City (NASDAQ:CHCO) Issues Quarterly Earnings Results

Key Points

• City reported quarterly earnings of $2.35 per share, beating analyst expectations of $2.22, while posting a net margin of 32.72% and return on equity of 16.58%.
• The company declared a quarterly dividend of $0.87 per share, payable July 31, implying an annualized dividend of $3.48 and a yield of 2.6%.
• City also has a newly approved 1 million share buyback program, while analysts currently rate the stock a consensus Hold with an average price target of $134.25.

City (NASDAQ:CHCO - Get Free Report) issued its quarterly earnings data on Wednesday. The bank reported $2.35 earnings per share for the quarter, topping the consensus estimate of $2.22 by $0.13, Zacks reports. City had a net margin of 32.72% and a return on equity of 16.58%.

City Stock Down 0.7%

NASDAQ CHCO opened at $134.99 on Wednesday. The stock has a fifty day moving average of $128.96 and a 200-day moving average of $124.91. City has a 52 week low of $113.21 and a 52 week high of $138.18. The stock has a market capitalization of $1.90 billion, a P/E ratio of 14.87 and a beta of 0.49. The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.84 and a current ratio of 0.84.

City Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Wednesday, July 15th will be given a $0.87 dividend. This represents a $3.48 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date is Wednesday, July 15th. City's dividend payout ratio (DPR) is presently 38.33%.

Insider Buying and Selling at City

In other City news, CFO David L. Bumgarner sold 1,161 shares of the firm's stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $124.50, for a total transaction of $144,544.50. Following the transaction, the chief financial officer owned 10,666 shares in the company, valued at approximately $1,327,917. This trade represents a 9.82% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Charles R. Hageboeck sold 5,855 shares of the business's stock in a transaction that occurred on Tuesday, April 28th. The shares were sold at an average price of $125.30, for a total transaction of $733,631.50. Following the transaction, the chief executive officer owned 50,341 shares of the company's stock, valued at approximately $6,307,727.30. This represents a 10.42% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 12,975 shares of company stock valued at $1,622,853 in the last three months. Insiders own 1.75% of the company's stock.

Hedge Funds Weigh In On City

Hedge funds and other institutional investors have recently made changes to their positions in the company. Smartleaf Asset Management LLC raised its position in shares of City by 28.4% during the second quarter. Smartleaf Asset Management LLC now owns 497 shares of the bank's stock worth $61,000 after purchasing an additional 110 shares during the period. Inspire Investing LLC grew its position in shares of City by 5.0% in the 4th quarter. Inspire Investing LLC now owns 3,843 shares of the bank's stock valued at $458,000 after purchasing an additional 182 shares during the period. Franklin Resources Inc. increased its stake in City by 1.9% during the 3rd quarter. Franklin Resources Inc. now owns 9,905 shares of the bank's stock worth $1,227,000 after purchasing an additional 186 shares in the last quarter. Bank of America Corp DE increased its stake in City by 0.3% during the 2nd quarter. Bank of America Corp DE now owns 77,767 shares of the bank's stock worth $9,520,000 after purchasing an additional 198 shares in the last quarter. Finally, Geneos Wealth Management Inc. raised its holdings in City by 113.1% during the 2nd quarter. Geneos Wealth Management Inc. now owns 373 shares of the bank's stock worth $46,000 after buying an additional 198 shares during the period. 72.43% of the stock is owned by institutional investors.

Analysts Set New Price Targets

A number of equities research analysts recently commented on the company. Weiss Ratings upgraded City from a "buy (b)" rating to a "buy (b+)" rating in a research report on Thursday, July 16th. Hovde Group boosted their price objective on City from $133.00 to $135.00 and gave the stock a "market perform" rating in a research note on Tuesday, April 28th. One investment analyst has rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $134.25.

City announced that its board has approved a stock buyback plan on Wednesday, March 25th that permits the company to repurchase 1,000,000 shares. This repurchase authorization permits the bank to purchase shares of its stock through open market purchases. Shares repurchase plans are often a sign that the company's board believes its shares are undervalued.

About City

City Holding Company NASDAQ: CHCO is a bank holding company headquartered in Morgantown, West Virginia. Through its wholly owned subsidiary, City National Bank, the company offers a full range of banking and financial services to individuals, businesses and nonprofit organizations. Its operations emphasize community-oriented banking, combining local decision-making with access to digital banking platforms.

The company's product portfolio includes deposit accounts such as checking, savings and money market accounts, as well as consumer and commercial lending solutions ranging from personal loans and mortgages to commercial real estate and equipment financing.

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