U.S. Markets open in 21 mins

Don't Ignore The Fact That This Insider Just Sold Some Shares In Cathay General Bancorp (NASDAQ:CATY)

Simply Wall St

Anyone interested in Cathay General Bancorp (NASDAQ:CATY) should probably be aware that the Vice Chairman of the Board, Anthony Tang, recently divested US$366k worth of shares in the company, at an average price of US$36.59 each. On the bright side, that sale was only 1.0% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for Cathay General Bancorp

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$1.2m worth of shares at a price of US$38.69 each. So we know that an insider sold shares at around the present share price of US$37.10. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

In total, Cathay General Bancorp insiders sold more than they bought over the last year. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

NasdaqGS:CATY Recent Insider Trading, November 9th 2019

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.

Does Cathay General Bancorp Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Cathay General Bancorp insiders own 4.8% of the company, worth about US$142m. 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 Do The Cathay General Bancorp Insider Transactions Indicate?

Insiders sold Cathay General Bancorp shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Cathay General Bancorp makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. 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.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.