HSBC Holdings plc (NYSE:HSBC) Given Average Recommendation of “Hold” by Analysts

Shares of HSBC Holdings plc (NYSE:HSBC) have received a consensus rating of “Hold” from the twelve analysts that are presently covering the stock, Marketbeat reports. One research analyst has rated the stock with a sell recommendation, eight have issued a hold recommendation and three have issued a buy recommendation on the company.

Several research firms recently weighed in on HSBC. BNP Paribas Exane downgraded HSBC from a “hold” rating to a “strong sell” rating in a research report on Tuesday, August 4th. Zacks Research downgraded HSBC from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, May 5th. Citigroup cut HSBC from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, August 4th. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating on shares of HSBC in a research note on Tuesday, June 23rd. Finally, Weiss Ratings restated a “hold (c)” rating on shares of HSBC in a research note on Monday, August 3rd.

Key Stories Impacting HSBC

Here are the key news stories impacting HSBC this week:

• Positive Sentiment: Share buyback continues: HSBC repurchased additional shares under its global buyback program, with more than 16 million shares previously cancelled. Ongoing buybacks reduce the share count and can support earnings per share and valuation. HSBC Advances Global Share Buy-Back With Fresh Repurchases
• Positive Sentiment: Digital payments and treasury opportunity: HSBC and Standard Chartered are reportedly using tokenized deposits on a SWIFT-linked ledger, potentially improving cross-border settlement and strengthening HSBC’s position in institutional digital banking. XRP’s Cross-Border Battle Heats Up
• Positive Sentiment: Adoption of forex AI: HSBC has joined Citi and Standard Chartered in adopting Ant International’s upgraded artificial-intelligence tool for foreign-exchange and liquidity-risk management. The move could improve operational efficiency and support HSBC’s technology strategy. Citi, HSBC, StanChart Adopt Ant International’s Forex AI Tool
• Neutral Sentiment: Macro views: HSBC economists said weaker economic data could benefit Treasuries, while warning that Indonesia may still need rate hikes if El Niño raises inflation. These views may affect HSBC’s trading and markets outlook but do not directly change company earnings guidance. HSBC’s Kettner Sees Negative Economic Surprises Boosting Treasuries
• Neutral Sentiment: Business activity remains subdued: The latest HSBC PMI indicated that private-sector growth improved in August but remained weak, highlighting a mixed economic backdrop for corporate lending and transaction volumes. HSBC PMI: Private Sector Growth Rises in August but Remains Subdued
• Negative Sentiment: Senior-bankers’ departures and restructuring: HSBC reportedly spent about $68 million on its biggest senior-banker reduction since the financial crisis, and leveraged-finance banker Vikram Lamba has departed. The cuts may improve long-term costs but raise concerns about revenue pressure, morale and the loss of experienced staff. HSBC Spends $68 Million on Senior Banker Cuts
• Negative Sentiment: Minor dilution from employee awards: HSBC granted conditional awards over 286,184 ordinary shares. The amount is small relative to the company’s share count, but could modestly dilute existing shareholders. HSBC Grants New Conditional Share Awards

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Transamerica Financial Advisors LLC boosted its holdings in HSBC by 287.1% in the 4th quarter. Transamerica Financial Advisors LLC now owns 329 shares of the financial services provider’s stock worth $26,000 after buying an additional 244 shares during the period. Measured Wealth Private Client Group LLC bought a new stake in HSBC during the third quarter valued at about $26,000. Binnacle Investments Inc lifted its position in shares of HSBC by 80.5% in the third quarter. Binnacle Investments Inc now owns 444 shares of the financial services provider’s stock valued at $32,000 after acquiring an additional 198 shares in the last quarter. Ballast Advisors LLC bought a new position in shares of HSBC in the first quarter worth about $36,000. Finally, Western Wealth Management LLC purchased a new stake in shares of HSBC during the first quarter worth about $37,000. Hedge funds and other institutional investors own 1.48% of the company’s stock.

HSBC Stock Down 0.0%

HSBC opened at $104.10 on Monday. The firm’s 50 day simple moving average is $100.09 and its two-hundred day simple moving average is $92.33. The company has a market capitalization of $357.76 billion, a PE ratio of 14.77, a PEG ratio of 0.99 and a beta of 0.57. HSBC has a 1-year low of $63.54 and a 1-year high of $107.92. The company has a current ratio of 0.85, a quick ratio of 0.92 and a debt-to-equity ratio of 0.67.

HSBC (NYSE:HSBC) last issued its quarterly earnings data on Tuesday, August 4th. The financial services provider reported $2.25 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.24 by $0.01. The firm had revenue of $19.04 billion during the quarter, compared to the consensus estimate of $18.66 billion. HSBC had a net margin of 18.19% and a return on equity of 13.80%. As a group, equities analysts forecast that HSBC will post 8.57 EPS for the current year.

HSBC Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, August 14th will be paid a $0.50 dividend. The ex-dividend date of this dividend is Friday, August 14th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.9%. HSBC’s dividend payout ratio is 28.09%.

HSBC Company Profile

HSBC Holdings plc (NYSE: HSBC) is a multinational banking and financial services organization headquartered in London. It traces its origins to the Hongkong and Shanghai Banking Corporation, founded in 1865 to facilitate trade between Europe and Asia, and has since grown into one of the world’s largest banking groups. The company is publicly listed in multiple markets, including the London Stock Exchange, the Hong Kong Stock Exchange and as an American depositary receipt on the New York Stock Exchange.

HSBC operates a universal banking model, serving retail, commercial, corporate and institutional clients.