LOS ANGELES—Peter Wu, Vice Chairman of Cathay Normal Bancorp (NASDAQ:), not too long ago offered 40,000 shares of the corporate’s frequent inventory. The shares had been offered on November 6 at a weighted-average worth of $52.87, leading to a complete transaction worth of roughly $2.11 million. The sale occurred at costs starting from $52.55 to $53.18 per share.
Following this transaction, Wu holds 295,252 shares not directly by means of PACJU, LLC, and 396,901 shares by means of the Wu Household Belief. This exercise was disclosed in a Kind 4 submitting with the Securities and Alternate Fee.
In different latest information, Cathay Normal Bancorp reported a steady third quarter, with a slight improve in internet revenue to $67.5 million, a 1% rise from the earlier quarter. The financial institution’s diluted earnings per share additionally grew to $0.94. Moreover, the corporate introduced its plan to proceed its inventory repurchase program, aiming to purchase again about $35 million in inventory per quarter by means of the primary quarter of 2025, topic to market situations.
Regardless of an earnings per share shortfall, Keefe, Bruyette & Woods maintained its Market Carry out score on Cathay Normal shares. The shortfall was largely attributable to elevated credit score prices, pushed by a big rise in non-performing loans, up 53% from the final quarter. Nevertheless, the agency adjusted its earnings projections for Cathay Normal Bancorp, barely decreasing its estimates for the years 2025 and 2026 by 1% and a couple of%, respectively.
These latest developments additionally embody a marginal improve in complete gross loans, primarily pushed by progress in industrial actual property loans. Nevertheless, non-accrual loans rose to 0.84% of complete loans, largely attributable to a $38 million mortgage changing into non-accrual. Regardless of these challenges, Cathay Normal Bancorp continues to actively handle its capital allocation to create worth for shareholders.
InvestingPro Insights
Peter Wu’s latest sale of Cathay Normal Bancorp shares comes at a time when the corporate’s inventory has proven important momentum. In line with InvestingPro information, CATY has demonstrated robust returns throughout a number of timeframes, with a notable 51.45% worth complete return over the previous 12 months and a 38.15% return within the final six months.
These strong returns align with an InvestingPro Tip indicating that CATY has skilled a “Vital return over the past week,” which can have influenced the timing of Wu’s sale. The inventory’s present worth can also be hovering close to its 52-week excessive, at 96.09% of that peak.
Regardless of the robust inventory efficiency, it is value noting that CATY’s income progress has been unfavorable, with a -8.74% decline within the final twelve months. This contrasts with the corporate’s engaging valuation metrics, together with a P/E ratio of 12.85, which suggests the inventory should still be fairly priced relative to earnings.
Buyers must also think about that CATY “Has maintained dividend funds for 34 consecutive years,” as highlighted by one other InvestingPro Tip. This long-standing dedication to shareholder returns, coupled with a present dividend yield of two.66%, could present some reassurance to long-term buyers regardless of the insider sale.
For these in search of a extra complete evaluation, InvestingPro affords 11 further suggestions for CATY, offering deeper insights into the corporate’s monetary well being and market place.
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