Have Cathay General Bancorp (NASDAQ:CATY) Insiders Been Selling Their Stock?

Anyone interested in Cathay General Bancorp (NASDAQ:CATY) should probably be aware that the Executive Chairman of the Board, Dunson Cheng, recently divested US$449k worth of shares in the company, at an average price of US$37.52 each. On the bright side, that sale was only 1.5% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for Cathay General Bancorp

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 what is clear is that an insider saw fit to sell at around the current price of US$37.24. 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.

In total, Cathay General Bancorp insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Cathay General Bancorp insiders own 4.9% of the company, worth about US$144m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

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

Insiders sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 2 warning signs for Cathay General Bancorp you should be aware of.

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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