Insider Activity Report: Texas Capital Bancshares (TCBI)

Robert Stallings, a director at Texas Capital Bancshares (TCBI), recently bought 12,000 shares. The buy increased his holdings by 3 percent, and came to a total cost of $227,260.

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  • The director has been a regular buyer over the past few months, including over 11,000 shares in December and 13,000 shares in November and October. The company’s Chief Administrative officer has also been a buyer in the past year, picking up 1,110 shares for just over $49,000.

    Overall, TCBI insiders own 1.2 percent of shares.

    The bank has traded flat over the past year. Rising interest rates and a slow lending environment led to earnings dropping a massive 90 percent last year. Revenues also fell by more than half.

    With lending conditions easing, the bank may be set up for a relief rally this year. Shares are a bit pricey at 16 times earnings, but earnings could rise faster than the share price over the next few quarters.

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  • At current prices, the bank also trades right at its book value.

    Action to take: While shares are flat over the past year, they’ve been trending higher since May. That trend is likely to continue. At present, TCBI does not pay a dividend.

    For traders, the June $65 calls, last going for about $4.80 offer mid-double-digit returns on a further slow rally higher in shares in the next half year.


    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.

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