Cathay General Bancorp (CATY) to Repurchase $45.00 million in Outstanding Stock

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Cathay General Bancorp (NASDAQ:CATY) announced that its board has initiated a share buyback plan, which permits the company to buyback $45.00 million in shares on Friday, October 26th. This buyback authorization permits the bank to repurchase up to 1.5% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s leadership believes its stock is undervalued.

A number of equities research analysts have issued reports on the company. BidaskClub upgraded Cathay General Bancorp from a “sell” rating to a “hold” rating in a research note on Tuesday. ValuEngine downgraded Cathay General Bancorp from a “hold” rating to a “sell” rating in a research note on Sunday, October 14th. Finally, Zacks Investment Research upgraded Cathay General Bancorp from a “hold” rating to a “buy” rating and set a $47.00 price target for the company in a research note on Friday, July 20th. One research analyst has rated the stock with a sell rating, five have given a hold rating and three have assigned a buy rating to the stock. The stock presently has a consensus rating of “Hold” and an average target price of $47.64.

CATY stock opened at $37.83 on Wednesday. Cathay General Bancorp has a twelve month low of $35.73 and a twelve month high of $45.59. The company has a debt-to-equity ratio of 0.25, a quick ratio of 1.04 and a current ratio of 1.04. The stock has a market cap of $2.97 billion, a PE ratio of 15.38, a P/E/G ratio of 1.36 and a beta of 1.28.

Cathay General Bancorp (NASDAQ:CATY) last posted its quarterly earnings data on Wednesday, October 17th. The bank reported $0.85 earnings per share for the quarter, meeting the Zacks’ consensus estimate of $0.85. Cathay General Bancorp had a return on equity of 12.64% and a net margin of 33.74%. The firm had revenue of $152.92 million for the quarter, compared to analysts’ expectations of $153.90 million. During the same period in the previous year, the firm earned $0.61 EPS. As a group, equities analysts forecast that Cathay General Bancorp will post 3.35 earnings per share for the current fiscal year.

In other news, Vice Chairman Anthony M. Tang sold 12,289 shares of Cathay General Bancorp stock in a transaction dated Thursday, August 2nd. The stock was sold at an average price of $42.50, for a total transaction of $522,282.50. Following the transaction, the insider now directly owns 290,717 shares of the company’s stock, valued at approximately $12,355,472.50. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Vice Chairman Anthony M. Tang sold 11,510 shares of Cathay General Bancorp stock in a transaction dated Wednesday, August 8th. The shares were sold at an average price of $42.50, for a total value of $489,175.00. Following the transaction, the insider now directly owns 283,272 shares in the company, valued at $12,039,060. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 44,330 shares of company stock worth $1,883,695. Insiders own 4.90% 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.

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