Cathay General Bancorp (NASDAQ: CATY) has been given an average recommendation of “Hold” by five research firms currently covering the stock, according to Marketbeat Ratings. This consensus includes three analysts who rated the stock as a hold and two who assigned a buy rating. The average one-year price target among these analysts stands at $52.50.
Research analyst reports have consistently focused on Cathay General Bancorp in recent months. On December 29, Weiss Ratings reaffirmed a “buy (b-)” rating for the company’s shares. Meanwhile, DA Davidson raised their price target from $51.00 to $52.00, assigning a “neutral” rating in a report published on October 23. Additionally, Keefe, Bruyette & Woods increased their target from $53.00 to $55.00, labeling the stock as a “market perform” on October 22. Notably, Wall Street Zen upgraded Cathay General Bancorp from a “sell” to a “hold” rating on November 16.
Institutional Investor Activity
Recent activity among hedge funds and institutional investors indicates a growing interest in Cathay General Bancorp. ProShare Advisors LLC increased its stake by 1.5% in the fourth quarter, acquiring an additional 196 shares to reach a total of 12,925 shares valued at approximately $625,000. GAMMA Investing LLC also expanded its holdings by 9.0% in the third quarter, now owning 2,641 shares worth around $127,000.
Other notable increases included Atria Investments Inc., which raised its position by 4.9% during the second quarter, and Access Investment Management LLC, which grew its stake by 1.2% in the third quarter. Collectively, hedge funds and institutional investors control approximately 75.01% of the company’s stock.
Stock Performance and Financial Overview
Cathay General Bancorp’s stock opened at $54.10 on Friday, reflecting a 1.2% increase. The stock has a 50-day moving average of $50.40 and a 200-day moving average of $48.62. The company boasts a debt-to-equity ratio of 0.05, a quick ratio of 1.04, and a current ratio of 1.03. Its market capitalization is estimated at $3.68 billion, with a price-to-earnings ratio of 11.92 and a beta of 0.87. The stock has seen a fifty-two week low of $36.06 and a high of $54.99.
In its latest quarterly earnings report, released on January 22, 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 predictions of $211.76 million. The bank achieved a return on equity of 10.89% and maintained a net margin of 22.76%. Analysts project an EPS of 4.47 for the current year.
Additionally, Cathay General Bancorp recently declared a quarterly dividend of $0.34 per share, paid on December 11. Shareholders of record as of December 1 received this dividend, representing an annualized yield of 2.5%. The company’s dividend payout ratio is currently 29.96%.
Founded in 1962 by a group of Chinese American entrepreneurs, Cathay General Bancorp is based in Los Angeles, California. The bank offers a comprehensive range of financial services to commercial, institutional, and retail clients, focusing on relationship banking and tailored financial solutions.
