Cathay General Bancorp (NASDAQ:CATY) Hits New 52-Week High - Time to Buy?

Key Points

• Cathay General Bancorp stock hit a new 52-week high of $55.09 (last $54.93), rising about 2.5% on the day with roughly 124,858 shares traded; market cap is about $3.63 billion and its 50/200-day SMAs are $50.88/$49.54.
• The bank beat quarterly estimates with EPS of $1.33 versus $1.20 expected and revenue of $222.8M versus $211.8M, analysts forecast full-year EPS of 4.47 and the stock trades at a P/E of ~11.95.
• Cathay raised its quarterly dividend to $0.38 (annualized $1.52) yielding 2.8% with a payout ratio of 33.48%, while insiders have trimmed positions (CEO sold 4,836 shares); insiders own 4.85% of the company.

Cathay General Bancorp (NASDAQ:CATY - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Friday . The company traded as high as $55.09 and last traded at $54.9320, with a volume of 124858 shares changing hands. The stock had previously closed at $52.94.

Analyst Upgrades and Downgrades

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

Cathay General Bancorp Stock Up 2.5%

The business's 50 day simple moving average is $50.88 and its 200-day simple moving average is $49.54. The company has a market cap of $3.63 billion, a price-to-earnings ratio of 11.95 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 (NASDAQ:CATY - Get Free Report) last issued its earnings results on Thursday, January 22nd. The bank reported $1.33 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.20 by $0.13. The company had revenue of $222.83 million during the quarter, compared to analyst estimates of $211.76 million. Cathay General Bancorp had a net margin of 22.76% and a return on equity of 10.89%. During the same quarter last year, the business posted $1.12 EPS. Sell-side analysts expect that Cathay General Bancorp will post 4.47 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. Shareholders of record on Thursday, February 26th were paid a dividend of $0.38 per share. This is an increase from Cathay General Bancorp's previous quarterly dividend of $0.34. The ex-dividend date of this dividend was Thursday, February 26th. This represents a $1.52 dividend on an annualized basis and a dividend yield of 2.8%. Cathay General Bancorp's dividend payout ratio (DPR) is 33.48%.

Insiders Place Their Bets

In other news, EVP Thomas M. Lo sold 1,000 shares of the firm's stock in a transaction 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 transaction, the executive vice president owned 2,000 shares in the company, valued at approximately $100,460. This trade represents a 33.33% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Chang Liu sold 4,836 shares of the firm's stock in a transaction 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 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 position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 4.85% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Bessemer Group Inc. raised its holdings in shares of 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 in the last quarter. Salomon & Ludwin LLC bought a new position in shares of Cathay General Bancorp during the 3rd quarter valued at $43,000. Hantz Financial Services Inc. raised its holdings in shares of Cathay General Bancorp by 36.0% during 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 in the last quarter. Danske Bank A S bought a new position in shares of Cathay General Bancorp during the 3rd quarter valued at $48,000. Finally, Torren Management LLC bought a new position in shares of Cathay General Bancorp during the 4th quarter valued at $76,000. Institutional investors own 75.01% of the company's stock.

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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