Bank of New York Mellon Corp Acquires New Holdings in Cathay General Bancorp $CATY

Key Points

• Bank of New York Mellon acquired 658,156 shares of Cathay General Bancorp in the second quarter, worth approximately $40.8 million and representing about 0.98% of the company. Institutional investors collectively own 75.01% of CATY.
• Cathay General Bancorp reported quarterly earnings of $1.37 per share, exceeding analyst expectations, while revenue rose 13.1% year over year to $221.2 million. The company also declared a quarterly dividend of $0.38, producing an annualized yield of roughly 2.5%.
• Analysts maintain a consensus “Hold” rating, with an average price target of $62.25. CATY recently traded at $61.87, while insiders have sold 30,600 shares worth approximately $1.93 million over the past 90 days.

Bank of New York Mellon Corp purchased a new position in shares of Cathay General Bancorp (NASDAQ:CATY - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor purchased 658,156 shares of the bank's stock, valued at approximately $40,799,000. Bank of New York Mellon Corp owned about 0.98% of Cathay General Bancorp as of its most recent SEC filing.

A number of other large investors have also recently bought and sold shares of CATY. Danske Bank A S bought a new position in shares of Cathay General Bancorp in the 3rd quarter valued at approximately $48,000. Hantz Financial Services Inc. grew its holdings in Cathay General Bancorp by 55.8% during the fourth quarter. Hantz Financial Services Inc. now owns 1,525 shares of the bank's stock valued at $74,000 after purchasing an additional 546 shares during the last quarter. NewEdge Advisors LLC raised its position in shares of Cathay General Bancorp by 319.7% in the second quarter. NewEdge Advisors LLC now owns 1,704 shares of the bank's stock valued at $78,000 after purchasing an additional 1,298 shares during the period. Rockefeller Capital Management L.P. raised its position in shares of Cathay General Bancorp by 158.1% in the fourth quarter. Rockefeller Capital Management L.P. now owns 1,809 shares of the bank's stock valued at $88,000 after purchasing an additional 1,108 shares during the period. Finally, Blue Trust Inc. acquired a new stake in shares of Cathay General Bancorp in the first quarter worth $91,000. 75.01% of the stock is currently owned by institutional investors.

Cathay General Bancorp Stock Down 0.4%

Cathay General Bancorp stock opened at $61.87 on Friday. The company has a 50 day moving average of $62.60 and a 200-day moving average of $56.87. 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 twelve month low of $44.57 and a twelve month high of $65.25. The stock has a market capitalization of $4.13 billion, a PE ratio of 12.08 and a beta of 0.86.

Cathay General Bancorp (NASDAQ:CATY - Get Free Report) last released its quarterly earnings results on Wednesday, July 22nd. The bank reported $1.37 earnings per share for the quarter, topping analysts' consensus estimates of $1.35 by $0.02. The firm had revenue of $221.20 million during the quarter, compared to the consensus estimate of $218.28 million. Cathay General Bancorp had a return on equity of 11.71% and a net margin of 24.66%.The business's revenue was up 13.1% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.10 EPS. On average, equities research analysts anticipate that Cathay General Bancorp will post 5.48 EPS for the current fiscal year.

Cathay General Bancorp Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 8th. Shareholders of record on Friday, August 28th will be paid a $0.38 dividend. The ex-dividend date is Friday, August 28th. This represents a $1.52 annualized dividend and a yield of 2.5%. Cathay General Bancorp's dividend payout ratio is currently 29.69%.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the stock. Weiss Ratings reiterated a "buy (b)" rating on shares of Cathay General Bancorp in a research note on Monday, July 6th. Stephens boosted their target price on shares of Cathay General Bancorp from $56.00 to $63.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 23rd. Zacks Research lowered Cathay General Bancorp from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, August 12th. Piper Sandler lifted their target price on Cathay General Bancorp from $49.50 to $53.00 and gave the stock an "underweight" rating in a research report on Monday, July 27th. Finally, Keefe, Bruyette & Woods increased their price objective on Cathay General Bancorp from $64.00 to $67.00 and gave the stock a "market perform" rating in a research note on Thursday, July 23rd. One research analyst has rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Cathay General Bancorp presently has a consensus 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 that occurred on Tuesday, August 25th. The stock was sold at an average price of $62.08, for a total transaction of $62,080.00. Following the transaction, the director directly owned 3,200 shares of the company's stock, valued at approximately $198,656. The trade was a 23.81% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Thomas M. Lo sold 1,600 shares of the stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $62.47, for a total value of $99,952.00. Following the completion of the sale, the executive vice president owned 2,362 shares in the company, valued at approximately $147,554.14. This trade represents a 40.38% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 30,600 shares of company stock valued at $1,934,052. Insiders own 4.53% 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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