Texas Capital Bancshares (NASDAQ:TCBI) Posts Earnings Results, Beats Estimates By $0.01 EPS

Key Points

• Texas Capital Bancshares reported quarterly EPS of $1.88, beating analyst expectations by $0.01, and revenue of $335.5 million, slightly above consensus estimates.
• The stock fell 0.7% to $102.91 in Wednesday trading despite the earnings beat, leaving it with a market cap of about $4.49 billion.
• The company recently paid a $0.20 quarterly dividend ($0.80 annualized), while insiders have also been selling shares, including CEO Rob C. Holmes and insider Anna M. Alvarado.

Texas Capital Bancshares (NASDAQ:TCBI - Get Free Report) released its quarterly earnings data on Wednesday. The bank reported $1.88 earnings per share for the quarter, beating the consensus estimate of $1.87 by $0.01, FiscalAI reports. Texas Capital Bancshares had a return on equity of 10.76% and a net margin of 17.71%.The firm had revenue of $335.50 million during the quarter, compared to the consensus estimate of $333.37 million.

Texas Capital Bancshares Stock Down 0.7%

NASDAQ:TCBI traded down $0.74 during midday trading on Wednesday, reaching $102.91. 544,850 shares of the stock traded hands, compared to its average volume of 486,898. The stock has a market capitalization of $4.49 billion, a PE ratio of 13.83, a price-to-earnings-growth ratio of 1.49 and a beta of 0.67. Texas Capital Bancshares has a 12-month low of $75.41 and a 12-month high of $108.92. 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 business has a 50-day moving average of $101.09 and a two-hundred day moving average of $99.37.

Texas Capital Bancshares Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, June 15th. Investors of record on Monday, June 1st were given a dividend of $0.20 per share. The ex-dividend date of this dividend was Monday, June 1st. This represents a $0.80 dividend on an annualized basis and a yield of 0.8%. Texas Capital Bancshares's dividend payout ratio is presently 10.75%.

Insider Buying and Selling at Texas Capital Bancshares

In other Texas Capital Bancshares news, insider Anna M. Alvarado sold 3,500 shares of Texas Capital Bancshares stock in a transaction on Tuesday, June 9th. The shares were sold at an average price of $100.95, for a total value of $353,325.00. Following the transaction, the insider directly owned 23,810 shares of the company's stock, valued at approximately $2,403,619.50. The trade was a 12.82% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Rob C. Holmes sold 49,500 shares of the stock in a transaction 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 sale, the chief executive officer owned 167,635 shares of the company's stock, valued at approximately $16,968,014.70. This represents a 22.80% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 102,100 shares of company stock worth $10,366,023 over the last ninety days. Corporate insiders own 1.91% of the company's stock.

Hedge Funds Weigh In On Texas Capital Bancshares

Several hedge funds have recently modified their holdings of the stock. AQR Capital Management LLC boosted its stake in Texas Capital Bancshares by 25.1% in the 3rd quarter. AQR Capital Management LLC now owns 1,919,194 shares of the bank's stock worth $162,229,000 after purchasing an additional 384,748 shares in the last quarter. Balyasny Asset Management L.P. increased its stake in Texas Capital Bancshares by 2,707.2% during the 3rd quarter. Balyasny Asset Management L.P. now owns 348,936 shares of the bank's stock valued at $29,496,000 after purchasing an additional 336,506 shares in the last quarter. Alyeska Investment Group L.P. purchased a new position in shares of Texas Capital Bancshares in the fourth quarter worth $23,174,000. UBS Group AG raised its holdings in shares of Texas Capital Bancshares by 56.8% in the third quarter. UBS Group AG now owns 403,692 shares of the bank's stock worth $34,124,000 after buying an additional 146,181 shares during the last quarter. Finally, Ameriprise Financial Inc. lifted its stake in shares of Texas Capital Bancshares by 49.7% during the third quarter. Ameriprise Financial Inc. now owns 397,927 shares of the bank's stock worth $33,636,000 after buying an additional 132,127 shares during the period. Institutional investors and hedge funds own 96.88% of the company's stock.

Wall Street Analyst Weigh In

TCBI has been the subject of several recent research reports. Citigroup upgraded shares of Texas Capital Bancshares from a "sell" rating to a "neutral" rating and boosted their price target for the company from $96.00 to $105.00 in a report on Tuesday, June 30th. Fundamental Research set a $110.00 price objective on shares of Texas Capital Bancshares in a report on Wednesday, July 1st. JPMorgan Chase & Co. upped their target price on Texas Capital Bancshares from $105.00 to $110.00 and gave the stock an "underweight" rating in a report on Wednesday, July 1st. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Texas Capital Bancshares in a research report on Monday, July 6th. Finally, Royal Bank Of Canada lifted their price target on Texas Capital Bancshares from $110.00 to $114.00 and gave the company a "sector perform" rating in a report on Friday, April 24th. Four investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $106.17.

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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