In a recent transaction, Robert W. Stallings, a director at Texas Capital Bancshares Inc. (NASDAQ:TCBI), has made a significant purchase of company stock, according to the latest filings with the Securities and Exchange Commission. Stallings acquired shares worth approximately $468,447, with prices ranging from $19.02 to $58.72.
The transaction involved the purchase of Depositary Shares for Series B Preferred Stock as well as Common Stock. Specifically, Stallings bought 3,000 Depositary Shares at an average price of $19.36 and 5,000 more at an average price of $19.02. Additionally, he acquired 5,369 shares of Common Stock at an average price of $58.72. The Depositary Shares represent a 1/40th interest in a share of Texas Capital Bancshares' 5.75% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B.
The purchases were made through SCG Ventures LP, an entity indirectly owned by Stallings through various trusts and Stallings Management LLC. The transactions have increased Stallings' indirect holdings to 174,706 Depositary Shares and 84,369 shares of Common Stock following the transactions.
Investors often monitor insider buying as it can be a signal of confidence in the company's future prospects. The recent acquisition by Stallings could be interpreted as a positive sign for Texas Capital Bancshares, suggesting that a director with intimate knowledge of the company sees value in the stock at current levels.
Texas Capital Bancshares Inc., headquartered in Dallas, Texas, operates as a commercial bank, offering a variety of financial services to its customers. The company's shares are traded on the NASDAQ under the ticker symbol TCBI.
InvestingPro Insights
Following the notable insider purchase by director Robert W. Stallings, investors may find additional context in the company's financial metrics and analyst outlooks. Texas Capital Bancshares Inc. (NASDAQ:TCBI) is currently navigating the financial landscape with a market capitalization of approximately $2.77 billion. The company's stock is trading at a Price/Earnings (P/E) ratio of 17.72, which has slightly adjusted to 17.29 when considering the last twelve months as of Q1 2024. This valuation metric might suggest a relatively moderate expectation of future earnings growth compared to the broader market.
However, the company's performance in the past year has shown some challenges, with revenue growth experiencing a decline of 16.87% over the last twelve months as of Q1 2024. Despite this, Texas Capital Bancshares maintains a healthy operating income margin of 27.49%, indicating robust management of operating expenses relative to its gross profit.
From an investment perspective, one of the InvestingPro Tips indicates that although analysts have revised their earnings estimates downwards for the upcoming period, they still predict the company will be profitable this year. This aligns with the company's recent profitability over the past twelve months. Another tip to consider is the company's lack of dividend payments, which may influence investors seeking regular income streams.
For those interested in further investment analysis, there are additional InvestingPro Tips available at InvestingPro, providing deeper insights into Texas Capital Bancshares. To access these tips and enhance your investment strategy, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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