Robert Stallings, a director at Texas Capital Bancshares (TCBI), recently bought 7,676 shares. The buy increased his stake by 1%, and came to a total cost of $198,597.
Stallings has been a steady buyer of shares, having last bought 20,000 shares for just over $425,000 in October, and more than two dozen other buys over the past two years. Another company director was also a buyer of shares last year, and the last insider sale was in November 2023.
Overall, Texas Capital Bancshares insiders own 1.6% of shares.
The regional bank is up 28% over the past year, just slightly edging out the S&P 500’s return. However, shares are still well off their all-time highs, thanks to the regional bank selloff in early 2023.
However, the bank still continues to struggle operationally. Revenues slid by 55% last year and overall growth was negative. Thanks to rallying shares, the bank trades at about 1.1 times its book value, a slight premium to the value of the bank’s book of loans.
Action to take: Momentum investors may like Texas Capital shares, as bank stocks continue to trend higher. Currently, TCBI does not pay a dividend, so income investors may want to look elsewhere.
For traders, the March $85 calls, last trading with a bid/ask spread of about $3.30, could see mid double-digit returns from a further trend higher in the weeks ahead.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.