Texas Capital Bancshares (NASDAQ:TCBI) Lifted to “Buy” at Zacks Investment Research

Texas Capital Bancshares (NASDAQ:TCBIGet Rating) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Wednesday, Zacks.com reports. The brokerage presently has a $58.00 price target on the bank’s stock. Zacks Investment Research‘s price objective would indicate a potential upside of 6.76% from the company’s current price.

According to Zacks, “Texas Capital has a decent surprise history with its earnings having surpassed the Zacks Consensus Estimate in three of the trailing four quarters, missing in one. The company’s strategic plan (announced in September 2021) intends to expand its product offerings and digitalize operations to drive fee income growth. It is also revving up its treasury business and is confident heading into 2022 to reach the 5% treasury solutions fee target of total revenues by 2025. Moreover, balance-sheet strength remains a key positive. Yet, shares of Texas Capital have underperformed the industry over the past three months. Although the Fed has increased rates and signaled more such hikes, the overall low-interest-rate environment is expected to keep margins subdued in the near term. Rising costs and a deteriorating asset quality are other major woes.”

Several other research analysts have also issued reports on the stock. StockNews.com upgraded shares of Texas Capital Bancshares from a “sell” rating to a “hold” rating in a research report on Wednesday, April 6th. Bank of America reiterated a “neutral” rating and issued a $69.00 price objective on shares of Texas Capital Bancshares in a report on Tuesday, January 18th. Finally, Raymond James decreased their price objective on Texas Capital Bancshares from $75.00 to $70.00 and set an “outperform” rating on the stock in a report on Friday, January 21st. Six analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $70.35.

Shares of NASDAQ:TCBI opened at $54.33 on Wednesday. The company has a debt-to-equity ratio of 1.08, a current ratio of 1.11 and a quick ratio of 1.11. Texas Capital Bancshares has a one year low of $53.22 and a one year high of $71.68. The company has a market cap of $2.75 billion, a price-to-earnings ratio of 11.84, a PEG ratio of 1.98 and a beta of 1.64. The firm has a fifty day moving average price of $62.48 and a two-hundred day moving average price of $61.69.

Texas Capital Bancshares (NASDAQ:TCBIGet Rating) last issued its quarterly earnings results on Thursday, January 20th. The bank reported $1.19 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.91 by $0.28. The firm had revenue of $225.49 million during the quarter, compared to the consensus estimate of $215.31 million. Texas Capital Bancshares had a return on equity of 9.00% and a net margin of 25.02%. During the same quarter last year, the company posted $1.14 EPS. Equities research analysts expect that Texas Capital Bancshares will post 3.42 EPS for the current fiscal year.

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Public Employees Retirement System of Ohio grew its position in shares of Texas Capital Bancshares by 9.1% in the 4th quarter. Public Employees Retirement System of Ohio now owns 1,867 shares of the bank’s stock worth $112,000 after buying an additional 156 shares during the last quarter. Amalgamated Bank increased its stake in shares of Texas Capital Bancshares by 0.5% in the 4th quarter. Amalgamated Bank now owns 34,604 shares of the bank’s stock worth $2,085,000 after acquiring an additional 164 shares in the last quarter. Profund Advisors LLC lifted its position in Texas Capital Bancshares by 5.2% during the 4th quarter. Profund Advisors LLC now owns 3,934 shares of the bank’s stock valued at $237,000 after acquiring an additional 196 shares during the period. Virginia Retirement Systems ET AL lifted its position in Texas Capital Bancshares by 5.7% during the 3rd quarter. Virginia Retirement Systems ET AL now owns 3,700 shares of the bank’s stock valued at $222,000 after acquiring an additional 200 shares during the period. Finally, State of Michigan Retirement System boosted its stake in Texas Capital Bancshares by 1.6% during the fourth quarter. State of Michigan Retirement System now owns 12,861 shares of the bank’s stock worth $775,000 after acquiring an additional 200 shares in the last quarter. 94.32% of the stock is currently owned by institutional investors.

Texas Capital Bancshares Company Profile (Get Rating)

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, and wealth management services.

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