LOS ANGELES—Anthony M. Tang, Vice Chairman of Cathay General Bancorp (NASDAQ:CATY), recently sold 3,000 shares of the company's common stock. The transaction, which took place on November 6, 2024, was executed at a price of $52.27 per share, amounting to a total value of $156,810.
Following this sale, Tang retains direct ownership of 196,292 shares. Additionally, Tang holds indirect ownership through various means, including 360,542 shares by spouse, 114,413 shares by ESOP, and 300,000 shares through YFO Investments, where his spouse is a beneficiary.
This transaction marks a continuation of Tang's engagement with the company's equity, reflecting a portion of his holdings in Cathay General Bancorp, a prominent player in the state commercial banks sector based in Los Angeles, California.
In other recent news, Cathay General Bancorp posted a stable Q3 with a slight increase in net income and earnings per share. The net income rose to $67.5 million, marking a 1% increase from the previous quarter, while diluted earnings per share grew to $0.94. The company 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, Cathay General has retained its Market Perform rating from Keefe, Bruyette & Woods, a decision influenced by increased credit costs and a significant rise in non-performing loans. The firm has slightly adjusted its earnings estimates for Cathay General Bancorp for the years 2025 and 2026 by 1% and 2%, respectively. This adjustment reflects a more conservative outlook on the bank's net interest income. In other company developments, total gross loans saw a marginal increase, largely driven by growth in commercial real estate loans. However, non-accrual loans rose to 0.84% of total loans, primarily due to a $38 million loan becoming non-accrual. Lastly, the Tier 1 leverage capital ratio saw a slight decrease to 10.82%.
InvestingPro Insights
In light of Anthony M. Tang's recent stock sale, it's worth examining some key financial metrics and trends for Cathay General Bancorp (NASDAQ:CATY). According to InvestingPro data, the company currently boasts a market capitalization of $3.65 billion and a price-to-earnings ratio of 12.85, suggesting a relatively modest valuation compared to some peers in the banking sector.
Cathay General Bancorp has demonstrated strong market performance recently, with InvestingPro data showing impressive returns across various timeframes. The stock has seen a significant 11.28% return over the past week and a robust 51.45% return over the last year. This positive momentum aligns with an InvestingPro Tip indicating that the company has experienced a "significant return over the last week."
Another noteworthy InvestingPro Tip highlights that Cathay General Bancorp "has maintained dividend payments for 34 consecutive years." This consistent dividend history may be attractive to income-focused investors, especially considering the current dividend yield of 2.66%.
It's important to note that while the company has shown strong stock performance, an InvestingPro Tip cautions that Cathay General Bancorp "suffers from weak gross profit margins." This factor may be worth monitoring for potential impacts on future financial results.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Cathay General Bancorp, providing a deeper dive into the company's financial health and market position.
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