SAN Trading Below Director's Recent Buy Price Monday, December 10, 12:00 PM ET, by Market News Video Staff There's an old saying on Wall Street about insider buying: there are many possible reasons ...
There's an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy. Back on June 9, Cathay General Bancorp's Director, Nelson Chung, invested $149,900.00 into 10,000 shares of CATY, for a cost per share of $14.99. Bargain hunters tend to pay particular attention to insider buys like this one, because presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money.
In trading on Monday, bargain hunters could buy shares of Cathay General Bancorp (NASDAQ:CATY) and achieve a cost basis 18.3% cheaper than Chung, with shares changing hands as low as $12.25 per share. It should be noted that Chung has collected $0.01/share in dividends since the time of their purchase, so they are currently down 18.2% on their purchase from a total return basis. Cathay General Bancorp shares are currently trading off about 4.2% on the day. The chart below shows the one year performance of CATY shares, versus its 200 day moving average:
Looking at the chart above, CATY's low point in its 52 week range is $10.01 per share, with $18.98 as the 52 week high point — that compares with a last trade of $12.36. By comparison, below is a table showing the prices at which insider buying was recorded over the last six months:
CATY operates in the Banking & Savings sector, among companies like Banco de Chile (NYSE:BCH) which is off about 3.2% today, and Banco Santander Chile (NYSE:SAN) trading lower by about 4%. Below is a three month price history chart comparing the stock performance of CATY, versus BCH and SAN.
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