Wellington Management Group LLP Makes New $25.86 Million Investment in Cathay General Bancorp $CATY

Key Points

• Wellington Management Group LLP purchased a new stake in Cathay General Bancorp, acquiring 600,885 shares valued at approximately $25.86 million, representing around 0.86% of the company.
• Several institutional investors have also adjusted their stakes in Cathay General Bancorp, collectively owning over 75% of the company's stock.
• The bank recently announced a quarterly dividend of $0.34 per share, with a 2.7% dividend yield, and initiated a stock buyback program allowing for the repurchase of up to $150 million in shares.

Wellington Management Group LLP bought a new position in shares of Cathay General Bancorp (NASDAQ:CATY - Free Report) during the first quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor bought 600,885 shares of the bank's stock, valued at approximately $25,856,000. Wellington Management Group LLP owned approximately 0.86% of Cathay General Bancorp at the end of the most recent quarter.

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

Cathay General Bancorp Stock Performance

Shares of NASDAQ CATY traded up $0.10 during mid-day trading on Friday, reaching $49.91. 317,262 shares of the company were exchanged, compared to its average volume of 422,025. The company's 50-day simple moving average is $47.15 and its 200-day simple moving average is $44.48. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.19. The stock has a market capitalization of $3.45 billion, a P/E ratio of 12.06 and a beta of 0.97. Cathay General Bancorp has a twelve month low of $36.06 and a twelve month high of $55.29.

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

Cathay General Bancorp announced that its Board of Directors has authorized a stock repurchase program on Wednesday, June 4th that allows the company to repurchase $150.00 million in shares. This repurchase authorization allows the bank to buy up to 5% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's leadership believes its shares are undervalued.

Cathay General Bancorp Announces Dividend

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

Analysts Set New Price Targets

Several equities research analysts have commented on CATY shares. DA Davidson boosted their price target on shares of Cathay General Bancorp from $45.00 to $51.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 23rd. Keefe, Bruyette & Woods lifted 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. 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. Jefferies Financial Group set a $53.00 price objective on shares of Cathay General Bancorp and gave the company a "buy" rating in a research report on Wednesday, May 21st. Finally, Wall Street Zen downgraded shares of Cathay General Bancorp from a "hold" rating to a "sell" rating in a research report on Friday, August 22nd. Two equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Cathay General Bancorp presently has a consensus rating of "Hold" and an average target price of $49.71.

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.