Insider Buying: Cathay General Bancorp (CATY) Director Purchases 500 Shares of Stock

Cathay General Bancorp (NASDAQ:CATY) Director Kelly L. Chan acquired 500 shares of the stock in a transaction on Tuesday, December 4th. The shares were bought at an average price of $37.45 per share, with a total value of $18,725.00. Following the purchase, the director now directly owns 86,830 shares of the company’s stock, valued at approximately $3,251,783.50. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink.

Shares of CATY stock traded down $0.30 during mid-day trading on Friday, hitting $37.27. The company’s stock had a trading volume of 548,879 shares, compared to its average volume of 401,013. Cathay General Bancorp has a 52-week low of $35.73 and a 52-week high of $45.59. The company has a debt-to-equity ratio of 0.25, a current ratio of 1.04 and a quick ratio of 1.04. The stock has a market capitalization of $3.05 billion, a P/E ratio of 15.15, a P/E/G ratio of 1.40 and a beta of 1.25.

Cathay General Bancorp (NASDAQ:CATY) last posted its quarterly earnings results on Wednesday, October 17th. The bank reported $0.85 earnings per share for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.85. Cathay General Bancorp had a return on equity of 12.64% and a net margin of 33.74%. The firm had revenue of $152.92 million during the quarter, compared to analysts’ expectations of $153.90 million. During the same quarter in the previous year, the business earned $0.61 earnings per share. As a group, analysts anticipate that Cathay General Bancorp will post 3.35 earnings per share for the current year.

Cathay General Bancorp declared that its board has authorized a stock buyback program on Friday, October 26th that allows the company to repurchase $45.00 million in shares. This repurchase authorization allows the bank to buy up to 1.5% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s board of directors believes its shares are undervalued.

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 13th. Stockholders of record on Monday, December 3rd will be paid a $0.31 dividend. The ex-dividend date of this dividend is Friday, November 30th. This represents a $1.24 annualized dividend and a dividend yield of 3.33%. This is a boost from Cathay General Bancorp’s previous quarterly dividend of $0.24. Cathay General Bancorp’s payout ratio is currently 50.41%.

Several hedge funds have recently bought and sold shares of CATY. LSV Asset Management raised its stake in shares of Cathay General Bancorp by 198.0% in the second quarter. LSV Asset Management now owns 1,132,346 shares of the bank’s stock worth $45,848,000 after purchasing an additional 752,346 shares during the last quarter. BlackRock Inc. raised its stake in shares of Cathay General Bancorp by 5.8% in the second quarter. BlackRock Inc. now owns 9,807,758 shares of the bank’s stock worth $397,115,000 after purchasing an additional 538,766 shares during the last quarter. Victory Capital Management Inc. purchased a new position in shares of Cathay General Bancorp in the second quarter worth $8,121,000. JPMorgan Chase & Co. raised its stake in shares of Cathay General Bancorp by 31.2% in the third quarter. JPMorgan Chase & Co. now owns 841,347 shares of the bank’s stock worth $34,865,000 after purchasing an additional 199,979 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its stake in shares of Cathay General Bancorp by 3.4% in the second quarter. Dimensional Fund Advisors LP now owns 3,874,123 shares of the bank’s stock worth $156,865,000 after purchasing an additional 127,407 shares during the last quarter. Hedge funds and other institutional investors own 71.92% of the company’s stock.

A number of research analysts have issued reports on CATY shares. BidaskClub cut Cathay General Bancorp from a “sell” rating to a “strong sell” rating in a research note on Friday, August 31st. ValuEngine cut Cathay General Bancorp from a “hold” rating to a “sell” rating in a research note on Tuesday, October 2nd. Two research analysts have rated the stock with a sell rating, four have assigned a hold rating and three have assigned a buy rating to the company. The stock currently has an average rating of “Hold” and an average price target of $47.64.

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Cathay General Bancorp Company Profile

Cathay General Bancorp operates as the holding company for Cathay Bank that offers various commercial banking products and services to individuals, professionals, and small to medium-sized businesses in the United States. The company offers various deposit products, including passbook accounts, checking accounts, money market deposit accounts, certificates of deposit, individual retirement accounts, and public funds deposits.

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