HSBC Holdings plc (NYSE:HSBC) Receives Average Rating of “Hold” from Analysts

Shares of HSBC Holdings plc (NYSE:HSBC) have earned an average rating of “Hold” from the twelve ratings firms that are presently covering the stock, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell rating, nine have assigned a hold rating and two have issued a buy rating on the company.

Several equities analysts recently issued reports on the company. Weiss Ratings restated a “hold (c)” rating on shares of HSBC in a research note on Monday, August 3rd. BNP Paribas Exane lowered HSBC from a “hold” rating to a “strong sell” rating in a report on Tuesday, August 4th. Royal Bank Of Canada restated a “sector perform” rating on shares of HSBC in a research note on Monday, August 17th. Citigroup downgraded shares of HSBC from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, August 4th. Finally, Deutsche Bank Aktiengesellschaft restated a “hold” rating on shares of HSBC in a research note on Tuesday, June 23rd.

Institutional Investors Weigh In On HSBC

Several large investors have recently modified their holdings of HSBC. Northwestern Mutual Wealth Management Co. raised its position in HSBC by 1,272.2% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 909,464 shares of the financial services provider’s stock valued at $71,548,000 after purchasing an additional 843,186 shares during the last quarter. Quantinno Capital Management LP increased its stake in shares of HSBC by 20.9% in the first quarter. Quantinno Capital Management LP now owns 525,775 shares of the financial services provider’s stock valued at $43,371,000 after buying an additional 90,711 shares in the last quarter. Bleakley Financial Group LLC bought a new position in shares of HSBC in the fourth quarter valued at about $988,000. May Hill Capital LLC lifted its position in HSBC by 105.9% during the 4th quarter. May Hill Capital LLC now owns 23,424 shares of the financial services provider’s stock worth $1,843,000 after buying an additional 12,047 shares in the last quarter. Finally, Prospera Financial Services Inc grew its holdings in HSBC by 41.1% during the 4th quarter. Prospera Financial Services Inc now owns 51,238 shares of the financial services provider’s stock worth $4,032,000 after acquiring an additional 14,933 shares during the last quarter. 1.48% of the stock is currently owned by institutional investors.

HSBC Trading Up 2.1%

Shares of HSBC stock opened at $102.93 on Friday. HSBC has a 1 year low of $64.64 and a 1 year high of $107.92. The firm’s fifty day simple moving average is $103.36 and its 200 day simple moving average is $94.39. The firm has a market capitalization of $353.45 billion, a P/E ratio of 14.60, a price-to-earnings-growth ratio of 0.96 and a beta of 0.57. 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 posted its quarterly earnings results on Tuesday, August 4th. The financial services provider reported $2.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.24 by $0.01. The company had revenue of $19.04 billion for the quarter, compared to analyst estimates of $18.66 billion. HSBC had a net margin of 18.19% and a return on equity of 13.80%. As a group, sell-side analysts predict that HSBC will post 8.56 EPS for the current year.

HSBC Announces Dividend

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

Key Headlines Impacting HSBC

Here are the key news stories impacting HSBC this week:

• Positive Sentiment: Share buyback supports per-share value. HSBC continued its global repurchase program in the United Kingdom and Hong Kong, buying back and cancelling more than 35 million shares. A lower share count can support earnings per share and signals management’s confidence in the bank’s valuation. HSBC Advances Global Share Buy-Back, Cancelling Over 35 Million Shares
• Positive Sentiment: India’s GIFT City business is gaining scale. HSBC and ICICI Bank reportedly led foreign-exchange lending to India’s diaspora, with approximately $19.3 billion disbursed under an RBI-backed GIFT City scheme. The activity highlights potential growth in cross-border banking, deposits and lending. HSBC, ICICI Bank emerge as biggest FX lenders to India’s diaspora in GIFT City
• Positive Sentiment: Digital initiatives and wealth products could expand fee revenue. HSBC is using artificial intelligence to accelerate customer and employee services, while HSBC Asset Management launched a sterling short-duration bond fund and HSBC Singapore expanded wealthy clients’ access to private markets. These initiatives may improve efficiency and diversify non-interest income. HSBC uses AI to speed services for customers and employees
• Neutral Sentiment: HSBC research coverage of Indian defense stocks could generate investment-banking or market-research visibility, but the recommendations concern other companies and do not directly change HSBC’s earnings outlook. HSBC initiates coverage on seven defence stocks
• Neutral Sentiment: Fraud warnings and a temporary oil-market deficit risk are notable operating and macro headlines, but no material financial impact on HSBC was reported. HSBC Warns Customers About Fraud Scam
• Negative Sentiment: Reducing Hong Kong bankers’ education benefits may lower expenses, but could hurt employee morale and reflects continued cost discipline that may create retention concerns. HSBC cuts back school perk for some Hong Kong bankers

HSBC Company Profile

HSBC Holdings plc is a global banking and financial services organization headquartered in London. Through its subsidiaries and network, the company provides services to personal, commercial and institutional customers, with a particular focus on connecting businesses and investors across international markets.

HSBC’s principal activities include retail and wealth banking, commercial banking, global banking and markets, and private banking. Its products and services include current and savings accounts, mortgages, credit and lending, wealth management, investment services, foreign exchange, trade finance, cash management, and capital-markets services.

The company traces its origins to The Hongkong and Shanghai Banking Corporation, which was established in 1865 to finance trade between Asia and Europe.