City (NASDAQ:CHCO) Stock Breaks Above 50 Day Moving Average – Here’s Why

City Holding Company (NASDAQ:CHCO)’s stock price passed above its 50-day moving average during trading on Monday. The stock has a 50-day moving average of $142.46 and traded as high as $146.30. City shares last traded at $142.81, with a volume of 154,870 shares changing hands.

More City News

Here are the key news stories impacting City this week:

• Positive Sentiment: Q3 earnings and revenue exceeded expectations: City Holding reported diluted earnings of $2.43 per share, above consensus estimates ranging from $2.36 to $2.38, while revenue reached approximately $84.0 million versus estimates near $83.1 million. Earnings were also slightly above the $2.41 reported a year earlier. City Holding Tops Q3 Earnings and Revenue Estimates
• Positive Sentiment: Record profitability and operating growth: Net income available to common shareholders was $34.6 million, with return on average assets of 2.03% and return on average tangible equity of 20.9%. Net interest income increased to $62.6 million, loans grew to $4.55 billion, and deposits rose to $5.36 billion. City Holding Reports Record Quarterly Diluted EPS
• Positive Sentiment: Dividend raised: The board approved a $1.00 quarterly cash dividend, representing a 15% increase according to coverage of the results. The dividend is payable October 30 to shareholders of record as of October 15, adding to the stock’s income appeal. City Holding Beats Q3 Estimates and Raises Dividend
• Neutral Sentiment: Credit metrics remain an investor focus: City Holding reported third-quarter net charge-offs and nonperforming assets of $10.9 million, or 0.24% of loans and other real estate owned. The low nonperforming-asset ratio is reassuring, though charge-off trends remain important for a regional bank.
• Neutral Sentiment: Limited short interest: Reported short interest was zero shares as of October 26, implying no measurable short-selling pressure, although the figure is unlikely to be a major fundamental catalyst.
• Negative Sentiment: Insider selling provides a modest offset: Several executives, including the CEO and CFO, sold shares during the past six months, although other insiders also made smaller purchases. These transactions do not change the strong quarterly earnings picture but may temper sentiment slightly.

Analyst Ratings Changes

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

City Stock Up 0.6%

The company’s fifty day simple moving average is $142.46 and its 200-day simple moving average is $131.10. The company has a debt-to-equity ratio of 0.19, a current ratio of 0.83 and a quick ratio of 0.83. The firm has a market capitalization of $2.01 billion, a PE ratio of 15.62 and a beta of 0.49.

City (NASDAQ:CHCO) last announced its earnings results on Monday, October 26th. The bank reported $2.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.36 by $0.07. City had a return on equity of 16.34% and a net margin of 32.58%. The company had revenue of $84.04 million for the quarter, compared to analyst estimates of $83.07 million. On average, analysts forecast that City Holding Company will post 9.32 EPS for the current year.

City Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Thursday, October 15th will be paid a dividend of $1.00 per share. The ex-dividend date is Thursday, October 15th. This is a positive change from City’s previous quarterly dividend of $0.87. This represents a $4.00 dividend on an annualized basis and a dividend yield of 2.8%. City’s payout ratio is presently 43.76%.

Insider Transactions at City

In other news, Director Sharon H. Rowe sold 400 shares of the company’s stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $143.96, for a total transaction of $57,584.00. Following the transaction, the director owned 10,576 shares in the company, valued at $1,522,520.96. This represents a 3.64% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Charles Hageboeck sold 4,485 shares of the company’s stock in a transaction dated Thursday, July 30th. The shares were 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 in the company, valued at approximately $6,377,950.08. This trade represents a 9.25% decrease in their position. The SEC filing for this sale provides additional information. Insiders have bought 480 shares of company stock worth $68,222 in the last 90 days. Insiders own 1.75% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of CHCO. Sterling Capital Management LLC grew its holdings in shares of City by 223.6% during the third quarter. Sterling Capital Management LLC now owns 398 shares of the bank’s stock valued at $55,000 after buying an additional 275 shares during the last quarter. Nisa Investment Advisors LLC increased its position in shares of City by 18.8% in the 3rd quarter. Nisa Investment Advisors LLC now owns 454 shares of the bank’s stock valued at $63,000 after acquiring an additional 72 shares during the period. Dupree Financial Group LLC increased its position in shares of City by 59.3% in the 3rd quarter. Dupree Financial Group LLC now owns 2,551 shares of the bank’s stock valued at $355,000 after acquiring an additional 950 shares during the period. GAMMA Investing LLC increased its position in shares of City by 10.4% in the 3rd quarter. GAMMA Investing LLC now owns 1,321 shares of the bank’s stock valued at $184,000 after acquiring an additional 124 shares during the period. Finally, QRG Capital Management Inc. raised its stake in City by 8.8% in the 2nd quarter. QRG Capital Management Inc. now owns 5,058 shares of the bank’s stock worth $671,000 after acquiring an additional 409 shares during the last quarter. Institutional investors and hedge funds own 72.43% of the company’s stock.

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.