Cathay General Bancorp Receives “Hold” Rating from Analysts

Cathay General Bancorp (NASDAQ: CATY) has been given an average rating of “Hold” by analysts from five research firms currently covering the stock, according to Marketbeat Ratings. This assessment includes three analysts who recommend holding the stock and two who suggest a buy rating. The average target price set by these analysts for the next year is $52.50.

Over the past few months, Cathay General Bancorp has been the subject of multiple research reports. Notably, Weiss Ratings reaffirmed a “buy (B-)” rating for the company in a report released on December 29, 2023. Similarly, DA Davidson raised its price target from $51.00 to $52.00 and maintained a “neutral” rating in a report on October 23, 2023. Furthermore, Keefe, Bruyette & Woods increased their target price from $53.00 to $55.00, also assigning a “market perform” rating. Additionally, Wall Street Zen upgraded Cathay General Bancorp from a “sell” rating to a “hold” rating in a note dated November 16, 2023.

Institutional Investment Trends

Recent activity from hedge funds and institutional investors indicates a growing interest in Cathay General Bancorp. ProShare Advisors LLC increased its holdings by 1.5% during the fourth quarter, bringing its total to 12,925 shares valued at approximately $625,000. Meanwhile, GAMMA Investing LLC raised its stake by 9.0% in the third quarter, now owning 2,641 shares worth $127,000. Other notable increases include Atria Investments Inc, which grew its position by 4.9% to 4,965 shares valued at $226,000, and Access Investment Management LLC, which raised its stake by 1.2% in the same period. Overall, institutional investors hold 75.01% of Cathay General Bancorp’s stock.

The stock opened at $54.10 on January 19, 2024, reflecting a 1.2% increase. The company has a 50-day moving average of $50.40 and a 200-day moving average of $48.62. With a market capitalization of $3.68 billion, Cathay General Bancorp has a price-to-earnings ratio of 11.92 and a beta of 0.87.

Quarterly Earnings and Dividend Announcement

Cathay General Bancorp recently reported its quarterly earnings results on January 22, 2024. The bank posted $1.33 earnings per share (EPS), surpassing the consensus estimate of $1.20 by $0.13. The revenue for the quarter was $222.83 million, exceeding analyst expectations of $211.76 million. The company also reported a return on equity of 10.89% and a net margin of 22.76%. In the same quarter the previous year, the EPS was $1.12. Analysts project that Cathay General Bancorp will achieve an EPS of 4.47 for the current year.

In addition, the company declared a quarterly dividend of $0.34 per share, which was paid on December 11, 2023. Shareholders on record as of December 1, 2023 received this dividend, representing an annualized payout of $1.36 and a yield of 2.5%. The company maintains a dividend payout ratio of 29.96%.

Founded in 1962, Cathay General Bancorp is a bank holding company based in Los Angeles, California. Its primary subsidiary, Cathay Bank, offers a full range of financial services to commercial, institutional, and retail clients. The bank focuses on relationship banking and tailored solutions, having grown significantly since its inception as a single branch operation.