Texas Capital Bancshares (TCBI) Stock Rating Upgraded by Zacks Investment Research

Texas Capital Bancshares (NASDAQ:TCBI) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Monday, Zacks.com reports.

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. The company’s first-quarter 2019 earnings reflected rise in revenues, aided by higher loans and deposit balances. However, provisions and expenses escalated. Texas Capital’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 anticipated to drive top-line growth.”

TCBI has been the topic of a number of other research reports. Compass Point cut shares of Texas Capital Bancshares from a “buy” rating to a “neutral” rating and set a $58.49 target price on the stock. in a research note on Thursday. Stephens restated a “hold” rating on shares of Texas Capital Bancshares in a research note on Thursday. Wedbush cut shares of Texas Capital Bancshares from an “outperform” rating to a “neutral” rating and set a $65.00 target price on the stock. in a research note on Wednesday, March 27th. Barclays upgraded shares of Texas Capital Bancshares from an “equal weight” rating to an “overweight” rating and set a $70.00 target price on the stock in a research note on Thursday, January 10th. Finally, Jefferies Financial Group cut shares of Texas Capital Bancshares from a “buy” rating to a “hold” rating in a research note on Tuesday, January 8th. Two analysts have rated the stock with a sell rating, eleven have given a hold rating and four have given a buy rating to the company. The stock currently has an average rating of “Hold” and a consensus price target of $87.75.

Shares of NASDAQ:TCBI opened at $62.63 on Monday. Texas Capital Bancshares has a twelve month low of $47.86 and a twelve month high of $103.05. The company has a current ratio of 1.30, a quick ratio of 1.23 and a debt-to-equity ratio of 1.64. The company has a market capitalization of $3.15 billion, a PE ratio of 10.82, a price-to-earnings-growth ratio of 0.97 and a beta of 1.77.

Texas Capital Bancshares (NASDAQ:TCBI) last issued its quarterly earnings data on Wednesday, April 17th. The bank reported $1.60 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.34 by $0.26. Texas Capital Bancshares had a net margin of 23.36% and a return on equity of 13.37%. The firm had revenue of $265.63 million for the quarter, compared to analysts’ expectations of $253.83 million. During the same quarter in the prior year, the business earned $1.38 EPS. As a group, analysts expect that Texas Capital Bancshares will post 6.26 EPS for the current fiscal year.

In other Texas Capital Bancshares news, Director Steve Rosenberg sold 2,305 shares of the stock in a transaction that occurred on Wednesday, March 6th. The shares were sold at an average price of $61.31, for a total transaction of $141,319.55. Following the completion of the sale, the director now directly owns 35,008 shares of the company’s stock, valued at approximately $2,146,340.48. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Ian J. Turpin sold 1,294 shares of the stock in a transaction that occurred on Thursday, February 28th. The shares were sold at an average price of $60.72, for a total transaction of $78,571.68. Following the sale, the director now directly owns 8,102 shares of the company’s stock, valued at $491,953.44. The disclosure for this sale can be found here. Company insiders own 0.54% of the company’s stock.

Institutional investors and hedge funds have recently made changes to their positions in the business. Louisiana State Employees Retirement System grew its holdings in shares of Texas Capital Bancshares by 1.5% in the first quarter. Louisiana State Employees Retirement System now owns 13,500 shares of the bank’s stock valued at $737,000 after purchasing an additional 200 shares in the last quarter. Retirement Systems of Alabama grew its holdings in shares of Texas Capital Bancshares by 0.4% in the fourth quarter. Retirement Systems of Alabama now owns 65,065 shares of the bank’s stock valued at $3,324,000 after purchasing an additional 243 shares in the last quarter. Oregon Public Employees Retirement Fund grew its holdings in shares of Texas Capital Bancshares by 1.3% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 19,845 shares of the bank’s stock valued at $1,014,000 after purchasing an additional 245 shares in the last quarter. Legal & General Group Plc grew its holdings in shares of Texas Capital Bancshares by 0.5% in the third quarter. Legal & General Group Plc now owns 60,593 shares of the bank’s stock valued at $5,008,000 after purchasing an additional 299 shares in the last quarter. Finally, American International Group Inc. grew its holdings in shares of Texas Capital Bancshares by 0.3% in the fourth quarter. American International Group Inc. now owns 102,465 shares of the bank’s stock valued at $5,235,000 after purchasing an additional 322 shares in the last quarter. 98.50% of the stock is owned by institutional investors and hedge funds.

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.

See Also: Cost of Equity

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Analyst Recommendations for Texas Capital Bancshares (NASDAQ:TCBI)

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