Cathay General Bancorp (NASDAQ:CATY) Trading Up 7% Following Better-Than-Expected Earnings

Cathay General Bancorp (NASDAQ:CATY) rose 7% during trading on Tuesday after the company announced better than expected quarterly earnings. The company traded as high as $41.81 and last traded at $41.31. Approximately 72,961 shares changed hands during mid-day trading, a decline of 79% from the average daily volume of 351,931 shares. The stock had previously closed at $38.60.

The bank reported $0.98 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.95 by $0.03. Cathay General Bancorp had a net margin of 20.57% and a return on equity of 10.70%. The company had revenue of $187.84 million during the quarter, compared to analyst estimates of $186.17 million. During the same period in the previous year, the business earned $1.05 earnings per share.

Cathay General Bancorp Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, March 10th. Shareholders of record on Thursday, February 27th were given a dividend of $0.34 per share. The ex-dividend date was Thursday, February 27th. This represents a $1.36 annualized dividend and a yield of 3.29%. Cathay General Bancorp’s payout ratio is 34.34%.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the company. Keefe, Bruyette & Woods lowered their target price on Cathay General Bancorp from $56.00 to $55.00 and set a “market perform” rating for the company in a research note on Thursday, January 23rd. Piper Sandler cut their target price on shares of Cathay General Bancorp from $45.00 to $43.00 and set an “underweight” rating on the stock in a report on Monday, January 27th. Finally, Stephens reiterated an “overweight” rating and set a $51.00 price target on shares of Cathay General Bancorp in a report on Tuesday. One research analyst has rated the stock with a sell rating, three have given a hold rating and two have issued a buy rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $49.60.

Hedge Funds Weigh In On Cathay General Bancorp

Hedge funds and other institutional investors have recently made changes to their positions in the business. Nomura Asset Management Co. Ltd. increased its position in Cathay General Bancorp by 63.5% during the 4th quarter. Nomura Asset Management Co. Ltd. now owns 850 shares of the bank’s stock valued at $40,000 after purchasing an additional 330 shares during the period. Physician Wealth Advisors Inc. purchased a new position in shares of Cathay General Bancorp during the fourth quarter valued at about $55,000. Venturi Wealth Management LLC bought a new position in Cathay General Bancorp in the fourth quarter worth about $82,000. Smartleaf Asset Management LLC lifted its holdings in Cathay General Bancorp by 189.8% in the fourth quarter. Smartleaf Asset Management LLC now owns 1,794 shares of the bank’s stock worth $86,000 after buying an additional 1,175 shares during the period. Finally, GAMMA Investing LLC boosted its position in Cathay General Bancorp by 42.9% during the 4th quarter. GAMMA Investing LLC now owns 2,188 shares of the bank’s stock valued at $104,000 after acquiring an additional 657 shares in the last quarter. Institutional investors own 75.01% of the company’s stock.

Cathay General Bancorp Price Performance

The stock has a market cap of $2.89 billion, a PE ratio of 10.44 and a beta of 0.99. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.07. The business has a fifty day simple moving average of $42.65 and a two-hundred day simple moving average of $46.27.

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.