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Cathay General Bancorp (CATY) Stock Analysis

Range Bound setup

HoldVALUE-TRAP 1/5Moderate Confidence

Financial Services · Banks - Regional

Hold if already holding. Not a fresh buy at $56.02, but acceptable to hold if already in. Reasons: Concentration risk — Geographic: California; Concentration risk — Loan Portfolio: commercial real estate and construction loans.

Cathay General Bancorp is the holding company of Cathay Bank, a California state-chartered commercial bank with $24.23B in total assets and $19.94B in net loans as of December 31, 2025. The bank serves Chinese-American communities through 61 US branches and one Hong Kong branch,... Read more

$56.02+1.5% A.UpsideScore 5.7/10#84 of 142 Banks - Regional
QualityF-score8 / 9FCF yield
IncomeYield2.55%(5y avg 3.22%)Payout28.87%sustainable
Stop $53.52Target $56.84(resistance)A.R:R -2.1:1
Analyst target$57.40+2.5%5 analysts
$56.84our TP
$56.02price
$57.40mean
$47
$70

Hold if already holding. Not a fresh buy at $56.02, but acceptable to hold if already in. Reasons: Concentration risk — Geographic: California; Concentration risk — Loan Portfolio: commercial real estate and construction loans. Chart setup: RSI 58 mid-range, Bollinger mid-band. Maintain position. Not compelling to add more. Score 5.7/10, moderate confidence.

Passes 6/8 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 63d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.

Recent Developments — Cathay General Bancorp

Generated 2026-05-20T21:06:21Z.

Thesis

Rewards
Sector modifier (Financial Services): +1.0
Strong earnings beat streak (3/4)
Attractive valuation
Risks
Concentration risk — Geographic: California
Concentration risk — Loan Portfolio: commercial real estate and construction loans
Analyst target reached - limited upside remaining

Key Metrics

P/E (TTM)11.7
P/E (Fwd)9.6
Mkt Cap$3.8B
EV/EBITDA
Profit Mgn43.2%
ROE11.4%
Rev Growth14.1%
Beta0.86
Dividend2.55%
Rating analysts10

Quality Signals

Piotroski F8/9

Options Flow

P/C0.50bullish
IV45%normal

Concentration Risks(10-K Item 1A)

  • HIGHGeographicCalifornia
    10-K Item 1A: 'Our banking operations are concentrated primarily in California, and secondarily in New York, Washington, Illinois, Texas, Maryland, Massachusetts, Nevada, New Jersey, and Hong Kong.'
  • HIGHloan_portfoliocommercial real estate and construction loans
    10-K Item 1A: 'As of December 31, 2025, we had approximately $10.90 billion in commercial real estate and construction loans.'
  • MEDIUMregulatoryCalifornia DFPI
    10-K Item 1: 'Cathay Bank is regulated as a California commercial bank by the California Department of Financial Protection and Innovation ("DFPI") and the Federal Deposit Insurance Corporation ("FDIC").'

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

1 floor-breaker

Momentum below the gate floor. Component breakdown shows what dragged the score down.static

Macd
0.0
Obv
1.0
Volume
1.8
Rsi
5.5
Ma Position
6.0
Volume distribution (falling OBV)Above 200-day MA
GatesMomentum 2.9<4.5A.R:R -2.1=NEGATIVEInsider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 63d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRange BoundSuitability: Aggressive
RSI
58 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $53.17Resistance $58.00

Price Targets

$54
$57
A.Upside+1.5%
A.R:R-2.1:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! Target reached (-10.9% upside)
! Momentum score 2.9/10 — below 4.5 minimum
! Negative risk/reward — downside exceeds upside

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-07-21 (63d)

Verdict History

reverse chrono — latest first
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Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is CATY stock a buy right now?

Hold if already holding. Not a fresh buy at $56.02, but acceptable to hold if already in. Reasons: Concentration risk — Geographic: California; Concentration risk — Loan Portfolio: commercial real estate and construction loans. Chart setup: RSI 58 mid-range, Bollinger mid-band. Maintain position. Not compelling to add more. Target $56.84 (+1.5%), stop $53.52 (−4.7%), A.R:R -2.1:1. Score 5.7/10, moderate confidence.

What is the CATY stock price target?

Take-profit target: $56.84 (+1.5% upside). Target $56.84 (+1.5%), stop $53.52 (−4.7%), A.R:R -2.1:1. Stop-loss: $53.52.

What are the risks of investing in CATY?

Concentration risk — Geographic: California; Concentration risk — Loan Portfolio: commercial real estate and construction loans; Analyst target reached - limited upside remaining.

Is CATY overvalued or undervalued?

Cathay General Bancorp trades at a P/E of 11.7 (forward 9.6). TrendMatrix value score: 7.6/10. Verdict: Hold.

What do analysts say about CATY?

10 analysts cover CATY with a consensus score of 2.6/5. Average price target: $57.

What does Cathay General Bancorp do?Cathay General Bancorp is the holding company of Cathay Bank, a California state-chartered commercial bank with $24.23B...

Cathay General Bancorp is the holding company of Cathay Bank, a California state-chartered commercial bank with $24.23B in total assets and $19.94B in net loans as of December 31, 2025. The bank serves Chinese-American communities through 61 US branches and one Hong Kong branch, offering commercial real estate loans, C&I lending, and SBA loans. Banking operations are concentrated primarily in California, secondarily in New York and other states.

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