Cathay General Bancorp (NASDAQ:CATY) Posts Earnings Results, Meets Estimates

Cathay General Bancorp (NASDAQ:CATY - Get Free Report) posted its quarterly earnings results on Tuesday. The bank reported $1.10 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $1.10, Zacks reports. The company had revenue of $196.61 million for the quarter, compared to analyst estimates of $197.04 million. Cathay General Bancorp had a return on equity of 10.39% and a net margin of 21.44%. Cathay General Bancorp's revenue for the quarter was up 10.1% compared to the same quarter last year. During the same quarter last year, the company earned $0.97 EPS.

Cathay General Bancorp Price Performance

Cathay General Bancorp stock traded down $0.34 during mid-day trading on Friday, hitting $46.62. The company's stock had a trading volume of 395,963 shares, compared to its average volume of 445,371. Cathay General Bancorp has a twelve month low of $36.06 and a twelve month high of $55.29. The stock's fifty day moving average price is $45.37 and its two-hundred day moving average price is $44.48. The stock has a market capitalization of $3.27 billion, a P/E ratio of 11.26 and a beta of 0.93. The company has a quick ratio of 1.04, a current ratio of 1.05 and a debt-to-equity ratio of 0.19.

Cathay General Bancorp Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, June 9th. Shareholders of record on Thursday, May 29th were paid a dividend of $0.34 per share. This represents a $1.36 dividend on an annualized basis and a yield of 2.92%. The ex-dividend date was Thursday, May 29th. Cathay General Bancorp's payout ratio is currently 32.85%.

Insider Activity at Cathay General Bancorp

In related news, EVP Thomas M. Lo sold 729 shares of the firm's stock in a transaction that occurred on Monday, May 12th. The shares were sold at an average price of $45.00, for a total value of $32,805.00. Following the completion of the transaction, the executive vice president owned 4,000 shares of the company's stock, valued at approximately $180,000. This trade represents a 15.42% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 4.85% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Cathay General Bancorp

Hedge funds have recently modified their holdings of the stock. Strs Ohio acquired a new position in Cathay General Bancorp during the first quarter valued at approximately $112,000. Jane Street Group LLC lifted its position in Cathay General Bancorp by 43.8% during the 1st quarter. Jane Street Group LLC now owns 85,426 shares of the bank's stock worth $3,676,000 after acquiring an additional 26,027 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in Cathay General Bancorp by 5.1% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 183,090 shares of the bank's stock valued at $7,878,000 after acquiring an additional 8,914 shares during the period. Caxton Associates LLP acquired a new stake in shares of Cathay General Bancorp in the first quarter valued at about $316,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of Cathay General Bancorp by 1.9% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 40,395 shares of the bank's stock worth $1,738,000 after purchasing an additional 760 shares during the period. 75.01% of the stock is owned by institutional investors and hedge funds.

Cathay General Bancorp announced that its Board of Directors has authorized a share buyback plan on Wednesday, June 4th that allows the company to repurchase $150.00 million in shares. This repurchase authorization allows the bank to repurchase up to 5% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's management believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several analysts recently commented on CATY shares. Keefe, Bruyette & Woods upped their price target on shares of Cathay General Bancorp from $51.00 to $52.00 and gave the company a "market perform" rating in a research report on Wednesday. Jefferies Financial Group set a $53.00 price objective on Cathay General Bancorp and gave the company a "buy" rating in a report on Wednesday, May 21st. Stephens reissued an "overweight" rating and set a $51.00 price objective on shares of Cathay General Bancorp in a report on Tuesday, April 22nd. Finally, DA Davidson lifted their price target on Cathay General Bancorp from $45.00 to $51.00 and gave the stock a "neutral" rating in a research note on Wednesday. One research analyst has rated the stock with a sell rating, three have issued a hold rating and three have assigned a buy rating to the stock. According to MarketBeat, Cathay General Bancorp presently has an average rating of "Hold" and an average price target of $49.86.

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.