Is Cathay General Bancorp (CATY) A Good Stock To Buy?

Judging by the fact that Cathay General Bancorp (NASDAQ:CATY) has faced declining sentiment from hedge fund managers, we can see that there exists a select few funds that decided to sell off their full holdings last quarter. Interestingly, Principal Global Investors’ Columbus Circle Investors got rid of the largest stake of all the hedgies studied by Insider Monkey, worth an estimated $4.9 million in stock. Paul Tudor Jones’ fund, Tudor Investment Corp, also said goodbye to its stock, about $0.6 million worth.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Cathay General Bancorp (NASDAQ:CATY) but similarly valued. We will take a look at EverBank Financial Corp (NYSE:EVER), BGC Partners, Inc. (NASDAQ:BGCP), Eastgroup Properties Inc (NYSE:EGP), and LendingClub Corp (NYSE:LC). This group of stocks’ market caps are similar to CATY’s market cap.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $214 million. That figure was $39 million in CATY’s case. LendingClub Corp (NYSE:LC) is the most popular stock in this table. On the other hand Eastgroup Properties Inc (NYSE:EGP) is the least popular one with only 8 bullish hedge fund positions. Cathay General Bancorp (NASDAQ:CATY) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard LC might be a better candidate to consider taking a long position in.

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Disclosure: None