Shares of Texas Capital Bancshares, Inc. (NASDAQ:TCBI) have been rated as a “Hold” by a consensus of analysts, according to a recent report from Marketbeat Ratings. Fourteen analysts are currently covering the company, with three issuing a sell recommendation, seven suggesting a hold, and four advocating for a buy.
The average one-year price target for Texas Capital Bancshares is set at $88.10. Recent evaluations from various research firms provide insight into the stock’s current standing. For instance, DA Davidson maintained a “neutral” rating and established a price target of $91.00 in a report dated November 20, 2023. Similarly, JPMorgan Chase & Co. increased their target from $90.00 to $92.00, while assigning an “underweight” rating in their October 23 report.
Analysts at Zacks Research adjusted their outlook on October 9, downgrading Texas Capital from a “strong-buy” to a “hold.” Meanwhile, Keefe, Bruyette & Woods raised their target price from $98.00 to $100.00, giving an “outperform” rating in a report released on October 27. Additionally, Cowen initiated coverage on the stock with a “hold” recommendation on September 24.
Recent Earnings Performance
Texas Capital Bancshares recently announced its earnings results for the third quarter of 2023 on October 22. The bank reported earnings of $2.18 per share, exceeding analysts’ consensus estimate of $1.77 by $0.41. The company achieved a net margin of 15.14% and a return on equity of 9.51%. Revenue for the quarter reached $340.35 million, surpassing the expected $327.13 million. This marks a substantial increase of 171.6% in quarterly revenue compared to the same period last year.
Analysts predict that Texas Capital Bancshares will report an earnings per share (EPS) of $5.84 for the current fiscal year.
Insider Activity and Institutional Investments
In related news, Director Robert W. Stallings acquired 5,000 shares of Texas Capital Bancshares on October 27. The shares were purchased at an average price of $20.68 each, amounting to a total investment of $103,400. Following this transaction, Stallings now owns 275,913 shares valued at approximately $5,705,880.84, reflecting a 1.85% increase in his holdings. This acquisition has been disclosed in a filing with the Securities and Exchange Commission.
Institutional investors have also been active in adjusting their positions in Texas Capital Bancshares. T. Rowe Price Investment Management Inc. increased its stake by 0.8% during the first quarter, now holding 3,332,471 shares valued at $248,936,000. AQR Capital Management LLC boosted its holdings by 25.1% in the third quarter, acquiring an additional 384,748 shares for a total of 1,919,194 shares worth $162,229,000.
Other significant investors include Azora Capital LP and Massachusetts Financial Services Co., which also expanded their positions during the same period. Currently, approximately 96.88% of Texas Capital Bancshares stock is owned by hedge funds and institutional investors.
Texas Capital Bancshares operates as a full-service financial institution, providing a range of services including commercial and consumer banking, investment banking solutions, and wealth management services. With its commitment to delivering tailored financial solutions, the company continues to play a significant role in the banking sector.
