Cathay General Bancorp (NASDAQ:CATY) Downgraded by Zacks Investment Research

Cathay General Bancorp (NASDAQ:CATY) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Wednesday, Zacks.com reports.

According to Zacks, “Cathay General Bancorp is the one-bank holding company for Cathay Bank, a California state-chartered bank. Cathay Bank offers a wide range of financial services. Cathay Bank currently operates branches in California, New York State, Massachusetts, Houston, Texas, Washington State, and representative offices in Hong Kong and Shanghai, China. In addition, Cathay Bank’s subsidiaries, Cathay Investment Company and GBC Investment & Consulting Company, Inc., each maintain an office in Taipei. “

CATY has been the subject of a number of other reports. Piper Sandler began coverage on Cathay General Bancorp in a research note on Wednesday, June 3rd. They set a “hold” rating and a $28.00 price target for the company. BidaskClub lowered Cathay General Bancorp from a “sell” rating to a “strong sell” rating in a research note on Friday, August 21st. Finally, SunTrust Banks raised their price objective on Cathay General Bancorp from $24.00 to $27.00 and gave the company a “hold” rating in a research note on Tuesday, May 19th. Three investment analysts have rated the stock with a sell rating, two have given a hold rating and one has assigned a buy rating to the company’s stock. The stock presently has a consensus rating of “Hold” and an average target price of $30.75.

Cathay General Bancorp stock traded up $0.40 during midday trading on Wednesday, reaching $23.46. 436,445 shares of the stock traded hands, compared to its average volume of 392,385. The stock’s fifty day moving average is $25.14 and its 200-day moving average is $25.25. Cathay General Bancorp has a 12 month low of $17.58 and a 12 month high of $38.91. The stock has a market cap of $1.87 billion, a P/E ratio of 7.77 and a beta of 1.42. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.16.

Cathay General Bancorp (NASDAQ:CATY) last announced its quarterly earnings results on Monday, July 27th. The bank reported $0.68 EPS for the quarter, beating analysts’ consensus estimates of $0.57 by $0.11. Cathay General Bancorp had a return on equity of 10.50% and a net margin of 30.55%. The company had revenue of $150.08 million during the quarter, compared to analyst estimates of $144.33 million. During the same period in the prior year, the company earned $0.90 earnings per share. On average, equities analysts predict that Cathay General Bancorp will post 2.58 EPS for the current fiscal year.

In related news, Director Richard Sun acquired 14,100 shares of the stock in a transaction dated Tuesday, August 4th. The stock was acquired at an average cost of $30.00 per share, with a total value of $423,000.00. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 4.73% of the stock is owned by company insiders.

Hedge funds and other institutional investors have recently modified their holdings of the company. Zurcher Kantonalbank Zurich Cantonalbank raised its holdings in shares of Cathay General Bancorp by 41.7% in the first quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 6,377 shares of the bank’s stock worth $146,000 after buying an additional 1,877 shares during the period. IndexIQ Advisors LLC purchased a new stake in shares of Cathay General Bancorp in the first quarter worth approximately $189,000. Pillar Pacific Capital Management LLC purchased a new stake in shares of Cathay General Bancorp in the second quarter worth approximately $213,000. Coldstream Capital Management Inc. purchased a new stake in shares of Cathay General Bancorp in the first quarter worth approximately $214,000. Finally, State of Tennessee Treasury Department purchased a new stake in shares of Cathay General Bancorp in the second quarter worth approximately $230,000. Hedge funds and other institutional investors own 68.42% of the company’s stock.

About Cathay General Bancorp

Cathay General Bancorp operates as the holding company for Cathay Bank that offers various commercial banking products and services to individuals, professionals, and small to medium-sized businesses in the United States. The company offers various deposit products, including passbook accounts, checking accounts, money market deposit accounts, certificates of deposit, individual retirement accounts, and public funds deposits.

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