Third Coast Bancshares (NASDAQ:TCBX) Downgraded by Zacks Research to Hold

Key Points

• Third Coast Bancshares has been downgraded by Zacks Research from a "strong-buy" to a "hold" rating, reflecting a shift in analyst sentiment regarding the stock's performance.
• Keeffe, Bruyette & Woods has raised its price target for Third Coast Bancshares from $38.00 to $42.00, with a "market perform" rating after the company's recent quarterly earnings report.
• The company recently announced a stock buyback plan allowing it to repurchase $30 million in shares, indicating a belief by management that the stock is undervalued.

Third Coast Bancshares (NASDAQ:TCBX - Get Free Report) was downgraded by Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued on Tuesday,Zacks.com reports.

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

Third Coast Bancshares Stock Performance

NASDAQ TCBX opened at $39.48 on Tuesday. Third Coast Bancshares has a one year low of $25.00 and a one year high of $41.25. The company has a 50-day simple moving average of $38.53 and a 200-day simple moving average of $33.91. The firm has a market capitalization of $547.19 million, a PE ratio of 12.07 and a beta of 0.41.

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

Third Coast Bancshares announced that its Board of Directors has authorized a stock buyback plan on Tuesday, June 17th that permits the company to repurchase $30.00 million in outstanding shares. This repurchase authorization permits the company to purchase up to 7.3% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's leadership believes its stock is undervalued.

Insiders Place Their Bets

In other news, insider William Bobbora acquired 1,300 shares of the business's stock in a transaction that occurred on Tuesday, July 29th. The shares were purchased at an average cost of $37.56 per share, for a total transaction of $48,828.00. Following the transaction, the insider directly owned 11,750 shares in the company, valued at $441,330. This trade represents a 12.44% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 10.28% of the stock is currently owned by corporate insiders.

Institutional Trading of Third Coast Bancshares

Several hedge funds have recently bought and sold shares of the company. Adage Capital Partners GP L.L.C. raised its position in shares of Third Coast Bancshares by 28.2% during the 2nd quarter. Adage Capital Partners GP L.L.C. now owns 511,940 shares of the company's stock worth $16,725,000 after buying an additional 112,605 shares in the last quarter. Nuveen LLC bought a new stake in shares of Third Coast Bancshares during the 1st quarter worth about $3,168,000. Millennium Management LLC raised its position in shares of Third Coast Bancshares by 88.2% during the 1st quarter. Millennium Management LLC now owns 177,521 shares of the company's stock worth $5,924,000 after buying an additional 83,209 shares in the last quarter. Invesco Ltd. bought a new stake in shares of Third Coast Bancshares during the 1st quarter worth about $2,732,000. Finally, Franklin Resources Inc. raised its position in shares of Third Coast Bancshares by 435.4% during the 2nd quarter. Franklin Resources Inc. now owns 100,408 shares of the company's stock worth $3,280,000 after buying an additional 81,655 shares in the last quarter. 36.88% of the stock is currently owned by institutional investors.

About Third Coast Bancshares

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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