Texas Capital Bancshares (NASDAQ:TCBI) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued to investors on Monday, Zacks.com reports. The brokerage presently has a $58.00 price target on the bank’s stock. Zacks Investment Research‘s price target would indicate a potential upside of 4.49% from the stock’s previous close.
According to Zacks, “Shares of Texas Capital have underperformed the industry, over the past six months. Also, the company has a dismal earnings surprise history, having beaten the Zacks Consensus Estimate in only one of the trailing four quarters. Third-quarter 2019 results reflected high revenues and elevated costs. Growth in revenues, supported by rise in net interest income, is a tailwind. Also, rising loans and deposits balance, backed by a gain in market share, suggests a strong capital position which would help the company undertake opportunistic expansions over the long haul. Yet, Texas Capital’s persistently rising costs, due to hiring of experienced bankers, is likely to impede its bottom-line growth. Also, deterioration of credit quality, lack of geographical diversification and significant exposure to commercial and real estate loans remain headwinds.”
A number of other research firms have also commented on TCBI. ValuEngine upgraded Texas Capital Bancshares from a “sell” rating to a “hold” rating in a research note on Wednesday, October 2nd. Stephens reiterated a “hold” rating and issued a $56.00 price objective on shares of Texas Capital Bancshares in a research note on Thursday, October 17th. BidaskClub upgraded Texas Capital Bancshares from a “strong sell” rating to a “sell” rating in a research note on Thursday, September 12th. Raymond James lowered Texas Capital Bancshares from an “outperform” rating to a “market perform” rating in a research note on Thursday, August 29th. Finally, UBS Group lowered Texas Capital Bancshares from a “neutral” rating to a “sell” rating and dropped their price objective for the stock from $62.00 to $52.00 in a research note on Monday, August 5th. Three research analysts have rated the stock with a sell rating, nine have assigned a hold rating and two have given a buy rating to the stock. Texas Capital Bancshares currently has a consensus rating of “Hold” and an average target price of $59.89.
Texas Capital Bancshares (NASDAQ:TCBI) last posted its earnings results on Wednesday, October 16th. The bank reported $1.70 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.49 by $0.21. Texas Capital Bancshares had a return on equity of 12.95% and a net margin of 22.29%. The company had revenue of $272.47 million for the quarter, compared to analyst estimates of $262.12 million. During the same period last year, the company earned $1.65 earnings per share. On average, equities analysts expect that Texas Capital Bancshares will post 6.17 EPS for the current year.
Institutional investors and hedge funds have recently modified their holdings of the stock. Zeke Capital Advisors LLC increased its position in shares of Texas Capital Bancshares by 55.3% in the 3rd quarter. Zeke Capital Advisors LLC now owns 16,366 shares of the bank’s stock valued at $894,000 after buying an additional 5,826 shares in the last quarter. State of Alaska Department of Revenue increased its position in shares of Texas Capital Bancshares by 57.0% in the 3rd quarter. State of Alaska Department of Revenue now owns 8,937 shares of the bank’s stock valued at $488,000 after buying an additional 3,243 shares in the last quarter. LBJ Family Wealth Advisors Ltd. increased its position in shares of Texas Capital Bancshares by 13.9% in the 3rd quarter. LBJ Family Wealth Advisors Ltd. now owns 26,985 shares of the bank’s stock valued at $1,475,000 after buying an additional 3,292 shares in the last quarter. Treasurer of the State of North Carolina increased its position in shares of Texas Capital Bancshares by 13.7% in the 2nd quarter. Treasurer of the State of North Carolina now owns 24,678 shares of the bank’s stock valued at $1,514,000 after buying an additional 2,980 shares in the last quarter. Finally, Natixis bought a new stake in shares of Texas Capital Bancshares in the 2nd quarter valued at $7,340,000. Hedge funds and other institutional investors own 95.35% 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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