Texas Capital Bancshares (NASDAQ:TCBI) Shares Gap Down on Disappointing Earnings

Texas Capital Bancshares, Inc. (NASDAQ:TCBI)’s stock price gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $65.15, but opened at $62.50. Texas Capital Bancshares shares last traded at $65.14, with a volume of 105,542 shares changing hands.

The bank reported $0.92 earnings per share for the quarter, missing analysts’ consensus estimates of $0.99 by ($0.07). Texas Capital Bancshares had a net margin of 3.99% and a return on equity of 9.14%. The business had revenue of $280.48 million for the quarter, compared to the consensus estimate of $284.40 million.

Analyst Ratings Changes

A number of research firms have recently commented on TCBI. StockNews.com raised Texas Capital Bancshares from a “sell” rating to a “hold” rating in a research note on Friday, January 31st. Hovde Group cut their price objective on shares of Texas Capital Bancshares from $90.00 to $84.00 and set a “market perform” rating on the stock in a research report on Friday, March 7th. Keefe, Bruyette & Woods reaffirmed an “outperform” rating and issued a $95.00 target price (down from $100.00) on shares of Texas Capital Bancshares in a report on Wednesday, January 29th. DA Davidson cut their price target on shares of Texas Capital Bancshares from $90.00 to $87.00 and set a “neutral” rating on the stock in a report on Friday, January 24th. Finally, Stephens decreased their price objective on shares of Texas Capital Bancshares from $102.00 to $97.00 and set an “overweight” rating for the company in a report on Tuesday, January 28th. Three analysts have rated the stock with a sell rating, eight have given a hold rating and four have given a buy rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $80.36.

Insider Buying and Selling at Texas Capital Bancshares

In other Texas Capital Bancshares news, Director Robert W. Stallings purchased 5,670 shares of the firm’s stock in a transaction on Friday, January 24th. The shares were acquired at an average cost of $27.60 per share, for a total transaction of $156,492.00. Following the completion of the transaction, the director now owns 180,893 shares of the company’s stock, valued at approximately $4,992,646.80. The trade was a 3.24 % increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Over the last 90 days, insiders have bought 29,402 shares of company stock valued at $653,787. 1.72% of the stock is owned by company insiders.

Institutional Investors Weigh In On Texas Capital Bancshares

Hedge funds and other institutional investors have recently modified their holdings of the stock. Wealth Enhancement Advisory Services LLC bought a new stake in Texas Capital Bancshares during the first quarter valued at about $528,000. SG Americas Securities LLC bought a new position in shares of Texas Capital Bancshares during the 1st quarter valued at approximately $16,938,000. GAMMA Investing LLC grew its stake in shares of Texas Capital Bancshares by 127.0% during the 1st quarter. GAMMA Investing LLC now owns 831 shares of the bank’s stock valued at $62,000 after acquiring an additional 465 shares during the period. Pallas Capital Advisors LLC purchased a new stake in Texas Capital Bancshares in the 1st quarter worth approximately $286,000. Finally, UMB Bank n.a. raised its stake in Texas Capital Bancshares by 1,089.8% during the 1st quarter. UMB Bank n.a. now owns 583 shares of the bank’s stock worth $44,000 after acquiring an additional 534 shares during the period. 96.88% of the stock is currently owned by hedge funds and other institutional investors.

Texas Capital Bancshares Price Performance

The firm has a market cap of $3.05 billion, a PE ratio of 51.59, a P/E/G ratio of 0.75 and a beta of 0.74. The firm’s fifty day simple moving average is $73.26 and its two-hundred day simple moving average is $78.01. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.22.

About Texas Capital Bancshares

Texas Capital Bancshares, Inc operates as the bank holding company for Texas Capital Bank, is a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs, and individual customers. The company offers commercial banking; consumer banking; investment banking solutions, including capital markets, mergers and acquisitions, and syndicated finance, as well as financial sponsor coverage, capital solutions, and institutional services; and wealth management services, such as investment management, financial planning, lockbox and insurance, securities-based lending, estate planning, and business succession, as well as philanthropic, trustee and executor, custom credit, and depository services.