City Holding Company (NASDAQ:CHCO) recently saw insider selling activity that caught the attention of shareholders. Executive Vice President, David Bumgarner, sold $207k worth of stock at a price of $98.54 per share, representing 15% of his holdings. While insider selling can sometimes be concerning, it is worth noting that the sale took place at around the current market price, which provides some reassurance.
Over the past year, City Holding insiders have purchased 450.00 shares worth $39k, while divesting 17.83k shares for $1.7m. This suggests a net selling trend among insiders. However, when considering insider ownership as a whole, City Holding insiders still own approximately $36m worth of shares, equivalent to 2.5% of the company’s total shares. While not exceptionally high, this level of insider ownership indicates a reasonable degree of alignment with common shareholders.
Looking at the company’s financials, City Holding has demonstrated profitability and is growing its profits. However, it is important to note that insider ownership levels are not particularly high. This analysis should be taken into consideration for investors looking to purchase shares in the company.
While insider activity can provide valuable insights, it is also crucial to assess the risks a company may be facing. As such, it is recommended to conduct thorough research and consider all aspects before making investment decisions. Potential investors can find additional information and potential warning signs about City Holding by accessing Simply Wall St’s comprehensive analysis.
Frequently Asked Questions (FAQ)
1. What is insider selling?
Insider selling refers to the sale of shares in a company by individuals who have access to important information about the company’s performance or prospects. This includes executives, directors, and other insiders.
2. Should I be concerned about insider selling?
Insider selling can be concerning as it may suggest a lack of confidence in the company’s future prospects. However, it is essential to consider other factors such as the price at which the selling occurred and the overall financial health of the company.
3. What is insider ownership?
Insider ownership refers to the percentage of a company’s shares held by individuals who have access to non-public information about the company. Higher insider ownership is generally viewed as a positive indication of alignment between management and shareholders.
Sources:
– Simply Wall St: https://simplywall.st
– Nasdaq: https://www.nasdaq.com/