City (NASDAQ:CHCO) Posts Quarterly Earnings Results, Beats Expectations By $0.07 EPS

Key Points

• City reported quarterly EPS of $2.43, beating analyst expectations of $2.36 by $0.07. The bank posted a 32.58% net margin and a 16.34% return on equity.
• City raised its quarterly dividend to $1.00 per share from $0.87, bringing the annualized payout to $4.00 and the yield to approximately 2.8%.
• Analyst sentiment remains cautiously positive, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $139.33; recent analysts raised their individual targets to between $143 and $145.

City (NASDAQ:CHCO - Get Free Report) released its earnings results on Monday. The bank reported $2.43 EPS for the quarter, topping the consensus estimate of $2.36 by $0.07, Zacks reports. City had a net margin of 32.58% and a return on equity of 16.34%.

City Stock Performance

Shares of CHCO opened at $142.01 on Monday. 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 company has a market capitalization of $2.00 billion, a price-to-earnings ratio of 15.54 and a beta of 0.49. The company's 50 day simple moving average is $142.51 and its 200 day simple moving average is $135.00. City has a 1 year low of $113.21 and a 1 year high of $148.99.

City Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Thursday, October 15th will be paid a $1.00 dividend. This represents a $4.00 annualized dividend and a yield of 2.8%. The ex-dividend date of this dividend is Thursday, October 15th. This is a positive change from City's previous quarterly dividend of $0.87. City's dividend payout ratio is presently 43.76%.

Analyst Upgrades and Downgrades

CHCO has been the subject of a number of recent analyst reports. Keefe, Bruyette & Woods raised their target price on City from $135.00 to $145.00 and gave the company a "market perform" rating in a report on Thursday, October 1st. Weiss Ratings upgraded shares of City from a "buy (a-)" rating to a "buy (a)" rating in a research note on Friday, October 16th. Finally, Hovde Group boosted their price objective on shares of City from $135.00 to $143.00 and gave the stock a "market perform" rating in a report on Monday, July 27th. One investment analyst has rated the stock with a Strong Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $139.33.

Insider Activity at City

In other City news, Director Sharon H. Rowe sold 400 shares of the stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $143.96, for a total transaction of $57,584.00. Following the sale, the director directly owned 10,576 shares of the company's stock, valued at approximately $1,522,520.96. This represents a 3.64% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, 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 transaction of $650,145.60. Following the transaction, the chief executive officer owned 43,998 shares of the company's stock, valued at $6,377,950.08. This represents a 9.25% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have acquired 480 shares of company stock valued at $68,222. 1.75% of the stock is owned by insiders.

City Company Profile

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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