Texas Capital Bancshares Inc. (TCBI) shares are trading at higher $43.99 and the avg recommendation for the stock is Hold, while the current analyst price target stands at $34.54.
To add more color to this target, the company’s high over the last year is $64.88 and the low is $19.10. Over the last 52 weeks, TCBI is down -22.06% while the S&P 500 is up 7.73%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, TCBI reported a profit of $207.57 million. Texas Capital Bancshares Inc. also saw revenues increase to $243.73 million. In addition, TCBI has free cash flow of $2.17 billion as of 09-2020.
TCBI booked profit margins of 6.20%, its Return on Equity (ROE) is 2.70%, and its Return on Assets is 0.20%. All told, it is clear that, TCBI needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. TCBI has a short ratio of 3.91 and outstanding shares of 50.45M.
TCBI has seen increased volume after this news and investors are putting their support behind the value proposition. Traders will also note the company’s earnings per share came in at 1.39. Investors should also keep an eye on sector updates as TCBI has historically followed its peers on positive news.
All told, Texas Capital Bancshares Inc. TCBI has strung together solid data and demonstrated underlying fundamentals. At its current valuation, TCBI represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Texas Capital Bancshares Inc. TCBI is now commanding a market cap of 2.12B and a float of 50.10M. TCBI is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of TCBI stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in TCBI, either long or short, and we have not been compensated for this article.