azora Capital LP grew its holdings in Texas Capital Bancshares by 11.5% in the third quarter. Azora Capital LP now owns 1,036,613 shares of the bank's stock valued at $87,625,000 after purchasing an additional 106,599 shares during the period. Finally, Massachusetts Financial Services Co. MA grew its holdings in Texas Capital Bancshares by 2.2% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 847,583 shares of the bank's stock valued at $76,740,000 after purchasing an additional 18,258 shares during the period. 96.88% of the stock is owned by hedge funds and other institutional investors.

Texas Capital Bancshares Company Profile

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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