In a recent transaction, Kim R. Bingham, EVP and Chief Risk Officer at Cathay General Bancorp (NASDAQ:CATY), sold 6,000 shares of the company's common stock for a total value of approximately $269,346. The sale took place on July 25, 2024, with the shares being sold at an average price of $44.891 each.
The transaction was disclosed in a legal filing with the Securities and Exchange Commission (SEC), which provides investors with insights into the trading activities of the company's insiders. Following the sale, Bingham's direct holdings in Cathay General Bancorp decreased to 45,530 shares.
Cathay General Bancorp, headquartered in Los Angeles, California, operates as the holding company for Cathay Bank, offering a range of financial services. Investors and analysts often monitor insider sales as they may provide valuable context to the company's financial health and future prospects.
The sale represents a significant transaction for Bingham, who serves as an executive officer of the bank. It is important for investors to note that the shares were sold indirectly by the Bingham Trust, as indicated in the SEC filing.
Investors who follow Cathay General Bancorp can stay updated on insider transactions like this one to better understand how the actions of key executives align with their investment strategies and the performance of the company's stock.
In other recent news, Cathay General Bancorp reported a decline in its second-quarter net income and diluted earnings per share by 6.4% and 6.1% respectively. The company's net income fell to $66.8 million, while diluted earnings per share decreased to $0.92. This financial performance led to Truist Securities revising its price target for Cathay General Bancorp to $45, up from $38, while maintaining a Hold rating on the stock.
The revised Core Earnings Per Share forecasts for 2024 and 2025 are now set at $4.20 and $3.95, marking a 4% and 2% increase respectively. This adjustment is mainly due to an anticipated higher Net Interest Margin, reduced expenses projected for 2025, and a lower tax rate expected in the second half of 2024.
Despite a notable increase in classified loans in the recent quarter, Truist Securities anticipates that net charge-offs will remain manageable moving forward. Cathay General Bancorp revised its loan growth outlook downward, expecting commercial real estate to be the main growth driver in a challenging economic environment. The company, however, has no current plans for mergers and acquisitions. These are the recent developments for Cathay General Bancorp.
InvestingPro Insights
As Cathay General Bancorp (NASDAQ:CATY) continues to navigate the financial sector, certain metrics and expert analyses can provide investors with a deeper understanding of the company's current standing. According to InvestingPro data, Cathay General Bancorp has a market capitalization of $3.18 billion and a Price/Earnings (P/E) ratio of 10.55, which adjusts slightly to 10.75 when looking at the last twelve months as of Q2 2024. This indicates a valuation that may appeal to value-oriented investors.
With a dividend yield of 3.09% as of the last dividend ex-date on May 30, 2024, Cathay has demonstrated a commitment to returning value to shareholders, maintaining dividend payments for 34 consecutive years. This is a testament to the company's financial stability and could be a reassuring sign for income-focused investors. Additionally, the company has seen a strong 1-month price total return of 16.62% and an even stronger 3-month return of 27.76%, which may attract the attention of momentum investors.
InvestingPro Tips highlight that Cathay General Bancorp has high shareholder yield and that 5 analysts have revised their earnings upwards for the upcoming period, suggesting a potentially optimistic outlook on the company's earnings potential. On the other side, the company suffers from weak gross profit margins and net income is expected to drop this year, which are factors that investors should consider when evaluating the company's overall health.
For investors seeking more detailed analyses and additional InvestingPro Tips, there are 8 more tips available that can provide further insights into Cathay General Bancorp's financial performance and projections. To explore these tips and enhance your investment strategy, consider using the promo code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at https://www.investing.com/pro/CATY.
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