Independent Director of City Holding Picks Up 287% More Stock

Investors who take an interest in City Holding Company (NASDAQ:CHCO) should definitely note that the Independent Director, James Parsons, recently paid US$122 per share to buy US$269k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 287%, potentially signalling some real optimism.

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The Last 12 Months Of Insider Transactions At City Holding

Over the last year, we can see that the biggest insider sale was by the President, Charles Hageboeck, for US$896k worth of shares, at about US$125 per share. So what is clear is that an insider saw fit to sell at around the current price of US$122. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last twelve months insiders purchased 3.16k shares for US$376k. But they sold 28.06k shares for US$3.5m. In total, City Holding insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for City Holding

I will like City Holding better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does City Holding Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. City Holding insiders own about US$34m worth of shares. That equates to 1.9% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At City Holding Tell Us?

We note that there's been a little more insider selling than buying, recently. But the net divestment is not enough to concern us at all. We're a little cautious about the insider selling at City Holding. But we do like the fact that insiders own a fair chunk of the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing City Holding. Be aware that City Holding is showing 2 warning signs in our investment analysis, and 1 of those shouldn't be ignored...

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.