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    Cathay General Bancorp (CATY): Reassessing Valuation After Ongoing Profit Declines and Bearish Insider and Analyst Signals

    Simply Wall St·12/20/2025 14:12:54
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    Cathay General Bancorp (CATY) is back in focus after another year of sliding sales and earnings, with fresh bearish analyst views and insider share sales raising sharper questions about its profit trajectory.

    See our latest analysis for Cathay General Bancorp.

    Even with that cautious backdrop, Cathay General Bancorp's share price has quietly edged up to about $50.45, with a solid 1 month share price return of 9.29 percent and an impressive 5 year total shareholder return of 88.24 percent, suggesting long term momentum is still largely intact.

    If this mix of pressure and resilience has you rethinking your bank exposure, it could be a good moment to explore other financial names via fast growing stocks with high insider ownership.

    With profits under pressure but the share price still grinding higher, is Cathay General Bancorp quietly trading at a discount to its true value, or are investors already pricing in a stronger growth rebound ahead?

    Most Popular Narrative Narrative: 3.4% Undervalued

    With Cathay General Bancorp last closing at $50.45 versus a narrative fair value near $52.20, the prevailing storyline leans toward a modest upside case built on steady execution rather than dramatic change.

    The analysts have a consensus price target of $51.6 for Cathay General Bancorp based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $60.0, and the most bearish reporting a price target of just $45.0.

    Read the complete narrative.

    Want to see what is really powering that fair value, beyond a simple multiple tweak and small discount rate shift? The narrative focuses on methodical revenue expansion, incremental margin compression, and a future earnings base that quietly pushes per share profits higher while the valuation multiple edges lower. Curious how those moving parts still add up to upside from today’s price? Dive in to unpack the precise growth and profitability path behind this call.

    Result: Fair Value of $52.2 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, emerging credit costs and Cathay’s concentrated commercial real estate exposure could quickly challenge assumptions around smooth margin compression and predictable earnings growth.

    Find out about the key risks to this Cathay General Bancorp narrative.

    Build Your Own Cathay General Bancorp Narrative

    If you are not fully convinced by this storyline, or would rather rely on your own analysis, you can build a personalized view in just a few minutes, starting with Do it your way.

    A great starting point for your Cathay General Bancorp research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

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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.