City (NASDAQ:CHCO) Stock Gets Price Target Increase from Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods raised City’s price target from $145 to $147 while maintaining a “market perform” rating, implying approximately 3.52% upside from the prior close. Analysts overall assign the stock a “Moderate Buy” rating with an average target of $140.
• City exceeded quarterly expectations, reporting earnings of $2.43 per share versus the $2.36 consensus estimate and revenue of $84.04 million versus $83.07 million expected. The bank posted a 32.58% net margin and 16.34% return on equity.
• CHCO shares closed at $142, near their 52-week high of $148.99, while institutional investors own 72.43% of the stock. Company insiders, including the CEO and a director, recently sold shares, though insiders still own 1.75% of the company.

City (NASDAQ:CHCO - Get Free Report) had its price objective boosted by investment analysts at Keefe, Bruyette & Woods from $145.00 to $147.00 in a research note issued on Tuesday, Benzinga reports. The brokerage presently has a "market perform" rating on the bank's stock. Keefe, Bruyette & Woods's target price points to a potential upside of 3.52% from the company's previous close.

Other research analysts have also recently issued reports about the company. Weiss Ratings upgraded City from a "buy (a-)" rating to a "buy (a)" rating in a research note on Friday, October 16th. Hovde Group boosted their price objective on City from $135.00 to $143.00 and gave the stock a "market perform" rating in a research report on Monday, July 27th. One equities research analyst has rated the stock with a Strong Buy rating and three have issued a Hold rating to the company. According to MarketBeat, City currently has an average rating of "Moderate Buy" and an average price target of $140.00.

City Price Performance

CHCO stock traded down $0.81 during trading on Tuesday, reaching $142.00. 49,147 shares of the company were exchanged, compared to its average volume of 115,850. The company has a market capitalization of $1.99 billion, a price-to-earnings ratio of 15.54 and a beta of 0.49. The company has a debt-to-equity ratio of 0.19, a current ratio of 0.83 and a quick ratio of 0.83. The company has a 50-day moving average of $142.46 and a two-hundred day moving average of $131.10. City has a twelve month low of $113.21 and a twelve month high of $148.99.

City (NASDAQ:CHCO - Get Free Report) last issued its earnings results on Monday, October 26th. The bank reported $2.43 earnings per share for the quarter, beating analysts' consensus estimates of $2.36 by $0.07. The firm had revenue of $84.04 million for the quarter, compared to analyst estimates of $83.07 million. City had a net margin of 32.58% and a return on equity of 16.34%. As a group, equities analysts predict that City will post 9.32 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other City news, CEO Charles R. Hageboeck sold 4,485 shares of the company's stock in a transaction dated Thursday, July 30th. The stock was sold at an average price of $144.96, for a total value of $650,145.60. Following the sale, the chief executive officer owned 43,998 shares in the company, valued at approximately $6,377,950.08. The trade was a 9.25% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Sharon H. Rowe sold 400 shares of the stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $143.96, for a total value of $57,584.00. Following the completion of the sale, the director directly owned 10,576 shares of the company's stock, valued at approximately $1,522,520.96. The trade was a 3.64% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders purchased 480 shares of company stock valued at $68,222 over the last 90 days. 1.75% of the stock is currently owned by company insiders.

Institutional Trading of City

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. First Trust Advisors LP increased its position in shares of City by 35.2% during the first quarter. First Trust Advisors LP now owns 61,693 shares of the bank's stock worth $7,374,000 after buying an additional 16,060 shares during the period. Bank of America Corp DE bought a new position in City during the second quarter worth $4,181,000. Quantbot Technologies LP acquired a new position in City in the second quarter valued at $1,189,000. Renaissance Technologies LLC lifted its holdings in City by 55.0% in the first quarter. Renaissance Technologies LLC now owns 61,686 shares of the bank's stock valued at $7,373,000 after buying an additional 21,898 shares during the period. Finally, Man Group plc acquired a new position in City in the second quarter valued at $3,558,000. Institutional investors and hedge funds own 72.43% of the company's stock.

Key Stories Impacting City

Here are the key news stories impacting City this week:

• Positive Sentiment: Quarterly earnings and revenue exceeded expectations. City Holding reported record diluted EPS of $2.43, above consensus estimates ranging from $2.36 to $2.38, while revenue reached approximately $84.0 million to $84.3 million versus estimates near $83.1 million. EPS was up from $2.41 a year earlier. City Holding Q3 earnings report
• Positive Sentiment: Core banking performance improved. Net income available to common shareholders was $34.6 million, GAAP net interest income increased to $62.6 million from $60.8 million in the prior quarter, and non-interest income rose year over year to $21.4 million. Loans grew by $48.4 million during the quarter to $4.55 billion, while deposits increased to $5.36 billion. City Holding record quarterly EPS report
• Positive Sentiment: Dividend increased 15%. The company approved a quarterly cash dividend of $1.00 per share, reinforcing the investment case for income-focused shareholders and signaling management’s confidence in cash generation. City Holding dividend increase report
• Neutral Sentiment: Credit quality remained solid. Nonperforming assets totaled $10.9 million, or 0.24% of loans and other real estate owned. City also reported third-quarter net charge-offs, which investors will monitor for evidence of broader credit deterioration. City Holding net charge-offs report
• Negative Sentiment: Insider selling could create an overhang. Several executives, including the CEO and CFO, sold shares during the past six months. While insider transactions do not necessarily reflect operating expectations, the sales may temper investor enthusiasm after the earnings rally.
• Neutral Sentiment: Reported short interest was effectively zero, indicating little evidence of meaningful bearish positioning or short-covering demand affecting the stock.

About City

City Holding Company NASDAQ: CHCO is a bank holding company headquartered in Charleston, West Virginia. Through its principal subsidiary, City National Bank, the company provides banking and financial services to individuals, businesses and institutions.

City National Bank offers deposit accounts, consumer and commercial loans, residential mortgages, credit cards, cash-management services, investment products and trust services. Its activities also include wealth management and related financial services designed for retail, business and institutional customers.

The company serves communities primarily in West Virginia, Virginia, eastern Kentucky and southeastern Ohio through a network of branches and other delivery channels.

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