Have Cathay General Bancorp Insiders Been Selling Stock?

We wouldn't blame Cathay General Bancorp (NASDAQ:CATY) shareholders if they were a little worried about the fact that Dunson Cheng, the Executive Chairman of the Board recently netted about US$1.2m selling shares at an average price of US$46.87. However, that sale only accounted for 3.0% of their holding, so arguably it doesn't say much about their conviction.

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Cathay General Bancorp Insider Transactions Over The Last Year

In fact, the recent sale by Dunson Cheng was the biggest sale of Cathay General Bancorp shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$47.83. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. 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 companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Cathay General Bancorp

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Does Cathay General Bancorp Boast High Insider Ownership?

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 about US$160m worth of shares (which is 4.9% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Cathay General Bancorp Insiders?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Cathay General Bancorp makes money, and is growing profits. 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. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Cathay General Bancorp has 1 warning sign we think you should be aware of.

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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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.