City (NASDAQ:CHCO) Releases Earnings Results, Beats Expectations By $0.06 EPS

Key Points

• City reported $2.20 EPS, beating the consensus of $2.14 by $0.06, and showed strong profitability with a ROE of 16.61% and a net margin of 32.56%.
• The board declared a quarterly dividend of $0.87 per share (annualized $3.48, 2.8% yield) and authorized a 1,000,000-share buyback.
• Shares rose to $126.21 on the news; the stock trades at a P/E of 14.12 and has an average analyst target of $134.50 with mostly Hold ratings.

City (NASDAQ:CHCO - Get Free Report) announced its quarterly earnings data on Thursday. The bank reported $2.20 earnings per share for the quarter, topping the consensus estimate of $2.14 by $0.06, Zacks reports. City had a return on equity of 16.61% and a net margin of 32.56%.

City Stock Performance

NASDAQ:CHCO traded up $1.83 during trading hours on Thursday, reaching $126.21. The stock had a trading volume of 44,559 shares, compared to its average volume of 110,290. City has a 12-month low of $113.21 and a 12-month high of $133.59. The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.83 and a current ratio of 0.83. The stock has a 50 day simple moving average of $122.12 and a 200 day simple moving average of $122.18. The stock has a market cap of $1.81 billion, a P/E ratio of 14.12 and a beta of 0.49.

City Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, April 30th. Stockholders of record on Wednesday, April 15th will be given a dividend of $0.87 per share. This represents a $3.48 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date of this dividend is Wednesday, April 15th. City's dividend payout ratio is currently 38.93%.

City declared that its Board of Directors has authorized a stock repurchase plan on Wednesday, March 25th that permits the company to buyback 1,000,000 shares. This buyback authorization permits the bank to purchase shares of its stock through open market purchases. Shares buyback plans are usually an indication that the company's management believes its shares are undervalued.

Insiders Place Their Bets

In related news, CEO Charles R. Hageboeck sold 1,275 shares of the business's stock in a transaction dated Friday, February 20th. The stock was sold at an average price of $125.33, for a total value of $159,795.75. Following the sale, the chief executive officer directly owned 49,084 shares in the company, valued at approximately $6,151,697.72. The trade was a 2.53% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Over the last ninety days, insiders bought 908 shares of company stock valued at $108,939. Company insiders own 1.75% of the company's stock.

Institutional Trading of City

A number of institutional investors have recently modified their holdings of CHCO. Smartleaf Asset Management LLC raised its holdings in City by 28.4% during the 2nd quarter. Smartleaf Asset Management LLC now owns 497 shares of the bank's stock valued at $61,000 after acquiring an additional 110 shares during the period. Inspire Investing LLC lifted its holdings in City by 5.0% during the 4th quarter. Inspire Investing LLC now owns 3,843 shares of the bank's stock worth $458,000 after purchasing an additional 182 shares in the last quarter. Franklin Resources Inc. boosted its stake in City by 1.9% in 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 during the period. Geneos Wealth Management Inc. increased its holdings in shares of City by 113.1% in the second quarter. Geneos Wealth Management Inc. now owns 373 shares of the bank's stock worth $46,000 after purchasing an additional 198 shares during the period. Finally, Bank of America Corp DE lifted its position in City by 0.3% during the second quarter. Bank of America Corp DE now owns 77,767 shares of the bank's stock valued at $9,520,000 after purchasing an additional 198 shares during the last quarter. 72.43% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Separately, Piper Sandler raised their target price on City from $125.00 to $130.00 and gave the stock a "neutral" rating in a research report on Friday, January 23rd. One 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, the stock has an average rating of "Hold" and an average price target of $134.50.

City Company Profile

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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