DA Davidson Raises FY2025 Earnings Forecast for Texas Capital Bancshares

On December 19th, stock analysts from DA Davidson raised their earnings per share (EPS) estimates for Texas Capital Bancshares, Inc. (NASDAQ:TCBI). In a report released to clients and investors, DA Davidson analyst P. Winter projected that the bank's earnings for FY2025 would reach $5.93 per share, an increase from the previous estimate of $5.79. The firm maintains a "Neutral" rating for the stock, alongside a target price of $81.00. For context, the consensus estimate for Texas Capital Bancshares' current full-year earnings stands at $4.15 per share.

Recent Earnings Performance

Texas Capital Bancshares announced its quarterly earnings results on October 17th, reporting earnings of $1.62 EPS for the quarter. This figure significantly exceeded the consensus estimate of $0.97 by $0.65. The company generated revenue of $304.91 million during the period, surpassing the consensus estimate of $279.64 million. Additionally, Texas Capital Bancshares achieved a net margin of 1.40% and a return on equity of 8.06% in this quarter.

Analyst Ratings and Price Targets

Other analysts have also provided updates on Texas Capital Bancshares. For instance, Raymond James upgraded the bank's stock from a "market perform" rating to an "outperform" rating, assigning a target price of $78.00 in a report dated September 17th. Similarly, Bank of America improved its rating from "underperform" to "buy," elevating their price target from $51.00 to $77.00 on September 9th. Research from Wedbush reaffirmed a "sector perform" rating on October 18th, while StockNews.com upgraded their stance from "sell" to "hold" on November 6th. Royal Bank of Canada also raised its price objective for Texas Capital Bancshares from $73.00 to $83.00, maintaining a "sector perform" rating. In total, four analysts classify the stock as a sell, nine as hold, and four as buy, according to MarketBeat.com, giving it an average rating of "Hold" and an average price target of $74.69.

Stock Performance and Metrics

As of the last trading session on Friday, Texas Capital Bancshares shares opened at $76.78. The stock has hovered around a fifty-day moving average of $83.08 and a 200-day moving average of $70.93. Over the past year, it reached a low of $54.68 and a high of $91.80. Its market capitalization stands at $3.55 billion, with a P/E ratio of 426.56 and a P/E/G ratio of 0.80. The bank has maintained a quick ratio and current ratio of 1.01 each, alongside a debt-to-equity ratio of 0.22.

Insider Transactions

In related insider activity, Director Robert W. Stallings acquired 20,000 shares of Texas Capital Bancshares stock on October 22nd. The shares were purchased at an average cost of $21.28 each, totaling $425,600.00. Following this transaction, Stallings holds 84,587 shares in the company, valued at approximately $1.8 million, representing a 30.97% increase in his position. This transaction has been reported to the Securities and Exchange Commission, which provides transparency into insider ownership.

Institutional Investor Activity

Institutional investors have shown varied interest in Texas Capital Bancshares recently. Innealta Capital LLC made a new investment in the bank during the second quarter, valued at $26,000. Blue Trust Inc. significantly increased its holdings by 89.9% in the third quarter, bringing its total ownership to 357 shares, also worth $26,000. Other firms such as Icon Wealth Advisors LLC, Meeder Asset Management Inc., and CWM LLC have similarly made investments in TCBI during recent quarters, with 96.88% of the stock currently held by institutional investors.

About Texas Capital Bancshares

Texas Capital Bancshares, Inc. is the bank holding company for Texas Capital Bank, providing a wide range of financial services. The company offers commercial and consumer banking solutions, investment banking services, wealth management offerings, and various financial sponsorship solutions tailored for businesses, entrepreneurs, and individual customers.

Earnings, Forecast, Stocks