City Holding Co (NASDAQ:CHCO) director Tracy W. Hylton II has recently increased his stake in the company, purchasing shares valued at over $18,000. The transaction took place on April 16, 2024, and involved the acquisition of 189 shares at a price of $97.73 each.
The purchase was made in accordance with a pre-arranged trading plan, known as a Rule 10b5-1 Plan, which allows company insiders to set up a trading schedule in advance to buy or sell shares at a predetermined time. This plan provides a defense against claims of insider trading, as it demonstrates that the trades were planned when the insider was not in possession of material non-public information.
Following this recent purchase, Hylton's direct holdings in City Holding Co have increased to a total of 59,834.3349 shares. Additionally, Hylton holds indirect positions through custodial accounts for his children. These include 1,586 shares as a custodian for his daughter Traci Jo Hylton under the West Virginia Uniform Gifts to Minors Act (WVUGMA), 3,800 shares held by his daughter, and 4,500 shares as a custodian for Morgan T. Hylton, also under WVUGMA.
The acquisition of shares by a director is often seen as a sign of confidence in the company's future prospects. Investors typically monitor such insider transactions for insights into the sentiments of company executives and directors regarding the stock's potential performance.
City Holding Co, headquartered in Charleston, West Virginia, operates as the bank holding company for City National Bank, providing various banking, trust and investment management, and other financial solutions in the region.
The filing, signed by attorney-in-fact Victoria A. Faw on behalf of Hylton, was made public on April 18, 2024. It should be noted that the reported increase in Hylton's direct holdings includes approximately 95 shares acquired through the company's dividend reinvestment plan, based on the most recent plan statement.
InvestingPro Insights
City Holding Co (NASDAQ:CHCO) has recently seen notable insider activity, which may pique the interest of current and potential investors. To further understand the company's financial health and performance, a look at the real-time data from InvestingPro can provide valuable context.
As of the last twelve months leading up to Q4 2023, City Holding Co has maintained a stable market capitalization of approximately $1.47 billion. The company's price-to-earnings (P/E) ratio stands at 12.55, suggesting a reasonable valuation compared to earnings. Additionally, CHCO has demonstrated a solid revenue growth of 13.91% during the same period, reflecting its ability to expand its financial footprint in the competitive banking sector.
From an investment standpoint, two key InvestingPro Tips stand out for City Holding Co. Firstly, the company has raised its dividend for 12 consecutive years, indicating a commitment to returning value to shareholders. Secondly, six analysts have revised their earnings upwards for the upcoming period, which may signal positive expectations for the company's financial future. These insights, alongside the insider buying activity, could suggest a bullish outlook for CHCO.
For investors seeking a deeper dive into City Holding Co's performance and potential, there are additional InvestingPro Tips available at https://www.investing.com/pro/CHCO. Currently, there are five more tips listed that could help in making a more informed investment decision. Moreover, by using the coupon code PRONEWS24, investors can receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further valuable insights.
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