Cathay General Bancorp faces trimming from institutional investors amid speculation of Fintech disruption

Ceredex Value Advisors LLC, a notable institutional investor, reportedly lessened its holdings in Cathay General Bancorp by 8.1% in the fourth quarter of last year. The company reportedly owned over 322,000 shares of the bank’s stock – a value worth approximately $13,146,000 at the end of the reporting period. The Form 13F filing with the Securities and Exchange Commission (SEC) confirmed that Ceredex currently owns about 0.43% of Cathay General Bancorp.

Meanwhile, Cathay General Bancorp vice chairman — Anthony M. Tang — sold 5,000 shares of the bank’s stock on Feb. 7 at an average price of $45.20 per share; he paid out a total transaction value given at $226,000. Insider reports have revealed that after this transaction, Tang now owns nearly 209,000 shares of the bank’s parent company.

Cathay General Bancorp is represented on the NASDAQ under the ticker symbol CATY and opened today at $34.05 per share – significantly lower than its 12-month high of $47.30, but still has a market capitalization of about $2.47 billion at a price -to-earnings ratio of just over seven and a beta factor rating of around 1.17.

Analysts have noted that while CATY experienced some trimming from Ceredex’s portfolio last quarter following Tang’s sale earlier this month; Insiders still retain an impressive enough stake worth roughly $56 million combined.

The moves have sparked speculation that more institutional shareholders may choose to reduce exposure to stocks held in traditional banks such as Cathay General Bancorp, aligning themselves with fintech startups that are expected to disrupt banking traditions with innovative technologies powered by cutting-edge artificial intelligence applications and alternative funding platforms.

In summary, analysts agree that shares in Cathay General Bancorp have taken a tumble of late, but with insiders still holding significant stakes in the firm and speculation around broader market trends – some are keeping a close eye on the bank’s future developments.

Cathay General Bancorp: Spotlight on recent changes and reports

Cathay General Bancorp: A review of recent changes and reports

Cathay General Bancorp (NASDAQ: CATY ) has recently faced a number of changes, including the increase in stakes from hedge funds and institutional investors such as Covestor Ltd, Point72 Hong Kong Ltd, Picton Mahoney Asset Management, Quantbot Technologies LP and Verition Fund Management LLC. As of now, 67.15% of the share is owned by these investors.

An analysis by Stephens resulted in raising the target price on Cathay General Bancorp from $43.00 to $44.00 on January 26, while StockNews.com initiated coverage of the company with a “hold” rating on the stock. Piper Sandler also decreased their target price on Cathay General Bancorp from $47.00 to $46.00 and issued a “neutral” rating in a report on February 7th.

In another update related to Cathay General Bancorp Vice Chairman Anthony M. Tang sold five thousand shares at an average price of $45.20 in February before maintaining his insider position with 4.30% of CATY’s total shares.

On Jan. 25, the bank reported fourth-quarter earnings per share of $1.33, which delivered a high earnings margin compared to analyst estimates and considering that revenue rose 22% compared to last year’s results, when it earned 98 cents EPS.

Finally, Cathay General Bancorp declared a quarterly dividend with shareholders receiving a dividend payout ratio (DPR) of 28.04% and representing a dividend yield of just under four percent assuming they were owners on the February 27 record date.

Despite some negative reports over the past few months affecting Cathey’s performance against industry averages, many remain confident in the bank’s future prospects, while others remain cautious yet willing to monitor updates and changes at the company as it attracts both consumers and investors.