City (NASDAQ:CHCO) Issues Quarterly Earnings Results, Beats Estimates By $0.07 EPS

City (NASDAQ:CHCO) posted its quarterly earnings results on Monday. The bank reported $2.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.36 by $0.07, Zacks reports. The firm had revenue of $84.04 million during the quarter, compared to analyst estimates of $83.07 million. City had a net margin of 32.58% and a return on equity of 16.34%.

City Stock Performance

NASDAQ:CHCO opened at $142.81 on Tuesday. City has a 1 year low of $113.21 and a 1 year high of $148.99. The firm has a 50 day moving average of $142.46 and a 200-day moving average of $131.10. The company has a current ratio of 0.83, a quick ratio of 0.83 and a debt-to-equity ratio of 0.19. The stock has a market capitalization of $2.01 billion, a P/E ratio of 15.62 and a beta of 0.49.

City Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Thursday, October 15th will be issued a dividend of $1.00 per share. 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. This represents a $4.00 annualized dividend and a dividend yield of 2.8%. City’s dividend payout ratio (DPR) is 43.76%.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on CHCO. Hovde Group upped their price objective on City from $135.00 to $143.00 and gave the company a “market perform” rating in a research note on Monday, July 27th. Keefe, Bruyette & Woods raised their target price on City from $135.00 to $145.00 and gave the stock a “market perform” rating in a research report on Thursday, October 1st. Finally, Weiss Ratings raised City from a “buy (a-)” rating to a “buy (a)” rating in a research note on Friday, October 16th. One research analyst has rated the stock with a Strong Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $139.33.

Key Headlines Impacting City

Here are the key news stories impacting City this week:

• Positive Sentiment: Q3 earnings and revenue exceeded expectations. City Holding reported diluted EPS of $2.43, up from $2.41 a year earlier, compared with analyst estimates ranging from $2.36 to $2.38. Revenue reached approximately $84.0 million, ahead of the roughly $83.1 million consensus. City Holding Tops Q3 Earnings and Revenue Estimates
• Positive Sentiment: Profitability and core banking metrics remained strong. Net income available to common shareholders was $34.6 million, while return on average assets was 2.03% and return on average tangible equity was 20.9%. Net interest income increased to $62.6 million from $60.8 million in the prior quarter, and non-interest income rose year over year. Loans grew $48.4 million sequentially to $4.55 billion, while deposits increased to $5.36 billion. City Holding Reports Record Quarterly EPS
• Positive Sentiment: The quarterly dividend was raised 15% to $1.00 per share. The cash dividend is payable October 30 to shareholders of record as of October 15, supporting the stock’s income appeal and signaling management confidence in cash generation. City Holding Raises Dividend 15%
• Neutral Sentiment: Nonperforming assets were relatively low at $10.9 million, or 0.24% of loans and other real estate owned. The company also reported third-quarter net charge-offs, but the available report does not provide enough detail to assess whether credit quality materially improved or deteriorated. City Holding Reports Net Charge-Offs
• Negative Sentiment: Insider-trading data showed more selling than buying over the past six months, including sales by the chief executive and chief financial officer. While these transactions may be routine, they could modestly temper investor enthusiasm following the earnings rally.

Insider Buying and Selling

In related news, Director Sharon H. Rowe sold 400 shares of the firm’s stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $143.96, for a total transaction of $57,584.00. Following the completion of the sale, the director directly owned 10,576 shares of the company’s stock, valued at $1,522,520.96. This trade represents a 3.64% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Charles Hageboeck sold 4,485 shares of City stock in a transaction on Thursday, July 30th. The shares were sold at an average price of $144.96, for a total value of $650,145.60. Following the completion of the transaction, the chief executive officer owned 43,998 shares of the company’s stock, valued at approximately $6,377,950.08. The trade was a 9.25% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have purchased 480 shares of company stock worth $68,222. 1.75% of the stock is owned by corporate 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.