Anthony M. Tang, Vice Chairman of Cathay General Bancorp (NASDAQ:CATY), a $3.66 billion financial institution trading at a P/E ratio of 13, recently sold $256,389 worth of company stock, according to a filing with the Securities and Exchange Commission. The transactions took place over two days, with Tang selling 2,500 shares on December 9 at an average price of $51.04 per share, and another 2,500 shares on December 10 at an average price of $51.52 per share. According to InvestingPro analysis, the stock currently appears slightly undervalued.
Following these transactions, Tang holds 191,292 shares of Cathay General Bancorp directly. Additionally, Tang maintains indirect ownership through various means, including shares held by his spouse and through an Employee Stock Ownership Plan (ESOP). The filing also noted that Tang's spouse is a beneficiary of YFO Investments, which holds 300,000 shares. The stock has shown strong momentum with a 46.5% return over the past six months and offers a 2.67% dividend yield, having maintained dividend payments for 34 consecutive years. InvestingPro subscribers can access additional insights and metrics in the comprehensive Pro Research Report.
The transactions reflect Tang’s ongoing management of his holdings in the Los Angeles-based financial institution.
In other recent news, Cathay General Bancorp displayed a stable Q3 performance with a slight increase in net income to $67.5 million and earnings per share rising to $0.94. The firm also announced plans to continue its stock repurchase program, aiming to buy back approximately $35 million in stock per quarter through the first quarter of 2025, subject to market conditions. Despite an earnings per share shortfall, Keefe, Bruyette & Woods maintains a Market Perform rating on Cathay General shares, attributing the discrepancy to increased credit costs driven by a significant rise in non-performing loans. The bank, however, continues to execute its share buyback strategy, suggesting active capital management despite the uptick in credit costs. Keefe, Bruyette & Woods has adjusted its earnings projections for Cathay General Bancorp, slightly reducing its earnings estimates for the years 2025 and 2026 by 1% and 2% respectively, reflecting a conservative outlook on the bank's net interest income. These are recent developments that highlight the bank's financial performance and strategic initiatives amidst market fluctuations. The bank also reported a marginal increase in total gross loans, largely driven by growth in commercial real estate loans, but non-accrual loans rose to 0.84% of total loans, primarily due to a $38 million loan becoming non-accrual.
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