Earnings and Growth Analysis : Cathay General Bancorp (NASDAQ:CATY)

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Earnings results for Cathay General Bancorp (NASDAQ:CATY)

Cathay General Bancorp is expected* to report earnings on 10/26/2020 after market close. The report will be for the fiscal Quarter ending Sep 2020. According to Zacks Investment Research, based on 5 analysts’ forecasts, the consensus EPS forecast for the quarter is $0.61. The reported EPS for the same quarter last year was $0.91.

Cathay General Bancorp last issued its earnings results on July 27th, 2020. The bank reported $0.68 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.57 by $0.11. The company earned $150.08 million during the quarter, compared to analysts’ expectations of $144.33 million. Cathay General Bancorp has generated $3.48 earnings per share over the last year and currently has a price-to-earnings ratio of 8.0. Cathay General Bancorp has confirmed that its next quarterly earnings report will be published on Monday, October 26th, 2020.

Analyst Opinion on Cathay General Bancorp (NASDAQ:CATY)

2 Wall Street analysts have issued ratings and price targets for Cathay General Bancorp in the last 12 months. Their average twelve-month price target is $26.00, predicting that the stock has a possible upside of 7.30%. The high price target for CATY is $27.00 and the low price target for CATY is $25.00. There are currently 2 hold ratings for the stock, resulting in a consensus rating of “Hold.”

Cathay General Bancorp has received a consensus rating of Hold. The company’s average rating score is 2.00, and is based on no buy ratings, 2 hold ratings, and no sell ratings. According to analysts’ consensus price target of $26.00, Cathay General Bancorp has a forecasted upside of 7.3% from its current price of $24.23. Cathay General Bancorp has only been the subject of 1 research reports in the past 90 days.

Dividend Strength: Cathay General Bancorp (NASDAQ:CATY)

Cathay General Bancorp is a leading dividend payer. It pays a dividend yield of 5.29%, putting its dividend yield in the top 25% of dividend-paying stocks. Cathay General Bancorp does not have a long track record of dividend growth. The dividend payout ratio of Cathay General Bancorp is 35.63%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Cathay General Bancorp will have a dividend payout ratio of 45.26% next year. This indicates that Cathay General Bancorp will be able to sustain or increase its dividend.

Insiders buying/selling: Cathay General Bancorp (NASDAQ:CATY)

In the past three months, Cathay General Bancorp insiders have bought more of their company’s stock than they have sold. Specifically, they have bought $655,500.00 in company stock and sold $0.00 in company stock. Only 4.73% of the stock of Cathay General Bancorp is held by insiders. 68.42% of the stock of Cathay General Bancorp is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Cathay General Bancorp (NASDAQ:CATY

Earnings for Cathay General Bancorp are expected to grow by 7.87% in the coming year, from $2.54 to $2.74 per share. The P/E ratio of Cathay General Bancorp is 8.02, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 19.64. The P/E ratio of Cathay General Bancorp is 8.02, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 18.43. Cathay General Bancorp has a P/B Ratio of 0.84. P/B Ratios below 1 indicate that a company could be undervalued with respect to its assets and liabilities.

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