Investors following Cathay General Bancorp (NASDAQ:CATY) may be interested in the recent financial moves of the company's Vice Chairman, Anthony M. Tang. On July 25, 2024, Tang sold a total of 7,620 shares of Cathay General Bancorp's common stock, with the transactions amounting to over $342,976. The shares were sold at a price of $45.01 each.
Anthony M. Tang, who serves as both a director and an officer of the bank holding company, has been part of Cathay General Bancorp's leadership for an extended period. His recent sale has adjusted his direct holdings in the company to 199,292 shares following the transaction.
While the sale represents a significant amount of stock, it's important to note that Tang still maintains a substantial interest in the company. His indirect holdings through various entities, including shares owned by his spouse and those held by an Employee Stock Ownership Plan (ESOP), continue to reflect his vested interest in Cathay General Bancorp's performance.
The sale of these shares was conducted in a manner consistent with regulatory requirements and was disclosed in a timely fashion to the Securities and Exchange Commission. As with any transaction of this nature, investors often monitor such moves by company insiders as they may provide insight into their perspective on the company's current valuation and future prospects.
Cathay General Bancorp, incorporated in Delaware and headquartered in Los Angeles, California, operates as a commercial bank under the industrial classification of State Commercial Banks. The company has a long-standing presence in the financial sector and continues to be a key player in the banking industry.
It's worth mentioning that the disclosed transactions do not necessarily indicate a change in company strategy or performance and are a routine part of personal financial management for many executives and directors. Shareholders and potential investors in Cathay General Bancorp should consider a wide range of factors when assessing the company's health and future potential.
In other recent news, Cathay General Bancorp has reported a decrease in its net income and diluted earnings per share in the second quarter. The company's net income fell by 6.4% to $66.8 million, while diluted earnings per share saw a 6.1% decline to $0.92. Additionally, total gross loans and deposits witnessed a reduction, with an increase in capital ratios.
Truist Securities has updated its outlook on Cathay General Bancorp, increasing the price target to $45 from the previous $38, while retaining a Hold rating on the stock. The revised Core EPS forecasts are now set at $4.20 for 2024 and $3.95 for 2025, marking a 4% and 2% increase respectively.
These changes are primarily 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, the firm anticipates that net charge-offs will remain manageable moving forward. Cathay General Bancorp maintains a cautious but stable outlook for its financial trajectory.
InvestingPro Insights
As investors digest the recent insider sale by Cathay General Bancorp's Vice Chairman Anthony M. Tang, it's essential to consider the company's financial health and market performance. InvestingPro data shows that 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 considering the last twelve months as of Q2 2024. These metrics suggest a valuation that may appeal to value-oriented investors.
Additionally, despite a decrease in revenue growth by 9.45% over the last twelve months as of Q2 2024, Cathay General Bancorp has demonstrated a strong return over the last month, with a 16.62% increase in its stock price. This performance aligns with one of the InvestingPro Tips, indicating that the company has maintained robust returns over the recent period.
Moreover, Cathay General Bancorp has upheld its dividend payments for 34 consecutive years, showcasing a commitment to shareholder returns. The current dividend yield stands at 3.09%, with the last dividend having an ex-date of May 30, 2024. This long-standing dividend history is a testament to the company's financial stability and may be particularly attractive to income-focused investors.
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