Cathay General Bancorp (NASDAQ:CATY) Hits New 52-Week High Following Strong Earnings

Key Points

• Cathay stock hit a new 52-week high after reporting quarterly EPS of $1.29 vs. $1.19 expected and revenue of $213.2M (up 14.4% year‑over‑year), with shares trading as high as $55.21.
• Dividend increased — the company raised its quarterly payout to $0.38 (annualized $1.52), implying a ~2.8% yield and a 33.48% payout ratio.
• Despite the rally, analysts’ consensus is a Hold with a $52.50 price target below the current price, and insiders (including the CEO and an EVP) recently sold shares while institutional ownership remains around 75%.

Shares of Cathay General Bancorp (NASDAQ:CATY - Get Free Report) hit a new 52-week high during mid-day trading on Thursday following a better than expected earnings announcement. The company traded as high as $55.21 and last traded at $54.7350, with a volume of 61967 shares trading hands. The stock had previously closed at $53.78.

The bank reported $1.29 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.19 by $0.10. The firm had revenue of $213.20 million during the quarter, compared to the consensus estimate of $211.27 million. Cathay General Bancorp had a net margin of 22.76% and a return on equity of 10.89%. The firm's quarterly revenue was up 14.4% on a year-over-year basis. During the same period last year, the firm posted $0.98 EPS.

Cathay General Bancorp Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, March 9th. Shareholders of record on Thursday, February 26th were given a $0.38 dividend. This represents a $1.52 annualized dividend and a yield of 2.8%. The ex-dividend date was Thursday, February 26th. This is a positive change from Cathay General Bancorp's previous quarterly dividend of $0.34. Cathay General Bancorp's dividend payout ratio is presently 33.48%.

Analyst Upgrades and Downgrades

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

Insider Transactions at Cathay General Bancorp

In other news, EVP Thomas M. Lo sold 1,000 shares of the firm's stock in a transaction dated Thursday, January 29th. The shares were sold at an average price of $50.23, for a total value of $50,230.00. Following the transaction, the executive vice president owned 2,000 shares of the company's stock, valued at approximately $100,460. This trade represents a 33.33% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Chang Liu sold 4,836 shares of the 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 in the company, valued at $6,435,686.65. This represents a 3.65% decrease in their ownership of the stock. 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 Trading of Cathay General Bancorp

Institutional investors and hedge funds have recently modified their holdings of the stock. Pictet Asset Management Holding SA boosted its position in shares of Cathay General Bancorp by 10.9% during the first quarter. Pictet Asset Management Holding SA now owns 10,485 shares of the bank's stock worth $523,000 after purchasing an additional 1,028 shares in the last quarter. Louisiana State Employees Retirement System bought a new stake in Cathay General Bancorp in the 1st quarter valued at approximately $1,486,000. Blue Trust Inc. bought a new position in Cathay General Bancorp in the first quarter valued at $91,000. Evolve Private Wealth LLC increased its position in shares of Cathay General Bancorp by 3.4% in the first quarter. Evolve Private Wealth LLC now owns 18,837 shares of the bank's stock valued at $939,000 after acquiring an additional 619 shares during the last quarter. Finally, Hsbc Holdings PLC acquired a new stake in shares of Cathay General Bancorp in the 4th quarter valued at approximately $7,426,000. 75.01% of the stock is owned by institutional investors.

Cathay General Bancorp Trading Up 2.3%

The business's 50-day moving average price is $50.88 and its 200 day moving average price is $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 debt-to-equity ratio of 0.05, a quick ratio of 1.03 and a current ratio of 1.03.

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.

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