Bank of America Corp DE Makes New Investment in Cathay General Bancorp $CATY

Key Points

• Bank of America initiated a position in Cathay General Bancorp, purchasing 410,545 shares worth approximately $25.45 million, or about 0.62% of the company. Institutional investors collectively own 75.01% of CATY.
• Cathay General Bancorp exceeded quarterly earnings expectations, reporting $1.37 in EPS and $221.2 million in revenue, with revenue up 13.1% year over year. The bank also paid a quarterly dividend of $0.38 per share, representing a 2.5% annualized yield.
• Analysts have an overall “Hold” rating and an average price target of $62.25, while insiders sold 31,600 shares worth nearly $2.0 million over the past three months.

Bank of America Corp DE bought a new position in shares of Cathay General Bancorp (NASDAQ:CATY - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund bought 410,545 shares of the bank's stock, valued at approximately $25,450,000. Bank of America Corp DE owned about 0.62% of Cathay General Bancorp at the end of the most recent reporting period.

A number of other large investors have also made changes to their positions in the stock. Man Group plc acquired a new stake in shares of Cathay General Bancorp in the second quarter valued at approximately $210,000. Jupiter Topco LLC acquired a new stake in shares of Cathay General Bancorp in the 2nd quarter worth $1,757,000. Legal & General Group Plc acquired a new stake in shares of Cathay General Bancorp in the 2nd quarter worth $9,686,000. The Manufacturers Life Insurance Company purchased a new position in shares of Cathay General Bancorp during the 2nd quarter worth $2,018,000. Finally, Algert Global LLC boosted its position in shares of Cathay General Bancorp by 339.2% during the 2nd quarter. Algert Global LLC now owns 75,706 shares of the bank's stock valued at $4,693,000 after acquiring an additional 58,470 shares during the last quarter. 75.01% of the stock is currently owned by hedge funds and other institutional investors.

Cathay General Bancorp Stock Performance

Shares of Cathay General Bancorp stock opened at $60.47 on Thursday. The firm has a market cap of $4.03 billion, a PE ratio of 11.81 and a beta of 0.85. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.04. Cathay General Bancorp has a 52 week low of $44.57 and a 52 week high of $65.25. The business's fifty day simple moving average is $62.65 and its 200-day simple moving average is $58.12.

Cathay General Bancorp (NASDAQ:CATY - Get Free Report) last posted its earnings results on Wednesday, July 22nd. The bank reported $1.37 EPS for the quarter, beating analysts' consensus estimates of $1.35 by $0.02. Cathay General Bancorp had a net margin of 24.66% and a return on equity of 11.71%. The company had revenue of $221.20 million for the quarter, compared to analysts' expectations of $218.28 million. During the same quarter in the prior year, the company posted $1.10 earnings per share. Cathay General Bancorp's revenue for the quarter was up 13.1% compared to the same quarter last year. Equities analysts forecast that Cathay General Bancorp will post 5.48 earnings per share for the current year.

Cathay General Bancorp Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 8th. Investors of record on Friday, August 28th were issued a $0.38 dividend. This represents a $1.52 annualized dividend and a yield of 2.5%. The ex-dividend date was Friday, August 28th. Cathay General Bancorp's dividend payout ratio (DPR) is 29.69%.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on the stock. Keefe, Bruyette & Woods upped their price objective on shares of Cathay General Bancorp from $64.00 to $67.00 and gave the company a "market perform" rating in a report on Thursday, July 23rd. Zacks Research downgraded shares of Cathay General Bancorp from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, August 12th. DA Davidson boosted their target price on shares of Cathay General Bancorp from $56.00 to $66.00 and gave the company a "neutral" rating in a report on Thursday, July 23rd. Piper Sandler increased their price target on shares of Cathay General Bancorp from $49.50 to $53.00 and gave the company an "underweight" rating in a research note on Monday, July 27th. Finally, Stephens raised their price target on shares of Cathay General Bancorp from $56.00 to $63.00 and gave the stock an "equal weight" rating in a report on Thursday, July 23rd. One investment analyst has rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Cathay General Bancorp currently has an average rating of "Hold" and an average target price of $62.25.

Insider Buying and Selling

In related news, Director Richard Sun sold 1,000 shares of the business's stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $62.31, for a total value of $62,310.00. Following the sale, the director owned 2,200 shares in the company, valued at approximately $137,082. The trade was a 31.25% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Thomas M. Lo sold 1,600 shares of the firm's stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $62.47, for a total value of $99,952.00. Following the transaction, the executive vice president owned 2,362 shares of the company's stock, valued at $147,554.14. This trade represents a 40.38% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 31,600 shares of company stock worth $1,996,362. 4.53% of the stock is owned by corporate insiders.

Cathay General Bancorp Company Profile

Cathay General Bancorp is a bank holding company headquartered in Los Angeles, California. Its principal subsidiary, Cathay Bank, is a full-service commercial bank established in 1962 to serve the financial needs of Chinese American communities. Cathay General Bancorp was formed as the bank's holding company in 1990.

Cathay Bank provides a range of banking and financial services for businesses, individuals and institutions. Its offerings include commercial and residential real estate loans, commercial and industrial financing, Small Business Administration loans, consumer lending, deposit accounts, cash-management services, online and mobile banking, and wealth-management solutions.

The company primarily serves customers in major metropolitan areas across California and in selected markets in New York, Texas, Washington, Nevada, Maryland, New Jersey and Massachusetts.

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