Cathay General Bancorp Stock Buy Hold or Sell Recommendation
| CATY Stock | USD 35.53 0.64 1.83% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Cathay General Bancorp is 'Hold'. Macroaxis provides Cathay General buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding CATY positions. The advice algorithm takes into account all of Cathay General's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Cathay General's buy or sell advice are summarized below:
Real Value 37.28 | Target Price 37.33 | Hype Value 35.55 | Market Value 35.53 | Naive Value 35.48 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Cathay General Bancorp given historical horizon and risk tolerance towards Cathay General. When Macroaxis issues a 'buy' or 'sell' recommendation for Cathay General Bancorp, the advice is generated through an automated system that utilizes algorithms and statistical models.
Cathay |
Execute Cathay General Buy or Sell Advice
The Cathay recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Cathay General Bancorp. Macroaxis does not own or have any residual interests in Cathay General Bancorp or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Cathay General's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Inapplicable | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Cathay General Trading Alerts and Improvement Suggestions
| Cathay General generated a negative expected return over the last 90 days | |
| Over 76.0% of the company shares are held by institutions such as insurance companies | |
| On 11th of March 2024 Cathay General paid $ 0.34 per share dividend to its current shareholders | |
| Latest headline from investing.com: Cathay General stock target cut, keeps rating on Q1 performance |
Cathay General Returns Distribution Density
The distribution of Cathay General's historical returns is an attempt to chart the uncertainty of Cathay General's future price movements. The chart of the probability distribution of Cathay General daily returns describes the distribution of returns around its average expected value. We use Cathay General Bancorp price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Cathay General returns is essential to provide solid investment advice for Cathay General.
| Mean Return | -0.27 | Value At Risk | -4.71 | Potential Upside | 3.57 | Standard Deviation | 2.12 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Cathay General historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Cathay Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Cathay General is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Cathay General Bancorp backward and forwards among themselves. Cathay General's institutional investor refers to the entity that pools money to purchase Cathay General's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Lsv Asset Management | 2023-12-31 | 1.1 M | Northern Trust Corp | 2023-12-31 | 1 M | Btim Corp | 2023-12-31 | 970.5 K | Bank Of New York Mellon Corp | 2023-12-31 | 900.7 K | American Century Companies Inc | 2023-12-31 | 868.5 K | First Trust Advisors L.p. | 2023-12-31 | 861.4 K | Nuveen Asset Management, Llc | 2023-12-31 | 830.1 K | Gw&k Investment Management, Llc | 2023-12-31 | 798.8 K | Norges Bank | 2023-12-31 | 775.5 K | Blackrock Inc | 2023-12-31 | 10.7 M | Vanguard Group Inc | 2023-12-31 | 8.3 M |
Cathay General Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | (6.5M) | 827.3M | 1.0B | (1.3B) | (333.6M) | (316.9M) | |
| Free Cash Flow | 427.8M | 314.2M | 330.6M | 464M | 381.3M | 400.4M | |
| Depreciation | 15.1M | 16.5M | 16.1M | 19.8M | 18.1M | 9.4M | |
| Other Non Cash Items | 103.5M | 120.2M | 38.5M | 58.8M | 86.0M | 90.3M | |
| Dividends Paid | 99.1M | 98.7M | 99.3M | 101.0M | 98.6M | 103.6M | |
| Capital Expenditures | 7.1M | 5.8M | 3.7M | 3.4M | 3.4M | 5.3M | |
| Net Income | 279.1M | 228.9M | 298.3M | 360.6M | 354.1M | 371.8M | |
| End Period Cash Flow | 593.8M | 1.4B | 2.4B | 1.2B | 828.8M | 870.2M | |
| Investments | (1.3B) | (161.6M) | (830.5M) | (1.8B) | (1.1B) | (1.1B) | |
| Net Borrowings | 84.6M | (553.3M) | (130M) | 465M | 534.8M | 561.5M | |
| Change To Netincome | 52K | 31.8M | (13.0M) | 64.5M | 74.2M | 77.9M |
Cathay General Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Cathay General or Banks sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Cathay General's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Cathay stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | -0.4 | |
β | Beta against NYSE Composite | 1.37 | |
σ | Overall volatility | 2.14 | |
Ir | Information ratio | -0.17 |
Cathay General Volatility Alert
Cathay General Bancorp exhibits very low volatility with skewness of -0.33 and kurtosis of 1.02. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Cathay General's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Cathay General's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Cathay General Fundamentals Vs Peers
Comparing Cathay General's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Cathay General's direct or indirect competition across all of the common fundamentals between Cathay General and the related equities. This way, we can detect undervalued stocks with similar characteristics as Cathay General or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Cathay General's fundamental indicators could also be used in its relative valuation, which is a method of valuing Cathay General by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Cathay General to competition |
| Fundamentals | Cathay General | Peer Average |
| Return On Equity | 0.12 | -0.31 |
| Return On Asset | 0.0145 | -0.14 |
| Profit Margin | 0.43 % | (1.27) % |
| Operating Margin | 0.58 % | (5.51) % |
| Current Valuation | 2.81 B | 16.62 B |
| Shares Outstanding | 72.69 M | 571.82 M |
| Shares Owned By Insiders | 5.71 % | 10.09 % |
| Shares Owned By Institutions | 76.33 % | 39.21 % |
| Number Of Shares Shorted | 1.91 M | 4.71 M |
| Price To Earning | 14.38 X | 28.72 X |
| Price To Book | 0.94 X | 9.51 X |
| Price To Sales | 3.27 X | 11.42 X |
| Revenue | 1.3 B | 9.43 B |
| Gross Profit | 775.97 M | 27.38 B |
| EBITDA | 1.31 M | 3.9 B |
| Net Income | 354.12 M | 570.98 M |
| Cash And Equivalents | 200.05 M | 2.7 B |
| Cash Per Share | 2.72 X | 5.01 X |
| Total Debt | 709.72 M | 5.32 B |
| Debt To Equity | 0.08 % | 48.70 % |
| Book Value Per Share | 38.22 X | 1.93 K |
| Cash Flow From Operations | 384.74 M | 971.22 M |
| Short Ratio | 4.08 X | 4.00 X |
| Earnings Per Share | 4.86 X | 3.12 X |
| Price To Earnings To Growth | 2.08 X | 4.89 X |
| Target Price | 40.83 | |
| Number Of Employees | 1.25 K | 18.84 K |
| Beta | 1.11 | -0.15 |
| Market Capitalization | 2.54 B | 19.03 B |
| Total Asset | 23.1 B | 29.47 B |
| Retained Earnings | 2.5 B | 9.33 B |
| Annual Yield | 0.04 % | |
| Five Year Return | 3.25 % |
Note: Discretionary transaction by Richard Sun of tradable shares of Cathay General subject to Rule 16b-3 [view details]
Cathay General Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Cathay . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Cathay General Buy or Sell Advice
When is the right time to buy or sell Cathay General Bancorp? Buying financial instruments such as Cathay Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Total Stockholder Equity | 2.4B | 2.5B | 2.7B | 2.9B | Total Assets | 20.9B | 22.0B | 23.1B | 24.3B |
Use Investing Ideas to Build Portfolios
In addition to having Cathay General in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Chemicals Makers Theme or any other thematic opportunities.
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Check out Cathay General Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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When running Cathay General's price analysis, check to measure Cathay General's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cathay General is operating at the current time. Most of Cathay General's value examination focuses on studying past and present price action to predict the probability of Cathay General's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cathay General's price. Additionally, you may evaluate how the addition of Cathay General to your portfolios can decrease your overall portfolio volatility.
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Is Cathay General's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cathay General. If investors know Cathay will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cathay General listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.26) | Dividend Share 1.36 | Earnings Share 4.86 | Revenue Per Share 10.45 | Quarterly Revenue Growth (0.13) |
The market value of Cathay General Bancorp is measured differently than its book value, which is the value of Cathay that is recorded on the company's balance sheet. Investors also form their own opinion of Cathay General's value that differs from its market value or its book value, called intrinsic value, which is Cathay General's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cathay General's market value can be influenced by many factors that don't directly affect Cathay General's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cathay General's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cathay General is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cathay General's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.