Dallas, TX – In a recent transaction, Robert W. Stallings, a director at Texas Capital Bancshares Inc. (NASDAQ:TCBI), acquired additional shares in the company, signaling his confidence in the bank's future prospects. The purchase, which took place on May 7, 2024, involved 3,000 depositary shares for Series B Preferred Stock, amounting to a total of $59,100. The average price per share for this transaction was $19.70, with prices ranging from $19.61 to $19.70.
This latest acquisition increases Stallings' indirect ownership through SCG Ventures LP to a total of 153,706 shares of the said preferred stock. Additionally, SCG Ventures LP holds 79,000 shares of Texas Capital Bancshares' common stock. The Stallings Foundation, a charitable organization with Stallings as an officer, also holds 5,000 depositary shares of Series B Preferred Stock.
The depositary shares represent a 1/40th interest in a share of the issuer's 5.75% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B. SCG Ventures LP's stake is divided amongst the RWS Investment Trust, the LES Investment Trust, and Stallings Management LLC, with Mr. and Mrs. Stallings being the sole owners of the management company.
Investors often view insider purchases as a positive sign that company executives believe in the firm's growth potential and financial health. Texas Capital Bancshares, a commercial bank headquartered in Dallas, Texas, continues to attract attention from its board members with these latest transactions.
InvestingPro Insights
Amidst the recent insider purchase by Robert W. Stallings, Texas Capital Bancshares Inc. (NASDAQ:TCBI) presents a mixed financial outlook according to InvestingPro data and insights. The company's market capitalization stands at approximately $2.83 billion, reflecting a notable presence in the financial sector. Meanwhile, the P/E ratio, a measure of the company's current share price relative to its per-share earnings, is 18.16, with a slight adjustment in the last twelve months as of Q1 2024 to 17.74. This suggests a market valuation that is in line with the company's earnings performance.
However, it's worth noting that Texas Capital Bancshares has experienced a revenue decline of 16.87% over the last twelve months as of Q1 2024. This downward trend is mirrored in the quarterly revenue growth figure, which has contracted by 3.03% in Q1 2024. Despite these challenges, the company has maintained a robust operating income margin of 27.49%, indicating efficient management of its operating expenses relative to its gross profit.
InvestingPro Tips highlight that while analysts have revised their earnings expectations downwards for the upcoming period, they still predict that Texas Capital Bancshares will remain profitable this year. This aligns with the company's performance over the last twelve months, where it has remained profitable. However, the bank does not pay a dividend to shareholders, which might be a consideration for income-focused investors. For those looking to delve deeper into the financial health and future prospects of Texas Capital Bancshares, InvestingPro offers additional insights and tips. There are currently 4 more InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/TCBI. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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