According to Zacks, “Shares of Texas Capital have underperformed the industry over the past six months. The company has a disappointing earnings surprise history, beating the Zacks Consensus Estimate in only one of the trailing four quarters. Further, earnings estimates have been going down ahead of the company's first quarter 2019 results. The company’s persistently increasing expenses, mainly due to hiring of experienced bankers, is likely to impede bottom-line growth to some extent. Moreover, lack of geographical diversification remains a concern. However, growth in revenues and favorable interest rates are likely to support the company. Also, the company’s diversified fee income sources, along with rising loans and deposits balances are likely to drive top-line growth.”
TCBI has been the subject of several other reports. JPMorgan Chase & Co. started coverage on Texas Capital Bancshares in a report on Friday, December 14th. They set a neutral rating for the company. Jefferies Financial Group downgraded Texas Capital Bancshares from a buy rating to a hold rating in a report on Tuesday, January 8th. Stephens reaffirmed a hold rating and set a $59.00 price target on shares of Texas Capital Bancshares in a report on Wednesday, December 19th. Barclays raised Texas Capital Bancshares from an equal weight rating to an overweight rating and set a $70.00 price target for the company in a report on Thursday, January 10th. Finally, Wedbush downgraded Texas Capital Bancshares from an outperform rating to a neutral rating and set a $65.00 price target for the company. in a report on Wednesday, March 27th. Three equities research analysts have rated the stock with a sell rating, ten have given a hold rating and five have issued a buy rating to the company’s stock. The stock presently has a consensus rating of Hold and a consensus price target of $89.57.
Shares of NASDAQ TCBI opened at $58.71 on Friday. The company has a debt-to-equity ratio of 1.83, a current ratio of 1.32 and a quick ratio of 1.23. Texas Capital Bancshares has a 1-year low of $47.86 and a 1-year high of $103.05. The firm has a market cap of $2.98 billion, a P/E ratio of 10.14, a P/E/G ratio of 0.92 and a beta of 1.77.
Texas Capital Bancshares (NASDAQ:TCBI) last issued its quarterly earnings results on Wednesday, January 23rd. The bank reported $1.38 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $1.59 by ($0.21). Texas Capital Bancshares had a return on equity of 13.35% and a net margin of 24.02%. The company had revenue of $255.95 million for the quarter, compared to analyst estimates of $253.17 million. During the same period in the prior year, the business earned $1.19 earnings per share. On average, sell-side analysts predict that Texas Capital Bancshares will post 6.24 earnings per share for the current fiscal year.
In other Texas Capital Bancshares news, Director Ian J. Turpin sold 1,294 shares of the stock in a transaction on Thursday, February 28th. The stock was sold at an average price of $60.72, for a total value of $78,571.68. Following the completion of the transaction, the director now owns 8,102 shares in the company, valued at $491,953.44. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Steve Rosenberg sold 2,305 shares of the stock in a transaction on Wednesday, March 6th. The stock was sold at an average price of $61.31, for a total value of $141,319.55. Following the completion of the transaction, the director now owns 35,008 shares of the company’s stock, valued at approximately $2,146,340.48. The disclosure for this sale can be found here. Corporate insiders own 0.54% of the company’s stock.
Hedge funds have recently made changes to their positions in the company. JOYN Advisors Inc. increased its position in shares of Texas Capital Bancshares by 1,445.8% in the fourth quarter. JOYN Advisors Inc. now owns 912 shares of the bank’s stock valued at $47,000 after buying an additional 853 shares in the last quarter. JCSD Capital LLC purchased a new position in shares of Texas Capital Bancshares in the fourth quarter valued at $51,000. Toronto Dominion Bank purchased a new position in shares of Texas Capital Bancshares in the fourth quarter valued at $74,000. First Interstate Bank increased its position in shares of Texas Capital Bancshares by 39.3% in the fourth quarter. First Interstate Bank now owns 2,090 shares of the bank’s stock valued at $107,000 after buying an additional 590 shares in the last quarter. Finally, FMR LLC purchased a new position in shares of Texas Capital Bancshares in the third quarter valued at $129,000. Institutional investors and hedge funds own 98.50% of the company’s stock.
About Texas Capital Bancshares
Texas Capital Bancshares, Inc operates as the bank holding company for Texas Capital Bank, National Association that provides various banking products and services for commercial businesses, and professionals and entrepreneurs. It offers business deposit products and services, including commercial checking accounts, lockbox accounts, and cash concentration accounts, as well as other treasury management services, including information services, wire transfer initiation, ACH initiation, account transfer, and service integration; and consumer deposit products, such as checking accounts, savings accounts, money market accounts, and certificates of deposit.
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