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 research note issued 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.”

Other analysts also recently issued reports about the company. Stephens restated a “hold” rating on shares of Texas Capital Bancshares in a report on Thursday. Jefferies Financial Group downgraded Texas Capital Bancshares from a “buy” rating to a “hold” rating in a report on Tuesday, January 8th. Compass Point downgraded Texas Capital Bancshares from a “buy” rating to a “neutral” rating and set a $58.49 price objective for the company. in a report on Thursday. Wedbush downgraded Texas Capital Bancshares from an “outperform” rating to a “neutral” rating and set a $65.00 price objective for the company. in a report on Wednesday, March 27th. Finally, Barclays upgraded Texas Capital Bancshares from an “equal weight” rating to an “overweight” rating and set a $70.00 price objective for the company in a report on Thursday, January 10th. Two equities research analysts have rated the stock with a sell rating, eleven have issued a hold rating and four have issued a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and a consensus target price of $87.75.

TCBI stock opened at $62.63 on Monday. The company has a quick ratio of 1.23, a current ratio of 1.30 and a debt-to-equity ratio of 1.64. The stock has a market capitalization of $3.15 billion, a P/E ratio of 10.82, a PEG ratio of 0.97 and a beta of 1.77. Texas Capital Bancshares has a 1-year low of $47.86 and a 1-year high of $103.05.

Texas Capital Bancshares (NASDAQ:TCBI) last released its quarterly earnings data on Wednesday, April 17th. The bank reported $1.60 earnings per share for the quarter, beating the consensus estimate of $1.34 by $0.26. The firm had revenue of $265.63 million during the quarter, compared to the consensus estimate of $253.83 million. Texas Capital Bancshares had a return on equity of 13.37% and a net margin of 23.36%. During the same period in the previous year, the company posted $1.38 earnings per share. On average, sell-side analysts anticipate 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 business’s stock in a transaction dated Wednesday, March 6th. The shares were 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 directly owns 35,008 shares in the company, valued at $2,146,340.48. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Ian J. Turpin sold 1,294 shares of the business’s stock in a transaction dated Thursday, February 28th. The stock was sold at an average price of $60.72, for a total transaction of $78,571.68. Following the completion of the transaction, the director now owns 8,102 shares of the company’s stock, valued at $491,953.44. The disclosure for this sale can be found here. Insiders own 0.54% of the company’s stock.

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

Texas Capital Bancshares Company Profile

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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