Hsbc Holdings PLC Sells 21,538 Shares of Cathay General Bancorp $CATY

Key Points

• Hsbc Holdings PLC has reduced its stake in Cathay General Bancorp by 58.6%, now holding 15,211 shares worth $651,000 after selling 21,538 shares in Q1.
• Multiple institutional investors, including Captrust Financial Advisors and Cetera Investment Advisers, have increased their stakes in Cathay General Bancorp amidst Hsbc's divestment.
• Cathay General Bancorp has announced a quarterly dividend of $0.34, with a yield of 2.7%, and a stock buyback program authorized for up to $150 million in outstanding shares.

Hsbc Holdings PLC cut its stake in Cathay General Bancorp (NASDAQ:CATY - Free Report) by 58.6% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 15,211 shares of the bank's stock after selling 21,538 shares during the period. Hsbc Holdings PLC's holdings in Cathay General Bancorp were worth $651,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Meeder Asset Management Inc. bought a new stake in shares of Cathay General Bancorp during the 1st quarter worth $46,000. Caitong International Asset Management Co. Ltd raised its position in shares of Cathay General Bancorp by 174.8% in the 1st quarter. Caitong International Asset Management Co. Ltd now owns 1,201 shares of the bank's stock worth $52,000 after purchasing an additional 764 shares during the last quarter. Mackenzie Financial Corp bought a new stake in shares of Cathay General Bancorp during the 4th quarter valued at about $212,000. Vestcor Inc purchased a new position in Cathay General Bancorp during the first quarter valued at approximately $214,000. Finally, Y Intercept Hong Kong Ltd bought a new position in Cathay General Bancorp in the 1st quarter worth approximately $220,000. 75.01% of the stock is currently owned by institutional investors.

Cathay General Bancorp Stock Performance

Shares of NASDAQ CATY traded down $0.30 during midday trading on Friday, hitting $50.08. 53,774 shares of the company's stock traded hands, compared to its average volume of 417,540. The stock has a market capitalization of $3.46 billion, a price-to-earnings ratio of 12.08 and a beta of 1.00. The firm has a fifty day moving average of $47.68 and a 200 day moving average of $44.59. The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.05 and a current ratio of 1.05. Cathay General Bancorp has a 1 year low of $36.06 and a 1 year high of $55.29.

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

Cathay General Bancorp Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, September 8th. Stockholders of record on Thursday, August 28th will be issued a $0.34 dividend. This represents a $1.36 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date of this dividend is Thursday, August 28th. Cathay General Bancorp's payout ratio is 32.85%.

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

Analyst Upgrades and Downgrades

Several analysts recently weighed in on the company. Stephens downgraded Cathay General Bancorp from an "overweight" rating to an "equal weight" rating and set a $50.00 price objective for the company. in a report on Monday, August 4th. Keefe, Bruyette & Woods boosted their target price 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 report on Wednesday, May 21st. Wall Street Zen raised Cathay General Bancorp from a "sell" rating to a "hold" rating in a research report on Saturday, August 30th. Finally, DA Davidson raised their target price on Cathay General Bancorp from $45.00 to $51.00 and gave the company a "neutral" rating in a research note on Wednesday, July 23rd. Two equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Hold" and an average target price 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.