Zacks Investment Research Lowers Texas Capital Bancshares (NASDAQ:TCBI) to Hold

Zacks Investment Research lowered shares of Texas Capital Bancshares (NASDAQ:TCBI) from a buy rating to a hold rating in a research note issued to investors on Tuesday, Zacks.com reports. They currently have $62.00 target price on the bank’s stock.

According to Zacks, “Shares of Texas Capital have outperformed the industry, over the past six months. Yet, the company has a disappointing earnings surprise history, beating the Zacks Consensus Estimate in only one of the trailing four quarters. Texas Capital’s persistently rising expenses, mainly due to the hiring of experienced bankers, is likely to impede bottom-line growth to some extent. Moreover, lack of diversification in loan portfolio is a concern. However, growth in revenues, supported my favorable interest rates, is a tailwind. Further, the company’s diversified fee income sources are likely to support the bottom-line expansion. Additionally, rising loans and deposits balance, backed by a gain in market share depicts a strong capital position which would help the company undertake opportunistic expansions in the long haul.”

Several other brokerages also recently weighed in on TCBI. Wedbush downgraded shares of Texas Capital Bancshares from an outperform rating to a neutral rating and set a $65.00 target price for the company. in a research note on Wednesday, March 27th. Stephens reissued a hold rating on shares of Texas Capital Bancshares in a research note on Thursday, April 18th. Sanford C. Bernstein raised shares of Texas Capital Bancshares from a market perform rating to an outperform rating in a research note on Tuesday, May 28th. TheStreet raised shares of Texas Capital Bancshares from a c+ rating to a b- rating in a research note on Tuesday, April 30th. Finally, Piper Jaffray Companies downgraded shares of Texas Capital Bancshares from an overweight rating to a neutral rating and cut their target price for the company from $71.50 to $64.50 in a research note on Friday, June 7th. Two investment analysts have rated the stock with a sell rating, ten have issued a hold rating and four have issued a buy rating to the stock. The company has a consensus rating of Hold and an average price target of $77.25.

Shares of TCBI stock opened at $59.50 on Tuesday. Texas Capital Bancshares has a twelve month low of $47.86 and a twelve month high of $101.85. The stock has a market capitalization of $2.95 billion, a P/E ratio of 10.28, a PEG ratio of 0.88 and a beta of 1.84. The company has a debt-to-equity ratio of 1.64, a current ratio of 1.30 and a quick ratio of 1.21.

Texas Capital Bancshares (NASDAQ:TCBI) last announced its earnings results 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. 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 during the quarter, compared to the consensus estimate of $253.83 million. During the same quarter in the previous year, the company posted $1.38 EPS. On average, analysts expect that Texas Capital Bancshares will post 6.46 EPS for the current year.

In other news, Director Ian J. Turpin sold 3,977 shares of the company’s stock in a transaction dated Monday, May 20th. The shares were sold at an average price of $60.59, for a total transaction of $240,966.43. Following the completion of the transaction, the director now owns 4,632 shares of the company’s stock, valued at approximately $280,652.88. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CEO C Keith Cargill acquired 3,000 shares of the company’s stock in a transaction dated Thursday, May 23rd. The shares were bought at an average cost of $58.83 per share, with a total value of $176,490.00. Following the purchase, the chief executive officer now owns 120,847 shares in the company, valued at $7,109,429.01. The disclosure for this purchase can be found here. Corporate insiders own 0.54% of the company’s stock.

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc grew its position in Texas Capital Bancshares by 2.6% in the third quarter. Vanguard Group Inc now owns 4,540,983 shares of the bank’s stock worth $375,312,000 after acquiring an additional 114,580 shares in the last quarter. Arizona State Retirement System boosted its holdings in shares of Texas Capital Bancshares by 1.1% during the fourth quarter. Arizona State Retirement System now owns 36,018 shares of the bank’s stock worth $1,840,000 after purchasing an additional 403 shares during the period. Rhumbline Advisers raised its stake in Texas Capital Bancshares by 27.6% in the fourth quarter. Rhumbline Advisers now owns 138,941 shares of the bank’s stock worth $7,098,000 after buying an additional 30,025 shares in the last quarter. Canada Pension Plan Investment Board raised its stake in Texas Capital Bancshares by 3,303.2% in the fourth quarter. Canada Pension Plan Investment Board now owns 211,000 shares of the bank’s stock worth $10,779,000 after buying an additional 204,800 shares in the last quarter. Finally, Comerica Bank raised its stake in Texas Capital Bancshares by 74.6% in the fourth quarter. Comerica Bank now owns 287,000 shares of the bank’s stock worth $17,492,000 after buying an additional 122,659 shares in the last quarter. 95.95% of the stock is owned by hedge funds and other institutional investors.

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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