Assenagon Asset Management S.A. Boosts Stock Position in Cathay General Bancorp $CATY

Key Points

• Assenagon Asset Management S.A. increased its stake in Cathay General Bancorp by 164.2% during Q2, owning 31,228 shares valued at approximately $1.42 million.
• Cathay General Bancorp announced a share buyback plan worth $150 million, allowing for the repurchase of up to 5% of its stock, indicating management believes the shares are undervalued.
• The company reported $1.10 earnings per share, meeting analysts' expectations, with revenue of $196.61 million, up 10.1% year-over-year.

Assenagon Asset Management S.A. boosted its holdings in Cathay General Bancorp (NASDAQ:CATY - Free Report) by 164.2% during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 31,228 shares of the bank's stock after buying an additional 19,410 shares during the quarter. Assenagon Asset Management S.A.'s holdings in Cathay General Bancorp were worth $1,422,000 at the end of the most recent quarter.

Several other hedge funds also recently made changes to their positions in the company. SummerHaven Investment Management LLC grew its holdings in shares of Cathay General Bancorp by 1.5% during the first quarter. SummerHaven Investment Management LLC now owns 20,747 shares of the bank's stock worth $893,000 after purchasing an additional 303 shares during the last quarter. Choreo LLC boosted its stake in shares of Cathay General Bancorp by 2.9% during the first quarter. Choreo LLC now owns 14,599 shares of the bank's stock worth $628,000 after buying an additional 416 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank boosted its stake in shares of Cathay General Bancorp by 2.1% during the first quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 21,023 shares of the bank's stock worth $905,000 after buying an additional 442 shares during the period. Sei Investments Co. boosted its stake in shares of Cathay General Bancorp by 3.4% during the first quarter. Sei Investments Co. now owns 15,176 shares of the bank's stock worth $719,000 after buying an additional 502 shares during the period. Finally, Wealth Enhancement Advisory Services LLC boosted its stake in shares of Cathay General Bancorp by 5.6% during the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 10,293 shares of the bank's stock worth $490,000 after buying an additional 544 shares during the period. Hedge funds and other institutional investors own 75.01% of the company's stock.

Cathay General Bancorp Price Performance

CATY stock opened at $48.59 on Friday. The firm has a 50 day moving average of $48.11 and a 200-day moving average of $44.97. Cathay General Bancorp has a 12-month low of $36.06 and a 12-month high of $55.29. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.19. The company has a market cap of $3.36 billion, a price-to-earnings ratio of 11.74 and a beta of 1.00.

Cathay General Bancorp (NASDAQ:CATY - Get Free Report) last posted its quarterly earnings results on Tuesday, July 22nd. The bank reported $1.10 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $1.10. Cathay General Bancorp had a net margin of 21.44% and a return on equity of 10.39%. The company had revenue of $196.61 million during the quarter, compared to the consensus estimate of $197.04 million. During the same period last year, the firm earned $0.97 EPS. The company's revenue for the quarter was up 10.1% on a year-over-year basis. As a group, equities analysts expect that Cathay General Bancorp will post 4.47 EPS for the current fiscal year.

Cathay General Bancorp announced that its board has initiated a share buyback plan on Wednesday, June 4th that authorizes the company to buyback $150.00 million in shares. This buyback authorization authorizes the bank to repurchase up to 5% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's management believes its shares are undervalued.

Cathay General Bancorp Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, September 8th. Stockholders of record on Thursday, August 28th were given a dividend of $0.34 per share. This represents a $1.36 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date was Thursday, August 28th. Cathay General Bancorp's dividend payout ratio (DPR) is presently 32.85%.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the stock. Wall Street Zen downgraded shares of Cathay General Bancorp from a "hold" rating to a "sell" rating in a research note on Friday. DA Davidson increased their target price on shares of Cathay General Bancorp from $45.00 to $51.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 23rd. Stephens downgraded shares of Cathay General Bancorp from an "overweight" rating to an "equal weight" rating and set a $50.00 price objective for the company. in a research report on Monday, August 4th. Finally, Keefe, Bruyette & Woods raised their price objective 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, July 23rd. Two equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $50.17.

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.

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