Anyone interested in City Holding Company (NASDAQ:CHCO) should probably be aware that the Executive VP, David Bumgarner, recently divested US$207k worth of shares in the company, at an average price of US$98.54 each. That sale was 15% of their holding, so it does make us raise an eyebrow.
See our latest analysis for City Holding
City Holding Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the President, Charles Hageboeck, for US$697k worth of shares, at about US$98.67 per share. So we know that an insider sold shares at around the present share price of US$96.75. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Happily, we note that in the last year insiders paid US$39k for 450.00 shares. But insiders sold 17.66k shares worth US$1.7m. All up, insiders sold more shares in City Holding than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like City Holding better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that City Holding insiders own 2.5% of the company, worth about US$36m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The City Holding Insider Transactions Indicate?
Insiders sold City Holding shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that City Holding is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that City Holding has 2 warning signs (1 is a bit unpleasant!) that deserve your attention before going any further with your analysis.
But note: City Holding may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
