Cathay General Bancorp (NASDAQ:CATY) Issues Earnings Results, Beats Expectations By $0.10 EPS

Key Points

• Beat expectations: Cathay reported Q earnings of $1.29 EPS versus a $1.19 consensus (beating by $0.10) and revenue of $213.2M, up 14.4% year-over-year, with a net margin of 22.76% and ROE of 10.89%.
• The board raised the quarterly dividend to $0.38 (from $0.34), an annualized $1.52 payout with a 2.8% yield and a 33.48% payout ratio.
• Shares opened at $53.78 (market cap ~$3.6B, P/E 11.85) amid insider sales by the CEO and EVP and ~75% institutional ownership; analysts' consensus is a Hold with a $52.50 target.

Cathay General Bancorp (NASDAQ:CATY - Get Free Report) released its quarterly earnings data on Wednesday. The bank reported $1.29 EPS for the quarter, beating the consensus estimate of $1.19 by $0.10, Zacks reports. The business had revenue of $213.20 million for the quarter, compared to the consensus estimate of $211.26 million. Cathay General Bancorp had a net margin of 22.76% and a return on equity of 10.89%. The company's revenue was up 14.4% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.98 earnings per share.

Cathay General Bancorp Stock Up 0.4%

CATY stock opened at $53.78 on Thursday. The stock has a 50-day simple moving average of $50.88 and a two-hundred day simple moving average of $49.72. Cathay General Bancorp has a twelve month low of $40.96 and a twelve month high of $55.09. The firm has a market capitalization of $3.60 billion, a PE ratio of 11.85 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 0.05.

Cathay General Bancorp Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, March 9th. Shareholders of record on Thursday, February 26th were issued a dividend of $0.38 per share. This represents a $1.52 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date of this dividend was Thursday, February 26th. This is a boost from Cathay General Bancorp's previous quarterly dividend of $0.34. Cathay General Bancorp's payout ratio is presently 33.48%.

Insider Transactions at Cathay General Bancorp

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

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Danske Bank A S purchased a new stake in shares of Cathay General Bancorp in the third quarter worth $48,000. NewEdge Advisors LLC grew its position in Cathay General Bancorp by 319.7% during the second quarter. NewEdge Advisors LLC now owns 1,704 shares of the bank's stock worth $78,000 after buying an additional 1,298 shares in the last quarter. Strs Ohio bought a new position in Cathay General Bancorp in the 1st quarter worth about $112,000. HighTower Advisors LLC bought a new position in Cathay General Bancorp in the 4th quarter worth about $206,000. Finally, Cibc World Markets Corp purchased a new stake in shares of Cathay General Bancorp in the 4th quarter valued at about $213,000. 75.01% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings restated a "buy (b-)" rating on shares of Cathay General Bancorp in a research note on Monday, December 29th. Two investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the company has an average rating of "Hold" and a consensus target price of $52.50.

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.