Cathay General Bancorp (NASDAQ:CATY) Hits New 1-Year High on Strong Earnings

Cathay General Bancorp (NASDAQ:CATY) shares hit a new 52-week high on Thursday following a stronger than expected earnings report. The stock traded as high as $55.21 and last traded at $54.7350, with a volume of 61967 shares changing hands. The stock had previously closed at $53.78.

The bank reported $1.29 EPS for the quarter, topping the consensus estimate of $1.19 by $0.10. Cathay General Bancorp had a net margin of 22.76% and a return on equity of 10.89%. The business had revenue of $213.20 million during the quarter, compared to the consensus estimate of $211.27 million. During the same quarter in the previous year, the firm posted $0.98 EPS. Cathay General Bancorp’s revenue was up 14.4% compared to the same quarter last year.

Cathay General Bancorp Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, March 9th. Investors of record on Thursday, February 26th were paid a $0.38 dividend. This represents a $1.52 annualized dividend 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 of this dividend was Thursday, February 26th. Cathay General Bancorp’s payout ratio is 33.48%.

Analysts Set New Price Targets

Separately, Weiss Ratings reissued a “buy (b-)” rating on shares of Cathay General Bancorp in a report on Monday, December 29th. Two investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $52.50.

Insider Activity

In other news, EVP Thomas M. Lo sold 1,000 shares of the company’s stock in a transaction that occurred on Thursday, January 29th. The stock was sold at an average price of $50.23, for a total value of $50,230.00. Following the completion of the transaction, the executive vice president owned 2,000 shares of the company’s stock, valued at $100,460. This represents a 33.33% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CEO Chang Liu sold 4,836 shares of the firm’s stock in a transaction that occurred on Monday, April 6th. The shares were sold at an average price of $50.35, for a total transaction of $243,492.60. Following the completion of the transaction, the chief executive officer owned 127,819 shares of the company’s stock, valued at approximately $6,435,686.65. This trade represents a 3.65% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 4.85% of the stock is currently owned by company insiders.

Institutional Trading of Cathay General Bancorp

Several institutional investors have recently modified their holdings of CATY. Bessemer Group Inc. increased its position in Cathay General Bancorp by 101.8% during the 3rd quarter. Bessemer Group Inc. now owns 781 shares of the bank’s stock valued at $38,000 after purchasing an additional 394 shares during the period. Salomon & Ludwin LLC bought a new position in shares of Cathay General Bancorp in the 3rd quarter worth about $43,000. Hantz Financial Services Inc. lifted its stake in shares of Cathay General Bancorp by 36.0% in the 3rd quarter. Hantz Financial Services Inc. now owns 979 shares of the bank’s stock valued at $47,000 after purchasing an additional 259 shares during the period. Danske Bank A S acquired a new position in shares of Cathay General Bancorp in the 3rd quarter valued at about $48,000. Finally, Torren Management LLC bought a new stake in shares of Cathay General Bancorp during the 4th quarter valued at about $76,000. Institutional investors own 75.01% of the company’s stock.

Cathay General Bancorp Trading Up 2.3%

The firm has a 50-day moving average of $50.88 and a 200 day moving average of $49.72. The company has a market cap of $3.69 billion, a P/E ratio of 12.14 and a beta of 0.82. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.05.

Cathay General Bancorp Company Profile

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.