Charles Schwab Investment Management Inc. Has $127.81 Million Stake in Cathay General Bancorp (NASDAQ:CATY)

Key Points

• Charles Schwab Investment Management Inc. increased its holdings in Cathay General Bancorp by 3.8%, owning approximately 4.24% of the bank's stock valued at $127.8 million.
• Analysts have set varying price targets for Cathay General Bancorp, with the consensus rating being a "Hold" and an average price target of $49.71.
• Cathay General Bancorp recently announced a $150 million stock repurchase program, indicating the company's belief that its stock is undervalued.

Charles Schwab Investment Management Inc. boosted its holdings in shares of Cathay General Bancorp (NASDAQ:CATY - Free Report) by 3.8% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 2,970,173 shares of the bank's stock after buying an additional 108,672 shares during the period. Charles Schwab Investment Management Inc. owned approximately 4.24% of Cathay General Bancorp worth $127,807,000 as of its most recent filing with the Securities and Exchange Commission.

Several other large investors have also recently bought and sold shares of CATY. Principal Financial Group Inc. increased its position in Cathay General Bancorp by 2.6% in the 1st quarter. Principal Financial Group Inc. now owns 354,457 shares of the bank's stock worth $15,252,000 after purchasing an additional 8,860 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. boosted its stake in shares of Cathay General Bancorp by 11.1% during the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 58,021 shares of the bank's stock worth $2,473,000 after acquiring an additional 5,785 shares in the last quarter. Wells Fargo & Company MN boosted its stake in shares of Cathay General Bancorp by 27.0% during the 4th quarter. Wells Fargo & Company MN now owns 44,179 shares of the bank's stock worth $2,103,000 after acquiring an additional 9,403 shares in the last quarter. Teacher Retirement System of Texas bought a new stake in shares of Cathay General Bancorp during the 1st quarter worth about $426,000. Finally, Hsbc Holdings PLC boosted its stake in shares of Cathay General Bancorp by 109.0% during the 4th quarter. Hsbc Holdings PLC now owns 36,749 shares of the bank's stock worth $1,757,000 after acquiring an additional 19,165 shares in the last quarter. 75.01% of the stock is owned by institutional investors and hedge funds.

Cathay General Bancorp Stock Performance

NASDAQ:CATY traded down $1.02 during mid-day trading on Friday, hitting $47.30. 395,771 shares of the company's stock traded hands, compared to its average volume of 443,425. The firm has a 50 day moving average of $46.20 and a two-hundred day moving average of $44.36. Cathay General Bancorp has a 12 month low of $36.06 and a 12 month high of $55.29. The firm has a market capitalization of $3.27 billion, a price-to-earnings ratio of 11.43 and a beta of 0.97. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.19.

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

Cathay General Bancorp declared that its Board of Directors has initiated a share buyback program on Wednesday, June 4th that authorizes the company to repurchase $150.00 million in shares. This repurchase authorization authorizes the bank to purchase up to 5% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's management believes its stock is undervalued.

Cathay General Bancorp Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, September 8th. Shareholders of record on Thursday, August 28th will be issued a $0.34 dividend. This represents a $1.36 annualized dividend and a yield of 2.9%. Cathay General Bancorp's dividend payout ratio (DPR) is 32.85%.

Analyst Ratings Changes

CATY has been the subject of several recent analyst reports. DA Davidson upped 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, July 23rd. Keefe, Bruyette & Woods upped their price target on Cathay General Bancorp from $51.00 to $52.00 and gave the stock a "market perform" rating in a research note on Wednesday, July 23rd. Jefferies Financial Group set a $53.00 target price on Cathay General Bancorp and gave the company a "buy" rating in a research note on Wednesday, May 21st. Finally, Stephens downgraded Cathay General Bancorp from an "overweight" rating to an "equal weight" rating and set a $50.00 target price for the company. in a research note on Monday, August 4th. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating and two have given a buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $49.71.

Cathay General Bancorp 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.