Zacks Investment Research Downgrades Cathay General Bancorp (CATY) to Sell

Cathay General Bancorp (NASDAQ:CATY) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Monday, Zacks.com reports.

According to Zacks, “Cathay General Bancorp is the one-bank holding company for Cathay Bank, a California state-chartered bank. Cathay Bank offers a wide range of financial services. Cathay Bank currently operates branches in California, New York State, Massachusetts, Houston, Texas, Washington State, and representative offices in Hong Kong and Shanghai, China. In addition, Cathay Bank’s subsidiaries, Cathay Investment Company and GBC Investment & Consulting Company, Inc., each maintain an office in Taipei. “

Separately, BidaskClub cut shares of Cathay General Bancorp from a “hold” rating to a “sell” rating in a research report on Thursday, March 7th. Three analysts have rated the stock with a sell rating, two have given a hold rating and one has assigned a buy rating to the stock. Cathay General Bancorp presently has an average rating of “Hold” and a consensus price target of $46.63.

Shares of Cathay General Bancorp stock traded down $0.74 on Monday, hitting $35.43. 213,941 shares of the company traded hands, compared to its average volume of 503,266. The stock has a market cap of $2.85 billion, a P/E ratio of 10.61, a PEG ratio of 1.27 and a beta of 1.25. The company has a debt-to-equity ratio of 0.35, a current ratio of 1.06 and a quick ratio of 1.06. Cathay General Bancorp has a 52 week low of $31.94 and a 52 week high of $44.05.

Cathay General Bancorp (NASDAQ:CATY) last released its quarterly earnings data on Wednesday, January 23rd. The bank reported $0.80 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.80. The firm had revenue of $155.88 million for the quarter, compared to analysts’ expectations of $155.75 million. Cathay General Bancorp had a net margin of 37.84% and a return on equity of 13.18%. During the same quarter last year, the business posted $0.61 earnings per share. As a group, equities analysts expect that Cathay General Bancorp will post 3.48 EPS for the current year.

In related news, Vice Chairman Anthony M. Tang sold 10,000 shares of the business’s stock in a transaction on Wednesday, February 20th. The shares were sold at an average price of $39.76, for a total value of $397,600.00. Following the sale, the insider now owns 258,006 shares in the company, valued at $10,258,318.56. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Kim R. Bingham sold 4,200 shares of the business’s stock in a transaction on Wednesday, March 6th. The stock was sold at an average price of $37.92, for a total transaction of $159,264.00. Following the completion of the sale, the executive vice president now owns 28,263 shares in the company, valued at approximately $1,071,732.96. The disclosure for this sale can be found here. Insiders sold 15,100 shares of company stock worth $590,713 in the last 90 days. 4.90% of the stock is currently owned by company insiders.

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. BlackRock Inc. increased its position in Cathay General Bancorp by 4.1% in the fourth quarter. BlackRock Inc. now owns 10,551,696 shares of the bank’s stock worth $353,798,000 after purchasing an additional 417,939 shares during the last quarter. Vanguard Group Inc boosted its stake in Cathay General Bancorp by 1.4% during the third quarter. Vanguard Group Inc now owns 7,420,546 shares of the bank’s stock worth $307,507,000 after buying an additional 102,133 shares during the period. Vanguard Group Inc. boosted its stake in Cathay General Bancorp by 1.4% during the third quarter. Vanguard Group Inc. now owns 7,420,546 shares of the bank’s stock worth $307,507,000 after buying an additional 102,133 shares during the period. Bank of New York Mellon Corp boosted its stake in Cathay General Bancorp by 1.1% during the fourth quarter. Bank of New York Mellon Corp now owns 1,333,726 shares of the bank’s stock worth $44,720,000 after buying an additional 15,020 shares during the period. Finally, Principal Financial Group Inc. boosted its stake in Cathay General Bancorp by 6.1% during the fourth quarter. Principal Financial Group Inc. now owns 1,186,178 shares of the bank’s stock worth $39,773,000 after buying an additional 68,310 shares during the period. Institutional investors own 72.58% of the company’s stock.

About Cathay General Bancorp

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.

See Also: Cost of Equity

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