Third Coast Bancshares (NASDAQ:TCBX) Shares Gap Up - Here's What Happened

Key Points

• Third Coast Bancshares shares gapped up at the open, rising from a prior close of $40.14 to an opening price of $43.00 before settling near $40.23 in early trading.
• Analysts remain generally positive on the stock, with Raymond James upgrading TCBX to outperform and the consensus rating sitting at Moderate Buy with a $45.00 target price.
• The company’s board approved a $30 million stock repurchase program on July 2, allowing it to buy back up to 4.5% of outstanding shares, which may signal management believes the stock is undervalued.

Third Coast Bancshares, Inc. (NASDAQ:TCBX - Get Free Report)'s share price gapped up before the market opened on Thursday . The stock had previously closed at $40.14, but opened at $43.00. Third Coast Bancshares shares last traded at $40.2340, with a volume of 7,056 shares traded.

Analysts Set New Price Targets

TCBX has been the topic of several research analyst reports. Raymond James Financial raised Third Coast Bancshares from a "market perform" rating to an "outperform" rating and set a $45.00 price objective on the stock in a research note on Tuesday, April 7th. Stephens lowered their price objective on shares of Third Coast Bancshares from $46.00 to $45.00 and set an "overweight" rating for the company in a research report on Friday, April 24th. Three equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, Third Coast Bancshares has a consensus rating of "Moderate Buy" and a consensus target price of $45.00.

Third Coast Bancshares Price Performance

The company has a market capitalization of $674.88 million, a P/E ratio of 12.44 and a beta of 0.33. The company has a fifty day moving average price of $39.33 and a two-hundred day moving average price of $39.40.

Third Coast Bancshares announced that its board has approved a stock repurchase program on Thursday, July 2nd that allows the company to buyback $30.00 million in outstanding shares. This buyback authorization allows the company to purchase up to 4.5% of its stock through open market purchases. Stock buyback programs are often an indication that the company's board of directors believes its shares are undervalued.

Hedge Funds Weigh In On Third Coast Bancshares

Several institutional investors and hedge funds have recently added to or reduced their stakes in TCBX. Sei Investments Co. grew its position in shares of Third Coast Bancshares by 172.5% in the 1st quarter. Sei Investments Co. now owns 178,570 shares of the company's stock valued at $6,756,000 after buying an additional 113,043 shares during the last quarter. Adage Capital Partners GP L.L.C. raised its position in shares of Third Coast Bancshares by 28.2% during the second quarter. Adage Capital Partners GP L.L.C. now owns 511,940 shares of the company's stock worth $16,725,000 after acquiring an additional 112,605 shares during the last quarter. Millennium Management LLC lifted its stake in shares of Third Coast Bancshares by 88.2% in the first quarter. Millennium Management LLC now owns 177,521 shares of the company's stock worth $5,924,000 after acquiring an additional 83,209 shares during the period. Invesco Ltd. lifted its stake in shares of Third Coast Bancshares by 397.9% in the fourth quarter. Invesco Ltd. now owns 90,739 shares of the company's stock worth $3,449,000 after acquiring an additional 72,513 shares during the period. Finally, Wellington Management Group LLP boosted its holdings in Third Coast Bancshares by 44.9% in the fourth quarter. Wellington Management Group LLP now owns 193,326 shares of the company's stock valued at $7,348,000 after acquiring an additional 59,924 shares during the last quarter. 36.88% of the stock is currently owned by institutional investors and hedge funds.

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. It also offers commercial and industrial loans, equipment loans, working capital lines of credit, guaranteed loans, auto finance, letters of credit, commercial and residential real estate, and construction, development, and other loans.

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