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

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Cathay General Bancorp (NASDAQ:CATY) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released 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 downgraded shares of Cathay General Bancorp from a “sell” rating to a “strong sell” rating in a report on Friday, March 22nd. Three research analysts have rated the stock with a sell rating, two have issued a hold rating and one has given a buy rating to the company. The company currently has a consensus rating of “Hold” and an average target price of $46.63.

CATY stock traded down $0.74 during trading on Monday, hitting $35.43. 213,941 shares of the stock traded hands, compared to its average volume of 503,266. The company has a debt-to-equity ratio of 0.35, a quick ratio of 1.06 and a current ratio of 1.06. The company has a market capitalization of $2.85 billion, a price-to-earnings ratio of 10.61, a price-to-earnings-growth ratio of 1.27 and a beta of 1.25. Cathay General Bancorp has a 1 year low of $31.94 and a 1 year high of $44.05.

Cathay General Bancorp (NASDAQ:CATY) last announced its quarterly earnings results on Wednesday, January 23rd. The bank reported $0.80 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.80. The firm had revenue of $155.88 million for the quarter, compared to the consensus estimate 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 firm posted $0.61 EPS. As a group, research analysts predict that Cathay General Bancorp will post 3.48 earnings per share for the current fiscal year.

In related news, EVP Kim R. Bingham sold 4,200 shares of the firm’s stock in a transaction that occurred on Wednesday, March 6th. The shares were sold at an average price of $37.92, for a total value of $159,264.00. Following the transaction, the executive vice president now owns 28,263 shares of the company’s stock, valued at $1,071,732.96. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Vice Chairman Anthony M. Tang sold 10,000 shares of the firm’s stock in a transaction that occurred on Wednesday, February 20th. The stock was sold at an average price of $39.76, for a total transaction of $397,600.00. Following the completion of the transaction, the insider now directly owns 258,006 shares in the company, valued at approximately $10,258,318.56. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 15,100 shares of company stock worth $590,713. Insiders own 4.90% of the company’s stock.

Several institutional investors and hedge funds have recently bought and sold shares of CATY. Oregon Public Employees Retirement Fund boosted its holdings in shares of Cathay General Bancorp by 3,307.7% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 1,029,639 shares of the bank’s stock worth $31,000 after buying an additional 999,424 shares during the last quarter. Norges Bank purchased a new position in shares of Cathay General Bancorp in the fourth quarter worth approximately $25,840,000. BlackRock Inc. boosted its holdings in shares of 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 buying an additional 417,939 shares during the last quarter. JPMorgan Chase & Co. boosted its holdings in shares of Cathay General Bancorp by 31.2% in the third quarter. JPMorgan Chase & Co. now owns 841,347 shares of the bank’s stock worth $34,865,000 after buying an additional 199,979 shares during the last quarter. Finally, Mackenzie Financial Corp purchased a new position in shares of Cathay General Bancorp in the fourth quarter worth approximately $3,697,000. 72.58% of the stock is currently owned by institutional investors.

Cathay General Bancorp Company Profile

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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