Have Insiders Sold Cathay General Bancorp Shares Recently?

We wouldn't blame Cathay General Bancorp (NASDAQ:CATY) shareholders if they were a little worried about the fact that Peter Wu, the Vice Chairman of the Board recently netted about US$939k selling shares at an average price of US$46.97. However, that sale only accounted for 2.7% of their holding, so arguably it doesn't say much about their conviction.

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The Last 12 Months Of Insider Transactions At Cathay General Bancorp

In fact, the recent sale by Peter Wu was the biggest sale of Cathay General Bancorp shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$45.93. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Cathay General Bancorp insiders didn't buy any shares 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership Of Cathay General Bancorp

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. Cathay General Bancorp insiders own 4.7% of the company, currently worth about US$154m 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.

What Might The Insider Transactions At Cathay General Bancorp Tell Us?

Insiders haven't bought Cathay General Bancorp stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cathay General Bancorp. In terms of investment risks, we've identified 1 warning sign with Cathay General Bancorp and understanding this should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.