Hennessy Advisors Inc. recently disclosed that it has increased its position in Texas Capital Bancshares, Inc. by 16.3% during the second quarter of this year. According to a filing with the Securities & Exchange Commission, the firm now owns 50,000 shares of the bank’s stock after acquiring an additional 7,000 shares in that time period. The total value of these shares amounts to approximately $2,575,000.
This news comes as Hennessy Advisors Inc. demonstrates confidence in Texas Capital Bancshares’ performance and future prospects. By increasing their stake in the company, Hennessy Advisors Inc. is signaling its belief that the bank is poised for growth and can deliver favorable returns to its investors.
Texas Capital Bancshares recently released its quarterly earnings data on July 20th, impressing analysts with its strong performance. The bank reported earnings per share of $1.33 for the quarter, exceeding analysts’ expectations of $0.95 by $0.38 per share.
Additionally, Texas Capital Bancshares recorded revenue of $447.93 million for the quarter, surpassing analyst estimates of $269.61 million by a significant margin. This robust financial performance further supports Hennessy Advisors Inc.’s decision to increase its stake in the company.
Furthermore, Texas Capital Bancshares achieved a net margin of 19.60% and a return on equity of 7.23%. These impressive figures indicate the bank’s ability to generate profits while effectively managing its shareholders’ investments.
The positive quarterly results are also indicative of Texas Capital Bancshares’ ongoing commitment to providing value to its customers and shareholders alike.
As we move forward into the rest of the fiscal year, sell-side analysts predict that Texas Capital Bancshares will continue to deliver solid financial performance and expect earnings per share of around $4.17 for this year.
In conclusion, Hennessy Advisors Inc.’s decision to raise its position in Texas Capital Bancshares demonstrates its confidence in the bank’s performance and future prospects. The impressive quarterly earnings, exceeding analysts’ expectations, further validate this positive sentiment. With a solid net margin and return on equity figures, Texas Capital Bancshares appears well-positioned for continued growth and success.
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Institutional Investors Show Confidence in Texas Capital Bancshares as Stock Ownership and Insider Buying Increase
Institutional investors have been making modifications to their holdings of Texas Capital Bancshares, a banking institution listed on NASDAQ under the ticker symbol TCBI. One of these institutional investors, Rockefeller Capital Management L.P., has grown its position in the company by 25% during the fourth quarter. This growth is reflected in their ownership of 1,049 shares of Texas Capital Bancshares stock, currently valued at approximately $63,000. By purchasing an additional 210 shares in the last quarter, Rockefeller Capital Management L.P. has demonstrated confidence in the bank’s performance and potential for future growth.
Another institution that has increased its position in Texas Capital Bancshares is Allspring Global Investments Holdings LLC. They lifted their position by 11.6% during the first quarter, now owning 2,233 shares worth around $109,000. Similarly, HighTower Advisors LLC also saw an increase in their holdings of Texas Capital Bancshares stock by 2.8% during the fourth quarter, owning 9,770 shares valued at $589,000.
Mirae Asset Global Investments Co. Ltd., a global investment management firm, raised its position in Texas Capital Bancshares by 1.3% during the first quarter and now owns 21,744 shares worth $1,065,000. Finally, US Bancorp DE increased its position significantly by 64.7% during the first quarter and currently holds 771 shares valued at $38,000.
The data reveals that a staggering 96.88% of Texas Capital Bancshares’ stock is owned by institutional investors and hedge funds collectively—an overwhelmingly positive sign for any firm that seeks stability and trust from these influential financial stakeholders.
Several equities research analysts have shared their insights regarding this banking institution as well. StockNews.com recently initiated coverage on Texas Capital Bancshares with a “sell” rating attached to it based on their analysis conducted on August 17th. Raymond James, a well-known financial services firm, provided a more positive outlook on the company by upping their target price from $65.00 to $74.00 and assigning a “strong-buy” rating in their report disseminated on July 21st.
However, not all analysts share the same optimism. Truist Financial decreased its target price from $64.00 to $58.00 in a research report published on June 29th. Additionally, Wedbush took a neutral stance on Texas Capital Bancshares but raised the target price from $55.00 to $70.00 in their analysis released on July 21st. JPMorgan Chase & Co., too, adjusted their price target by increasing it from $52.0 to $56.00 on June 29th.
These varying opinions show that the consensus rating for Texas Capital Bancshares’ stock is labeled as “Hold,” according to data obtained from Bloomberg.com which also indicates an average target price of $62.00.
Moving on to other notable news related to Texas Capital Bancshares, one of its directors named Robert W. Stallings, engaged in stock acquisition activity during August 17th by buying 1,000 shares at an average price of $59.87 per share—a total transaction value of approximately $59,870. Following this purchase, Stallings now owns 265,000 shares of the bank’s stock valued at roughly $15,865,550.
Similarly, Stallings acquired an additional 2,000 shares of Texas Capital Bancshares stock through another transaction that occurred on July 25th at an average price of $61.98 per share—a total cost amounting to approximately $123,960.
Overall, inside sources reveal that company insiders purchased a total of 10,000 shares within the last three months—totaling around $609,600 in value—and currently own approximately 0.99% of Texas Capital Bancshares.
As for the stock performance, Texas Capital Bancshares opened at $60.15 on September 26, 2023. It has been observed that the fifty-day moving average price is $61.94 and the two hundred-day moving average is $54.79. Over the past year, the bank’s stock has seen a low of $42.79 and a high of $69.26.
Considering its fundamentals, Texas Capital Bancshares demonstrates a debt-to-equity ratio of 0.31 and maintains ratios of 1.00 for both current and quick ratios—a healthy sign indicating robust liquidity to cover short-term financial obligations promptly.
With a market capitalization of $2.89 billion and a relatively low price-to-earnings ratio of 8.59, Texas Capital Bancshares seems undervalued compared to industry peers—a factor that may attract value investors looking for potential opportunities within the banking sector.
Furthermore, the company’s price-to-earnings-growth (PEG) ratio stands at 1.78—an additional metric often employed by investors to assess a stock’s valuation relative to its projected earnings growth over time—for providing further context in evaluating its investment potential.
Lastly, it is worth noting that Texas
