Hsbc Holdings PLC Invests $7.43 Million in Cathay General Bancorp $CATY

Hsbc Holdings PLC purchased a new position in Cathay General Bancorp (NASDAQ:CATY) during the fourth quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor purchased 153,091 shares of the bank’s stock, valued at approximately $7,426,000. Hsbc Holdings PLC owned 0.23% of Cathay General Bancorp at the end of the most recent reporting period.

Several other hedge funds have also recently bought and sold shares of the company. Danske Bank A S purchased a new stake in Cathay General Bancorp during the third quarter worth $48,000. Hantz Financial Services Inc. increased its position in shares of Cathay General Bancorp by 55.8% in the fourth quarter. Hantz Financial Services Inc. now owns 1,525 shares of the bank’s stock valued at $74,000 after buying an additional 546 shares in the last quarter. Torren Management LLC purchased a new position in shares of Cathay General Bancorp in the fourth quarter valued at $76,000. Exchange Traded Concepts LLC acquired a new position in shares of Cathay General Bancorp during the 4th quarter worth $80,000. Finally, NewEdge Advisors LLC raised its stake in shares of Cathay General Bancorp by 319.7% during the 2nd quarter. NewEdge Advisors LLC now owns 1,704 shares of the bank’s stock worth $78,000 after buying an additional 1,298 shares during the last quarter. 75.01% of the stock is owned by hedge funds and other institutional investors.

Cathay General Bancorp Stock Down 1.9%

Shares of NASDAQ:CATY opened at $60.30 on Thursday. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.04. The company has a market capitalization of $4.04 billion, a P/E ratio of 12.43 and a beta of 0.86. Cathay General Bancorp has a 52-week low of $43.65 and a 52-week high of $63.72. The stock’s fifty day simple moving average is $58.68 and its 200-day simple moving average is $53.70.

Cathay General Bancorp (NASDAQ:CATY) last posted its quarterly earnings data on Wednesday, April 22nd. The bank reported $1.29 EPS for the quarter, topping analysts’ consensus estimates of $1.19 by $0.10. The firm had revenue of $213.20 million during the quarter, compared to analysts’ expectations of $211.26 million. Cathay General Bancorp had a return on equity of 11.37% and a net margin of 23.79%.The firm’s quarterly revenue was up 14.4% compared to the same quarter last year. During the same quarter last year, the business posted $0.98 EPS. As a group, equities research analysts forecast that Cathay General Bancorp will post 5.41 earnings per share for the current fiscal year.

Cathay General Bancorp declared that its board has authorized a stock buyback program on Thursday, April 23rd that allows the company to buyback $150,000.00 billion in outstanding shares. This buyback authorization allows the bank to purchase up to 4,164,630.6% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s management believes its stock is undervalued.

Cathay General Bancorp Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 9th. Investors of record on Thursday, May 28th were paid a dividend of $0.38 per share. The ex-dividend date of this dividend was Thursday, May 28th. This represents a $1.52 annualized dividend and a dividend yield of 2.5%. Cathay General Bancorp’s dividend payout ratio is presently 31.34%.

Insider Activity at Cathay General Bancorp

In other Cathay General Bancorp news, Vice Chairman Peter Wu sold 20,000 shares of the business’s stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $57.33, for a total value of $1,146,600.00. Following the completion of the transaction, the insider directly owned 275,252 shares in the company, valued at approximately $15,780,197.16. The trade was a 6.77% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, SVP May K. Chan sold 558 shares of the stock in a transaction on Tuesday, April 28th. The stock was sold at an average price of $56.00, for a total value of $31,248.00. Following the transaction, the senior vice president directly owned 2,693 shares in the company, valued at approximately $150,808. This represents a 17.16% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 4.53% of the company’s stock.

Analysts Set New Price Targets

Several equities research analysts recently commented on the stock. Zacks Research upgraded shares of Cathay General Bancorp from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, June 23rd. Weiss Ratings restated a “buy (b)” rating on shares of Cathay General Bancorp in a research report on Monday. Keefe, Bruyette & Woods upped their price target on shares of Cathay General Bancorp from $55.00 to $58.00 and gave the company a “market perform” rating in a report on Thursday, April 23rd. Finally, Piper Sandler increased their price target on shares of Cathay General Bancorp from $45.00 to $47.00 and gave the company an “underweight” rating in a research report on Monday, April 27th. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $51.75.

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.