We note that the Cathay General Bancorp (NASDAQ:CATY) Executive VP, Lisa Kim, recently sold US$50k worth of stock for US$37.04 per share. That might not be a huge sum but it was 76% of their personal holding, so we find it a little discouraging.
Cathay General Bancorp Insider Transactions Over The Last Year
The Executive Chairman of the Board, Dunson Cheng, made the biggest insider sale in the last 12 months. That single transaction was for US$676k worth of shares at a price of US$37.62 each. That means that an insider was selling shares at around the current price of US$36.83. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Cathay General Bancorp insiders didn’t buy any shares over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Cathay General Bancorp better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership of Cathay General Bancorp
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Cathay General Bancorp insiders own 4.7% of the company, currently worth about US$139m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Cathay General Bancorp Insider Transactions Indicate?
Insiders sold stock recently, but they haven’t been buying. Looking to the last twelve months, our data doesn’t show any insider buying. But it is good to see that Cathay General Bancorp is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn’t make us feel confident about the company. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Cathay General Bancorp may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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