Cathay General Bancorp (NASDAQ:CATY) Sees Large Growth in Short Interest

Cathay General Bancorp (NASDAQ:CATY) was the target of a significant increase in short interest in the month of February. As of February 13th, there was short interest totaling 1,950,831 shares, an increase of 20.0% from the January 29th total of 1,625,154 shares. Approximately 3.0% of the company’s stock are sold short. Based on an average trading volume of 398,922 shares, the short-interest ratio is currently 4.9 days. Based on an average trading volume of 398,922 shares, the short-interest ratio is currently 4.9 days. Approximately 3.0% of the company’s stock are sold short.

Cathay General Bancorp Stock Performance

Shares of NASDAQ CATY opened at $49.54 on Friday. The company has a debt-to-equity ratio of 0.05, a quick ratio of 1.04 and a current ratio of 1.03. The stock has a 50 day moving average price of $51.22 and a 200 day moving average price of $49.38. The stock has a market capitalization of $3.32 billion, a PE ratio of 10.91 and a beta of 0.86. Cathay General Bancorp has a 52 week low of $36.06 and a 52 week high of $54.99.

Cathay General Bancorp (NASDAQ:CATY) last released its quarterly earnings data on Thursday, January 22nd. The bank reported $1.33 earnings per share for the quarter, topping the consensus estimate of $1.20 by $0.13. Cathay General Bancorp had a net margin of 22.76% and a return on equity of 10.89%. The company had revenue of $222.83 million for the quarter, compared to analyst estimates of $211.76 million. During the same period in the previous year, the business earned $1.12 EPS. Analysts predict that Cathay General Bancorp will post 4.47 earnings per share for the current fiscal year.

Cathay General Bancorp Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, March 9th. Stockholders of record on Thursday, February 26th will be issued a dividend of $0.38 per share. This is an increase from Cathay General Bancorp’s previous quarterly dividend of $0.34. This represents a $1.52 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date of this dividend is Thursday, February 26th. Cathay General Bancorp’s payout ratio is 33.48%.

Insider Buying and Selling

In related news, EVP Thomas M. Lo sold 1,000 shares of the company’s stock in a transaction on Thursday, January 29th. The shares were sold at an average price of $50.23, for a total value of $50,230.00. Following the completion of the transaction, the executive vice president directly owned 2,000 shares of the company’s stock, valued at approximately $100,460. This represents a 33.33% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 4.85% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in CATY. Norges Bank acquired a new stake in Cathay General Bancorp during the fourth quarter worth about $41,140,000. Northwestern Mutual Wealth Management Co. grew its position in Cathay General Bancorp by 1,274,076.3% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 484,187 shares of the bank’s stock worth $23,430,000 after acquiring an additional 484,149 shares during the last quarter. Millennium Management LLC increased its stake in shares of Cathay General Bancorp by 375.1% in the third quarter. Millennium Management LLC now owns 420,509 shares of the bank’s stock valued at $20,189,000 after buying an additional 331,997 shares during the period. CSM Advisors LLC bought a new position in shares of Cathay General Bancorp during the second quarter valued at $7,077,000. Finally, Edgestream Partners L.P. lifted its holdings in Cathay General Bancorp by 325.6% during the 2nd quarter. Edgestream Partners L.P. now owns 202,577 shares of the bank’s stock worth $9,223,000 after buying an additional 154,974 shares during the period. Institutional investors and hedge funds own 75.01% of the company’s stock.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on CATY. Weiss Ratings restated a “buy (b-)” rating on shares of Cathay General Bancorp in a report on Monday, December 29th. Wall Street Zen raised Cathay General Bancorp from a “sell” rating to a “hold” rating in a research report on Sunday, November 16th. Two investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $52.50.

About Cathay General Bancorp

Cathay General Bancorp is a bank holding company headquartered in Los Angeles, California, trading on NASDAQ under the symbol CATY. Its principal subsidiary, Cathay Bank, provides a full suite of financial services to commercial, institutional and retail clients. As a community-focused institution, the company emphasizes relationship banking and tailored solutions for businesses and individuals.

Founded in 1962 by a group of Chinese American entrepreneurs, Cathay has expanded from a single branch operation in downtown Los Angeles into one of the largest Asian-American banks in the United States.