A Director at Cathay General Bancorp is Exercising Options

By Carrie Williams

Today, a Director at Cathay General Bancorp, Nelson Chung, exercised options of Cathay General Bancorp for $81.8K. The options were close to expired and Nelson Chung retained stocks.

Following Nelson Chung’s last CATY Buy transaction on June 10, 2011, the stock climbed by 30.4%. This recent transaction increases Nelson Chung’s holding in the company by 13.37% to a total of $1.32 million.

Based on Cathay General Bancorp’s latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $162 million and quarterly net profit of $49.75 million. In comparison, last year the company earned revenue of $139 million and had a net profit of $48.02 million. The company has a one-year high of $45.54 and a one-year low of $34. CATY’s market cap is $3.52B and the company has a P/E ratio of 18.02.

Eight different firms, including BMO Capital and KBW, currently also have a Buy rating on the stock. One of the top 25 analysts, according to TipRanks.com, recently recommended Hold CATY with a $44 price target. Based on 6 analyst ratings, the analyst consensus is Moderate Buy with an average price target of $46.33, reflecting a -3.9% downside.

In the last 30 days, insiders have sold $2.12M worth of CATY shares and purchased $81.8K worth of CATY shares. The insider sentiment on Cathay General Bancorp has been negative according to 45 insider trades in the past three months. This sentiment is lower than the average sentiment of company insiders in this sector.

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Cathay General Bancorp is the holding company for Cathay Bank, a California state-chartered commercial bank. The company offers checking, savings, and time deposits, and makes commercial, real estate, personal, home improvement, automobile, and other installment and term loans.