Cathay General Bancorp (NASDAQ: CATY) has garnered an average recommendation of “Hold” from five research firms currently covering the stock, according to Marketbeat Ratings. Among these analysts, three have assigned a hold rating, while two have issued buy ratings. The analysts have set an average one-year price target of $52.50 for the company.
Recent reports from various analysts indicate a cautious optimism surrounding Cathay General Bancorp. Weiss Ratings reaffirmed a “buy (B-)” rating on December 29, 2023. DA Davidson revised its price objective from $51.00 to $52.00 and maintained a “neutral” rating on October 23, 2023. Similarly, Keefe, Bruyette & Woods raised their target price from $53.00 to $55.00 while labeling the stock as “market perform” on October 22, 2023. Additionally, Wall Street Zen upgraded Cathay General Bancorp from a “sell” rating to a “hold” rating on November 16, 2023.
Institutional Investors Adjust Their Holdings
Hedge funds and institutional investors have been actively adjusting their stakes in Cathay General Bancorp. ProShare Advisors LLC increased its position by 1.5% during the fourth quarter, now holding 12,925 shares valued at $625,000. GAMMA Investing LLC raised its stake by 9.0% in the third quarter, acquiring an additional 218 shares to reach 2,641 shares worth $127,000.
Atria Investments Inc also expanded its holdings by 4.9% in the second quarter, resulting in ownership of 4,965 shares valued at $226,000. Access Investment Management LLC raised its position by 1.2% in the third quarter, now owning 21,145 shares valued at $1,015,000. Hantz Financial Services Inc significantly boosted its stake by 36.0% in the same quarter, acquiring an additional 259 shares to own 979 shares valued at $47,000. Overall, institutional investors hold 75.01% of the company’s stock.
Recent Trading Performance and Earnings
Shares of Cathay General Bancorp opened at $54.10 on the latest trading day. The stock has demonstrated a moving average of $50.40 over the past 50 days and $48.62 over the past 200 days. The firm maintains a low debt-to-equity ratio of 0.05, a quick ratio of 1.04, and a current ratio of 1.03. With a market capitalization of $3.68 billion and a price-to-earnings ratio of 11.92, the stock has fluctuated between a fifty-two week low of $36.06 and a high of $54.99.
In its most recent quarterly earnings report on January 22, 2024, Cathay General Bancorp announced earnings per share (EPS) of $1.33, surpassing the consensus estimate of $1.20 by $0.13. The company reported revenue of $222.83 million, exceeding analyst expectations of $211.76 million. The bank achieved a return on equity of 10.89% and a net margin of 22.76%. Analysts project that Cathay General Bancorp will deliver an EPS of $4.47 for the current fiscal year.
Additionally, the company announced a quarterly dividend of $0.34 per share, which was paid on December 11, 2023. This dividend represents an annualized amount of $1.36, yielding 2.5%. The ex-dividend date was December 1, 2023, and Cathay General Bancorp’s dividend payout ratio stands at 29.96%.
About Cathay General Bancorp
Cathay General Bancorp is a bank holding company based in Los Angeles, California. It operates under the NASDAQ symbol CATY. Its principal subsidiary, Cathay Bank, offers a comprehensive range of financial services tailored to commercial, institutional, and retail clients. Founded in 1962 by a group of Chinese American entrepreneurs, Cathay has evolved from a single branch in downtown Los Angeles to become one of the largest Asian-American banks in the United States, emphasizing strong community relationships and personalized banking solutions.
