City (NASDAQ:CHCO) Sets New 52-Week High Following Better-Than-Expected Earnings

Key Points

• City Holding hit a new 52-week high after reporting better-than-expected quarterly earnings, with EPS of $2.35 beating estimates of $2.22 and revenue also slightly ahead of forecasts.
• The company announced a quarterly dividend of $0.87 per share, payable July 31, and has a dividend yield of about 2.5% with a payout ratio of 38.33%.
• City also has a 1 million-share buyback authorization, while analysts currently view the stock as a Hold overall despite a recent target price increase from Hovde Group.

City Holding Company (NASDAQ:CHCO - Get Free Report)'s stock price hit a new 52-week high on Wednesday following a stronger than expected earnings report. The stock traded as high as $139.74 and last traded at $138.58, with a volume of 144599 shares changing hands. The stock had previously closed at $134.99.

The bank reported $2.35 earnings per share for the quarter, topping analysts' consensus estimates of $2.22 by $0.13. City had a net margin of 32.72% and a return on equity of 16.58%. The firm had revenue of $81.52 million for the quarter, compared to analyst estimates of $80.64 million.

City Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Wednesday, July 15th will be paid a dividend of $0.87 per share. The ex-dividend date is Wednesday, July 15th. This represents a $3.48 dividend on an annualized basis and a dividend yield of 2.5%. City's dividend payout ratio (DPR) is presently 38.33%.

City declared that its board has authorized a share buyback plan on Wednesday, March 25th that authorizes the company to buyback 1,000,000 shares. This buyback authorization authorizes the bank to buy shares of its stock through open market purchases. Stock buyback plans are generally a sign that the company's board believes its stock is undervalued.

Analyst Ratings Changes

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

Insiders Place Their Bets

In other City news, EVP Jeffrey Dale Legge sold 1,309 shares of the firm's stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $125.00, for a total value of $163,625.00. Following the sale, the executive vice president directly owned 7,656 shares of the company's stock, valued at approximately $957,000. This trade represents a 14.60% 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 hyperlink. Also, CEO Charles R. Hageboeck sold 1,858 shares of the business's stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $124.40, for a total value of $231,135.20. Following the completion of the sale, the chief executive officer owned 48,483 shares of the company's stock, valued at $6,031,285.20. This trade represents a 3.69% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 12,975 shares of company stock valued at $1,622,853 over the last quarter. Insiders own 1.75% of the company's stock.

Hedge Funds Weigh In On City

Large investors have recently added to or reduced their stakes in the stock. Apollon Wealth Management LLC raised its holdings in shares of City by 4.2% during the 4th quarter. Apollon Wealth Management LLC now owns 1,996 shares of the bank's stock worth $238,000 after acquiring an additional 81 shares during the period. ProShare Advisors LLC grew its holdings in shares of City by 3.0% in the fourth quarter. ProShare Advisors LLC now owns 2,740 shares of the bank's stock valued at $327,000 after purchasing an additional 81 shares during the period. Smartleaf Asset Management LLC increased its position in 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 last quarter. R Squared Ltd increased its position in City by 6.6% during the fourth quarter. R Squared Ltd now owns 2,135 shares of the bank's stock worth $254,000 after purchasing an additional 132 shares during the last quarter. Finally, First Horizon Corp raised its stake in City by 146.0% during the fourth quarter. First Horizon Corp now owns 246 shares of the bank's stock worth $29,000 after purchasing an additional 146 shares during the period. 72.43% of the stock is currently owned by institutional investors and hedge funds.

City Stock Up 2.7%

The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.19. The company has a market capitalization of $1.96 billion, a price-to-earnings ratio of 15.20 and a beta of 0.49. The firm's fifty day simple moving average is $128.96 and its two-hundred day simple moving average is $124.91.

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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