Texas Capital Bancshares (NASDAQ:TCBI) Shares Cross Above 200 Day Moving Average - Here's Why

Key Points

• Texas Capital Bancshares (NASDAQ: TCBI) shares moved above their 200-day moving average, trading as high as $107.78 and last changing hands at $107.74, signaling recent technical strength.
• Recent earnings were solid, with the bank posting $1.58 EPS versus estimates of $1.42 and revenue of $323.99 million, both ahead of expectations. Analysts now see full-year EPS at 7.56.
• Wall Street’s view is mixed: the stock has a consensus Hold rating and an average price target of $106.17, while insiders have been selling shares and the company recently paid a quarterly dividend of $0.20 per share.

Texas Capital Bancshares, Inc. (NASDAQ:TCBI - Get Free Report) shares crossed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $99.12 and traded as high as $107.78. Texas Capital Bancshares shares last traded at $107.74, with a volume of 638,005 shares changing hands.

Wall Street Analysts Forecast Growth

TCBI has been the topic of a number of analyst reports. 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. Royal Bank Of Canada increased their target price on shares of Texas Capital Bancshares from $110.00 to $114.00 and gave the stock a "sector perform" rating in a report on Friday, April 24th. JPMorgan Chase & Co. raised their target price on Texas Capital Bancshares from $105.00 to $110.00 and gave the stock an "underweight" rating in a research note on Wednesday, July 1st. Zacks Research cut Texas Capital Bancshares from a "strong-buy" rating to a "hold" rating in a research note on Monday, March 30th. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Texas Capital Bancshares in a report on Monday, July 6th. Four investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $106.17.

Texas Capital Bancshares Stock Up 3.7%

The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 0.27. The company's fifty day moving average price is $100.75 and its 200-day moving average price is $99.12. The stock has a market capitalization of $4.71 billion, a PE ratio of 14.48, a price-to-earnings-growth ratio of 1.49 and a beta of 0.67.

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. Texas Capital Bancshares had a return on equity of 10.76% and a net margin of 17.71%.The firm had revenue of $323.99 million for the quarter, compared to analysts' expectations of $318.10 million. During the same period in the prior year, the firm posted $0.92 earnings per share. The company's quarterly revenue was up 15.5% on a year-over-year basis. Analysts forecast that Texas Capital Bancshares, Inc. will post 7.56 earnings per share for the current year.

Texas Capital Bancshares Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Monday, June 1st were issued a $0.20 dividend. The ex-dividend date of this dividend was Monday, June 1st. This represents a $0.80 annualized dividend and a yield of 0.7%. Texas Capital Bancshares's payout ratio is 10.75%.

Insider Activity at Texas Capital Bancshares

In related news, insider Anna M. Alvarado sold 3,500 shares of the firm's stock in a transaction that occurred 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 completion of the sale, the insider owned 23,810 shares of the company's stock, valued at $2,403,619.50. This trade represents a 12.82% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Rob C. Holmes sold 49,500 shares of the business's stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $101.22, for a total transaction of $5,010,390.00. Following the completion of the transaction, the chief executive officer owned 167,635 shares of the company's stock, valued at approximately $16,968,014.70. The trade was a 22.80% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 102,100 shares of company stock worth $10,366,023. Insiders own 1.91% of the company's stock.

Institutional Trading of Texas Capital Bancshares

Several institutional investors have recently added to or reduced their stakes in TCBI. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of Texas Capital Bancshares by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 27,603 shares of the bank's stock worth $2,062,000 after purchasing an additional 1,206 shares in the last quarter. Goldman Sachs Group Inc. lifted its holdings in shares of Texas Capital Bancshares by 3.7% during the first quarter. Goldman Sachs Group Inc. now owns 560,070 shares of the bank's stock valued at $41,837,000 after purchasing an additional 20,231 shares in the last quarter. United Services Automobile Association bought a new position in shares of Texas Capital Bancshares during the first quarter valued at $230,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of Texas Capital Bancshares by 29.5% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 107,761 shares of the bank's stock valued at $8,050,000 after buying an additional 24,538 shares during the last quarter. Finally, Invesco Ltd. boosted its position in shares of Texas Capital Bancshares by 34.0% during the second quarter. Invesco Ltd. now owns 149,559 shares of the bank's stock valued at $11,875,000 after buying an additional 37,982 shares during the last quarter. 96.88% of the stock is currently owned by hedge funds and other institutional investors.

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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