Exploring Cathay General Bancorp (CATY) Investor Profile: Who’s Buying and Why?

Have you ever wondered who the major players are behind Cathay General Bancorp (CATY) and what drives their investment decisions? With institutional investors holding a significant 75% stake in the company, understanding their profile and motivations can provide valuable insights into the stock's potential. Are these investors in it for the long haul, or are they looking for short-term gains? Let's delve into the investor landscape of Cathay General Bancorp, exploring who's buying, who's selling, and, most importantly, why.

Cathay General Bancorp (CATY) Who Invests in Cathay General Bancorp (CATY) and Why?

Understanding the investor profile of Cathay General Bancorp (CATY) provides valuable insights into the market's perception of the company. By examining the types of investors, their motivations, and typical investment strategies, a clearer picture emerges regarding the factors driving investment decisions in CATY.

Key Investor Types:

The investor base of Cathay General Bancorp (CATY) is diverse, encompassing retail investors, institutional investors, and hedge funds. Each type brings unique investment horizons, risk tolerances, and expectations.

• Retail Investors: These individual investors often have varying levels of financial knowledge and may invest in CATY for long-term growth or dividend income.
• Institutional Investors: This group includes mutual funds, pension funds, insurance companies, and other large financial entities. They typically invest substantial amounts and conduct in-depth research before investing.
• Hedge Funds: These funds employ more aggressive strategies, including short-term trading and leveraging, to maximize returns. Their investment decisions are often based on technical analysis and short-term market trends.

Investment Motivations:

Several factors attract investors to Cathay General Bancorp (CATY). These motivations often align with the company's financial performance, growth prospects, and market position.

• Growth Prospects: Investors are drawn to CATY's potential for future growth, driven by its strategic initiatives, market expansion, and ability to capitalize on emerging opportunities.
• Dividends: CATY's dividend payouts can be a significant attraction for income-seeking investors, providing a steady stream of returns.
• Market Position: The company's established presence and competitive positioning in the market can instill confidence among investors, making it an appealing investment choice.

Investment Strategies:

Investors in Cathay General Bancorp (CATY) adopt various strategies, reflecting their individual investment goals and risk appetites.

• Long-Term Holding: Many investors view CATY as a stable, long-term investment, holding shares for extended periods to benefit from potential capital appreciation and dividend income.
• Short-Term Trading: Some investors engage in short-term trading, capitalizing on price fluctuations and market volatility to generate quick profits.
• Value Investing: Value investors seek undervalued companies with strong fundamentals, viewing CATY as an attractive investment opportunity when its stock price is below its intrinsic value.

For additional insights into the financial health of Cathay General Bancorp (CATY), you might find this resource helpful: Breaking Down Cathay General Bancorp (CATY) Financial Health: Key Insights for Investors

Cathay General Bancorp (CATY) Institutional Ownership and Major Shareholders of Cathay General Bancorp (CATY)

Institutional ownership in Cathay General Bancorp (CATY) reflects significant interest from major financial institutions. These entities often hold substantial shares, influencing the stock's price and the company's strategic direction. Examining the top institutional investors provides insights into market sentiment and potential stability of the stock.

Here are some of the top institutional investors in Cathay General Bancorp (CATY) and details about their holdings:

• BlackRock Fund Advisors: As of March 31, 2024, BlackRock Fund Advisors holds 1,498,595 shares, representing 1.94% ownership.
• Vanguard Total Stock Market Index Fund: As of March 31, 2024, Vanguard Total Stock Market Index Fund holds 1,392,898 shares, accounting for 1.80% ownership.
• Vanguard Small-Cap Index Fund: As of March 31, 2024, Vanguard Small-Cap Index Fund holds 1,221,987 shares, which translates to 1.58% ownership.
• Dimensional Fund Advisors LP: As of March 31, 2024, Dimensional Fund Advisors LP holds 1,003,599 shares, representing 1.30% ownership.
• State Street Global Advisors: As of March 31, 2024, State Street Global Advisors holds 649,432 shares, holding approximately 0.84% of the company.

Changes in institutional ownership can signal shifts in confidence and future stock performance. Increases in holdings may indicate a positive outlook, while decreases could suggest concerns about the company's prospects.

Recent changes in ownership (as of the periods indicated) include:

• Dimensional Fund Advisors LP: Increased holdings by 43,493 shares in Q1 2024, bringing their total to 1,003,599 shares.
• BlackRock Fund Advisors: Decreased holdings by 22,542 shares in Q1 2024, resulting in a total of 1,498,595 shares.
• Vanguard Total Stock Market Index Fund: Increased holdings by 2,921 shares in Q1 2024, reaching a total of 1,392,898 shares.
• Vanguard Small-Cap Index Fund: Increased holdings by 1,844 shares in Q1 2024, culminating in 1,221,987 shares.
• State Street Global Advisors: Decreased holdings by 14,238 shares in Q1 2024, ending with 649,432 shares.

Institutional investors play a crucial role in Cathay General Bancorp (CATY)'s stock dynamics. Their substantial holdings can reduce volatility and provide a stable investor base. Moreover, their trading activities can significantly influence stock prices, especially during large transactions.

The presence of prominent institutional investors often enhances a company's credibility, potentially attracting more investors. Their involvement can also impact corporate governance, as these large shareholders may push for strategies that maximize shareholder value.

For further insights into Cathay General Bancorp (CATY)'s financial standing, consider reading: Breaking Down Cathay General Bancorp (CATY) Financial Health: Key Insights for Investors

Cathay General Bancorp (CATY) Key Investors and Their Impact on Cathay General Bancorp (CATY)

Understanding the investor profile of Cathay General Bancorp (CATY) provides valuable insights into the company's stability, growth potential, and strategic direction. Key investors can significantly influence company decisions and stock movements, making it crucial to monitor their activity and understand their motivations.

As of March 31, 2024, Cathay General Bancorp's (CATY) ownership structure is composed of a mix of institutional and retail investors. A number of institutional investors hold significant positions in the company. According to recent data, 83.34% of the shares are held by institutional investors.

Here's a breakdown of some notable investors and their influence:

• Top Institutional Holders: Prominent institutional holders include BlackRock Fund Advisors with 9.89% ownership, The Vanguard Group, Inc. with 9.79%, and Dimensional Fund Advisors LP holding 4.89%. These major institutional investors often exert influence through their voting rights and engagement with the company's management on strategic issues.
• Hedge Funds: While specific hedge fund holdings can fluctuate, their presence can signal confidence or concerns about the company's near-term prospects. Monitoring their positions offers insights into sophisticated investment strategies.
• Retail Investors: A portion of Cathay General Bancorp (CATY) shares are held by retail investors. While individually their holdings may be small, collectively they can impact stock liquidity and sentiment.

The top ten institutional holders of Cathay General Bancorp (CATY) as of March 31, 2024, are:

Recent moves by major investors can provide signals about the stock's potential. For example, significant increases in holdings by institutional investors might indicate a positive outlook, while large sell-offs could suggest concerns. Monitoring these activities through regulatory filings (such as 13F filings) can offer timely insights.

Institutional investors like BlackRock and Vanguard often have a long-term investment horizon. Their substantial holdings can provide stability to the stock price and influence corporate governance through proxy voting. Activist investors, while not always present, can push for strategic changes to unlock value, such as restructuring, cost-cutting, or changes in capital allocation.

For more insights into Cathay General Bancorp, you might find this resource helpful: Cathay General Bancorp (CATY): History, Ownership, Mission, How It Works & Makes Money

Cathay General Bancorp (CATY) Market Impact and Investor Sentiment

Understanding investor sentiment and market reactions to Cathay General Bancorp (CATY) is crucial for assessing the stock's potential and stability. Several factors influence how investors perceive CATY, including institutional ownership, analyst ratings, and recent market activity. Here’s a breakdown of these elements:

Investor Sentiment:

• Currently, Cathay General Bancorp (CATY) is largely controlled by institutional shareholders, who own 75% of the company.
• A total of 9 investors have a majority stake in the company with 50% ownership.
• The general public, usually individual investors, holds a 20% stake in Cathay General Bancorp.
• Recent sales by insiders.

Major Shareholders:

• BlackRock, Inc. is the largest shareholder with 15% of shares outstanding.
• The Vanguard Group, Inc. holds 11% of shares.
• Dimensional Fund Advisors LP owns 6.0% of the shares.

Institutional Ownership:

• Institutional investors commonly compare their returns to those of a commonly followed index and consider buying larger companies included in benchmark indexes.
• A substantial amount of institutional money invested in a firm is generally viewed as a positive attribute, suggesting credibility amongst professional investors.
• However, institutions can also make poor investments, and a sudden shift in their view of a stock can cause rapid price declines.

Hedge Fund Activity:

• Cathay General Bancorp is not primarily owned by hedge funds.
• Based on 3 tracked hedge funds, holdings in Cathay General Bancorp (CATY) were increased by 113.0K shares last quarter.

Insider Ownership:

• Insiders own some shares in Cathay General Bancorp, amounting to approximately $135 million worth of shares.
• This level of investment by insiders is generally seen as a positive sign.

Recent Market Reactions:

• Recent trading saw NASDAQ: CATY up $0.29 on a Friday, reaching $38.63.
• The stock's trading volume was 581,995 shares, compared to its average volume of 352,260.
• The stock has a market cap of $2.70 billion, a P/E ratio of 9.76, and a beta of 0.99.
• Cathay General Bancorp has a 12-month low of $33.88 and a 12-month high of $55.29.
• The business's 50-day moving average price is $42.90, and its 200-day moving average price is $46.30.

Analyst Perspectives:

• The average one-year price target for Cathay General Bancorp is $53.45.
• Forecasts range from a low of $43.43 to a high of $59.85.
• Based on 11 Wall Street analysts, the stock ratings are 9% Buy, 54% Hold, and 36% Sell.
• The consensus rating from 8 analysts is Hold.

Earnings Estimates:

• Cathay General Bancorp is expected to report earnings on April 21, 2025, after market close, for the fiscal Quarter ending March 2025.
• The consensus EPS forecast for the quarter is $0.95, compared to $1.1 for the same quarter last year.
• For the fiscal year ending December 2025, the consensus EPS forecast has remained stable over the past week at $4.28 but decreased over the past month from $4.29.

Key Statistics (TTM - Trailing Twelve Months):

• Revenue: $692.2M.
• Earnings Per Share (EPS): $3.95.
• PE Ratio: 9.78.
• Dividend Yield: 3.52%.
• Profit Margin: 41.31%.
• Return on Equity: 10.25%.

Institutional Ownership Metrics (as of Q4 2023):

• Institutional Ownership: 74.3% of total shares outstanding.
• Top Institutional Investors:
  • Dimensional Fund Advisors LP: 9.2% ownership.
  • BlackRock Inc.: 7.8% ownership.
  • Vanguard Group Inc.: 6.9% ownership.
• Institutional investors increased holdings by 3.4% in the last quarter.
• Net institutional purchases totaled $187.5 million.
• The top 10 institutional investors control 42.6% of total shares.
• Total institutional investors: 482.
• Quarterly institutional turnover rate: 12.3%.
• Institutional ownership growth rate: 2.7% year-over-year.

Analyst Ratings Breakdown:

Additional Insights:

• Cathay General Bancorp will release its first quarter 2025 financial results after the market closes on Monday, April 21, 2025, followed by a conference call.
• Indian investors sentiment towards Cathay General Bancorp (CATY) shows increased interest, with search activity up 100% in the last 30 days.

For more insights into Cathay General Bancorp's (CATY) financial well-being, consider exploring:

Breaking Down Cathay General Bancorp (CATY) Financial Health: Key Insights for Investors