In a recent transaction, Robert W. Stallings, a director of Texas Capital Bancshares Inc. (NASDAQ:TCBI), acquired additional shares in the company. The transaction, which occurred over two days, involved the purchase of depositary shares representing an interest in the company's Series B Preferred Stock.
Stallings completed the acquisition of 4 shares at a price of $19.40 each on May 16, followed by 996 shares at an average price of $19.53 on May 17. The total investment for these transactions amounted to approximately $19,529.
The shares acquired by Stallings are part of the depositary shares for Texas Capital Bancshares' Series B Preferred Stock, each representing a 1/40th interest in the company's 5.75% Fixed Rate Non-Cumulative Perpetual Preferred Stock, with a par value of $.01 per share.
Investors should note that the prices paid for the shares ranged from $19.40 to $19.53, with the higher price reflecting an average based on a small range of prices. Further details on the exact number of shares bought at each price point can be provided upon request.
Following these transactions, Stallings' indirect ownership in the depositary shares for Series B Preferred Stock, through SCG Ventures LP, has increased to a total of 157,706 shares. SCG Ventures LP is connected to Stallings through various family trusts and a management company.
Additionally, Stallings is associated with the Stallings Foundation, a charitable organization where he serves as an officer. The foundation holds 5,000 depositary shares for Series B Preferred Stock.
These transactions were disclosed in a filing with the Securities and Exchange Commission, which provides transparency into the trading activities of company insiders.
InvestingPro Insights
Amidst the insider trading activity at Texas Capital Bancshares Inc. (NASDAQ:TCBI), investors and potential shareholders may be interested in the company's financial outlook and performance metrics. According to InvestingPro, analysts have recently revised their earnings expectations downwards for the upcoming period, indicating a cautious stance towards the company's short-term profitability. This aligns with the observed weakness in gross profit margins, which could be a factor influencing the director's decision to increase his stake in the company.
On a positive note, analysts maintain a consensus that TCBI will remain profitable this year, as evidenced by its profitability over the last twelve months. It's worth noting that the company does not pay dividends, potentially reinvesting profits back into the business for growth or to strengthen its financial position. The following real-time metrics from InvestingPro may further illuminate the company's financial health:
- Market Capitalization (Adjusted): $2.86 billion USD
- Price-to-Earnings (P/E) Ratio (Adjusted as of Q1 2024): 17.92
- Revenue Growth (Quarterly as of Q1 2024): -3.03%
While the recent insider purchases by Robert W. Stallings reflect a vote of confidence in the bank's future, the data suggests a nuanced picture. Investors considering following this insider's lead may benefit from the additional 21 InvestingPro Tips available, which provide deeper insights into Texas Capital Bancshares' financials and market performance. For those looking to delve further into these analytics, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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