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Robert W. Stallings, a director at Texas Capital Bancshares Inc. (NASDAQ:TCBI), recently acquired additional depositary shares for Series B Preferred Stock, according to a recent SEC filing. On March 12 and 13, Stallings purchased a total of 3,000 shares, with transaction prices ranging from $19.90 to $20.40 per share. The total value of these transactions amounted to approximately $60,200. The insider buying comes as the stock, currently trading at $74.65, has declined 8.62% year-to-date. According to InvestingPro analysis, the bank is currently trading above its Fair Value.
Following these acquisitions, Stallings holds 218,413 depositary shares indirectly through SCG Ventures LP and 49,500 shares through the Stallings Foundation. Additionally, he directly owns 84,587 depositary shares and 283,631 shares of common stock in Texas Capital Bancshares. The $3.42B market cap bank trades at a P/E ratio of 57.45x, with InvestingPro data showing strong returns over the past five years despite recent market volatility. Discover 6 more exclusive InvestingPro Tips and comprehensive analysis in the Pro Research Report.
In other recent news, Texas Capital Bancshares reported strong fourth-quarter 2024 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $1.59, significantly higher than the forecasted $1.09. The bank’s revenue also exceeded projections, reaching $305 million against a forecast of $283.24 million. Following the release of the earnings report, Stephens adjusted the price target for Texas Capital Bancshares to $97, down from $102, but maintained an Overweight rating, indicating confidence in the bank’s financial outlook. Meanwhile, DA Davidson revised their price target to $87 from $90, maintaining a Neutral rating due to concerns about increased expenses and diminished net interest income growth.
Texas Capital Bancshares has provided updated guidance for 2025, forecasting a stronger fee outlook with an estimate of $270 million, compared to the previous $240 million guidance. The bank anticipates higher operating expense growth but reaffirms its target of a 1.10% return on assets (ROA) in the second half of 2025. Despite the positive earnings report, DA Davidson lowered its EPS estimate for 2026 to $6.43, a decrease of $0.23, reflecting the revised price target. Texas Capital’s strategic actions and revenue outlook have been crucial in maintaining its return on average assets (ROAA) target, although the initial ROA for the first quarter is expected to start weaker at 0.6%.
Stephens noted that the initial dip in the stock price might have been a reaction to unforeseen additional investment spending. However, analysts suggest that the bank’s 2025 revenue guidance could see further improvements later in the year, potentially driven by fees generated from recent investments. Texas Capital Bancshares’ investment banking platform and treasury solutions have continued to drive growth, while the private wealth business is set for full development by year-end. The bank’s strategic investments are expected to yield operational efficiency and mitigate potential risks, as highlighted by CEO Rob Holmes and CFO Matt Scurlock during the earnings call.
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