HSBC (NYSE:HSBC) Reaches New 12-Month High – Here’s Why

HSBC Holdings plc (NYSE:HSBC)’s share price hit a new 52-week high on Wednesday . The company traded as high as $72.82 and last traded at $72.5240, with a volume of 1949231 shares traded. The stock had previously closed at $72.04.

Wall Street Analyst Weigh In

Several equities analysts have commented on HSBC shares. BNP Paribas Exane upgraded HSBC from an “underperform” rating to an “outperform” rating in a research report on Friday, September 5th. Jefferies Financial Group restated a “hold” rating on shares of HSBC in a research note on Friday, October 10th. Citigroup reiterated a “buy” rating on shares of HSBC in a research note on Tuesday, October 21st. Weiss Ratings restated a “hold (c)” rating on shares of HSBC in a research report on Wednesday, October 8th. Finally, Zacks Research upgraded HSBC from a “hold” rating to a “strong-buy” rating in a research report on Monday, November 3rd. Two investment analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, HSBC currently has an average rating of “Moderate Buy” and an average price target of $63.00.

HSBC Price Performance

The firm’s fifty day moving average is $68.86 and its 200 day moving average is $63.82. The company has a market capitalization of $253.43 billion, a P/E ratio of 15.46, a P/E/G ratio of 1.30 and a beta of 0.64. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.93 and a current ratio of 0.92.

HSBC (NYSE:HSBC) last announced its earnings results on Tuesday, October 28th. The financial services provider reported $1.80 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.65 by $0.15. HSBC had a return on equity of 12.78% and a net margin of 12.85%.The business had revenue of $17.90 billion for the quarter, compared to analysts’ expectations of $16.78 billion. As a group, analysts predict that HSBC Holdings plc will post 6.66 earnings per share for the current fiscal year.

HSBC Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 18th. Shareholders of record on Friday, November 7th will be paid a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date is Friday, November 7th. This is an increase from HSBC’s previous quarterly dividend of $0.50. HSBC’s dividend payout ratio (DPR) is 41.68%.

Institutional Investors Weigh In On HSBC

Several hedge funds have recently modified their holdings of the company. Fisher Asset Management LLC increased its stake in shares of HSBC by 9.2% during the second quarter. Fisher Asset Management LLC now owns 17,043,371 shares of the financial services provider’s stock worth $1,036,067,000 after buying an additional 1,430,797 shares during the period. Contrarian Capital Management L.L.C. lifted its holdings in HSBC by 425.4% during the 1st quarter. Contrarian Capital Management L.L.C. now owns 1,265,656 shares of the financial services provider’s stock worth $72,687,000 after buying an additional 1,024,780 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. boosted its position in shares of HSBC by 729.6% during the 1st quarter. Connor Clark & Lunn Investment Management Ltd. now owns 387,953 shares of the financial services provider’s stock worth $22,280,000 after acquiring an additional 341,187 shares in the last quarter. JPMorgan Chase & Co. raised its position in shares of HSBC by 160.9% during the 2nd quarter. JPMorgan Chase & Co. now owns 502,200 shares of the financial services provider’s stock worth $30,529,000 after acquiring an additional 309,738 shares in the last quarter. Finally, 1832 Asset Management L.P. acquired a new stake in shares of HSBC during the first quarter worth about $17,430,000. 1.48% of the stock is owned by hedge funds and other institutional investors.

About HSBC

HSBC Holdings plc provides banking and financial services worldwide. The company operates through Wealth and Personal Banking, Commercial Banking, and Global Banking and Markets segments. The Wealth and Personal Banking segment offers retail banking and wealth products, including current and savings accounts, mortgages and personal loans, credit and debit cards, and local and international payment services; and wealth management services comprising insurance and investment products, global asset management services, investment management, and private wealth solutions.