Key Points
- SVP May Chan sold 558 shares on April 28 at an average price of $56 for proceeds of $31,248, leaving her with 2,693 shares (a 17.16% reduction in her holdings, valued at ~ $150,808).
- Quarterly results beat expectations: Cathay reported Q1 EPS of $1.29 versus the $1.19 consensus and revenue of $213.2 million (up 14.4% year-over-year); the company has a market cap of $3.67 billion and a P/E of 11.3.
- Shareholder returns boosted: the board raised the quarterly dividend to $0.38 (annualized $1.52, ~2.8% yield) and announced a share repurchase program, though the repurchase figures reported in the article appear erroneous.
Cathay General Bancorp (NASDAQ:CATY - Get Free Report) SVP May Chan sold 558 shares of the firm's stock in a transaction on Tuesday, April 28th. The stock was sold at an average price of $56.00, for a total value of $31,248.00. Following the transaction, the senior vice president owned 2,693 shares of the company's stock, valued at approximately $150,808. This represents a 17.16% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link.
Cathay General Bancorp Trading Down 1.7%
CATY opened at $54.80 on Thursday. Cathay General Bancorp has a 52 week low of $40.96 and a 52 week high of $56.30. The business has a fifty day simple moving average of $51.06 and a 200-day simple moving average of $49.96. The firm has a market cap of $3.67 billion, a P/E ratio of 11.30 and a beta of 0.82. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.04.
Cathay General Bancorp (NASDAQ:CATY - Get Free Report) last released its quarterly earnings results on Wednesday, April 22nd. The bank reported $1.29 EPS for the quarter, topping the consensus estimate of $1.19 by $0.10. Cathay General Bancorp had a return on equity of 11.37% and a net margin of 23.79%.The business had revenue of $213.20 million during the quarter, compared to analyst estimates of $211.27 million. During the same period last year, the business posted $0.98 earnings per share. The company's quarterly revenue was up 14.4% on a year-over-year basis. On average, equities analysts expect that Cathay General Bancorp will post 5.16 earnings per share for the current year.
Cathay General Bancorp Increases Dividend
The business also recently announced a quarterly dividend, which was paid on Monday, March 9th. Investors of record on Thursday, February 26th were issued a $0.38 dividend. This represents a $1.52 dividend on an annualized basis and a yield of 2.8%. This is a boost from Cathay General Bancorp's previous quarterly dividend of $0.34. The ex-dividend date was Thursday, February 26th. Cathay General Bancorp's dividend payout ratio (DPR) is 31.34%.
Cathay General Bancorp declared that its board has initiated a share buyback plan on Thursday, April 23rd that authorizes the company to repurchase $150,000.00 billion in shares. This repurchase authorization authorizes the bank to repurchase up to 4,164,630.6% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's management believes its stock is undervalued.
Institutional Trading of Cathay General Bancorp
Institutional investors have recently bought and sold shares of the business. Bessemer Group Inc. lifted its holdings in Cathay General Bancorp by 101.8% during the 3rd quarter. Bessemer Group Inc. now owns 781 shares of the bank's stock worth $38,000 after buying an additional 394 shares during the last quarter. Salomon & Ludwin LLC acquired a new stake in shares of Cathay General Bancorp during the third quarter worth about $43,000. Hantz Financial Services Inc. increased its position in shares of Cathay General Bancorp by 36.0% during the third quarter. Hantz Financial Services Inc. now owns 979 shares of the bank's stock worth $47,000 after purchasing an additional 259 shares in the last quarter. Danske Bank A S acquired a new stake in shares of Cathay General Bancorp during the third quarter worth about $48,000. Finally, Torren Management LLC acquired a new stake in shares of Cathay General Bancorp during the fourth quarter worth about $76,000. 75.01% of the stock is owned by hedge funds and other institutional investors.
Wall Street Analysts Forecast Growth
A number of research firms recently issued reports on CATY. Keefe, Bruyette & Woods lifted their target price on Cathay General Bancorp from $55.00 to $58.00 and gave the company a "market perform" rating in a report on Thursday, April 23rd. Piper Sandler lifted their target price on Cathay General Bancorp from $45.00 to $47.00 and gave the company an "underweight" rating in a report on Monday. Two investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Cathay General Bancorp presently has a consensus rating of "Hold" and a consensus target price of $52.00.
Read Our Latest Stock Report on Cathay General Bancorp
Cathay General Bancorp Company Profile
(
Get Free Report)
Cathay General Bancorp is a bank holding company headquartered in Los Angeles, California, trading on NASDAQ under the symbol CATY. Its principal subsidiary, Cathay Bank, provides a full suite of financial services to commercial, institutional and retail clients. As a community-focused institution, the company emphasizes relationship banking and tailored solutions for businesses and individuals.
Founded in 1962 by a group of Chinese American entrepreneurs, Cathay has expanded from a single branch operation in downtown Los Angeles into one of the largest Asian-American banks in the United States.
Further Reading
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