City (NASDAQ:CHCO) Posts Quarterly Earnings Results, Beats Estimates By $0.26 EPS

Key Points

• City Holding Company (NASDAQ:CHCO) reported quarterly earnings of $2.41 per share, exceeding estimates by $0.26, with revenue of $81.26 million also surpassing expectations.
• The company announced an increase in its quarterly dividend to $0.87 per share, representing an annualized yield of 2.8% and up from the previous $0.79.
• Institutional investors hold a significant stake in City, with 72.43% of the company's stock owned by these entities, reflecting strong market interest.

City (NASDAQ:CHCO - Get Free Report) released its quarterly earnings results on Wednesday. The bank reported $2.41 earnings per share for the quarter, topping the consensus estimate of $2.15 by $0.26, Zacks reports. The firm had revenue of $81.26 million for the quarter, compared to analysts' expectations of $80.17 million. City had a net margin of 31.35% and a return on equity of 16.30%.

City Stock Up 1.7%

CHCO traded up $2.05 on Wednesday, hitting $122.41. The company had a trading volume of 81,694 shares, compared to its average volume of 83,320. City has a 52-week low of $102.22 and a 52-week high of $137.28. The stock has a fifty day simple moving average of $124.65 and a 200-day simple moving average of $121.46. The firm has a market capitalization of $1.77 billion, a P/E ratio of 14.73 and a beta of 0.53. The company has a debt-to-equity ratio of 0.20, a current ratio of 0.81 and a quick ratio of 0.81.

City Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 31st. Shareholders of record on Wednesday, October 15th will be issued a $0.87 dividend. This represents a $3.48 annualized dividend and a yield of 2.8%. This is a boost from City's previous quarterly dividend of $0.79. The ex-dividend date is Wednesday, October 15th. City's dividend payout ratio (DPR) is 41.88%.

Insider Buying and Selling

In other City news, EVP Michael T. Quinlan, Jr. sold 1,000 shares of the firm's stock in a transaction that occurred on Thursday, July 24th. The shares were sold at an average price of $131.12, for a total transaction of $131,120.00. Following the completion of the transaction, the executive vice president owned 1,830 shares of the company's stock, valued at approximately $239,949.60. This trade represents a 35.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Jeffrey Dale Legge sold 2,500 shares of the firm's stock in a transaction that occurred on Thursday, July 24th. The shares were sold at an average price of $131.06, for a total transaction of $327,650.00. Following the transaction, the executive vice president directly owned 7,037 shares of the company's stock, valued at $922,269.22. This represents a 26.21% decrease in their position. The disclosure for this sale can be found here. Insiders have acquired 721 shares of company stock valued at $87,518 in the last ninety days. Insiders own 1.87% of the company's stock.

Institutional Investors Weigh In On City

Institutional investors and hedge funds have recently made changes to their positions in the company. Jump Financial LLC increased its position in shares of City by 36.8% during the second quarter. Jump Financial LLC now owns 4,332 shares of the bank's stock valued at $530,000 after acquiring an additional 1,166 shares in the last quarter. Marshall Wace LLP bought a new stake in shares of City during the second quarter valued at approximately $2,216,000. First Trust Advisors LP increased its position in shares of City by 16.0% during the second quarter. First Trust Advisors LP now owns 51,794 shares of the bank's stock valued at $6,341,000 after acquiring an additional 7,125 shares in the last quarter. EverSource Wealth Advisors LLC increased its position in shares of City by 463.2% during the second quarter. EverSource Wealth Advisors LLC now owns 428 shares of the bank's stock valued at $52,000 after acquiring an additional 352 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership grew its position in City by 54.4% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 31,720 shares of the bank's stock worth $3,883,000 after purchasing an additional 11,179 shares during the period. Institutional investors own 72.43% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms recently commented on CHCO. Hovde Group increased their target price on City from $130.00 to $136.00 and gave the company a "market perform" rating in a research note on Wednesday, July 23rd. Wall Street Zen cut City from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th. Zacks Research cut City from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, September 23rd. Keefe, Bruyette & Woods increased their target price on shares of City from $125.00 to $135.00 and gave the stock a "market perform" rating in a report on Wednesday, July 23rd. Finally, DA Davidson increased their target price on shares of City from $128.00 to $137.00 and gave the stock a "neutral" rating in a report on Thursday, July 24th. One equities research analyst has rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $133.25.

City Company Profile

City Holding Company operates as a holding company for City National Bank of West Virginia that provides various banking, trust, and investment management, and other financial solutions in the United States. The company offers checking, savings, and money market accounts, as well as certificates of deposit and individual retirement accounts.

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