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

HSBC Holdings plc (NYSE:HSBC) has received an average recommendation of “Hold” from the eleven ratings firms that are presently covering the company, MarketBeat reports. Six investment analysts have rated the stock with a hold rating and five have given a buy rating to the company.

A number of research firms have weighed in on HSBC. Royal Bank Of Canada restated a “sector perform” rating on shares of HSBC in a research note on Thursday, May 14th. The Goldman Sachs Group began coverage on shares of HSBC in a research note on Thursday, March 26th. They set a “buy” rating for the company. BNP Paribas Exane lowered shares of HSBC from an “outperform” rating to a “neutral” rating in a research note on Tuesday, April 14th. Zacks Research lowered shares of HSBC from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, May 5th. Finally, Weiss Ratings lowered shares of HSBC from a “hold (c+)” rating to a “hold (c)” rating in a research note on Wednesday, May 6th.

HSBC News Roundup

Here are the key news stories impacting HSBC this week:

• Negative Sentiment: Reports that Hong Kong banks may face stricter scrutiny on mainland Chinese clients sparked concern over reduced account growth, cross-border deposits, and fee revenue for HSBC. HSBC, AIA Slump After Report of Hong Kong Bank Account Curbs
• Negative Sentiment: HSBC was also mentioned in connection with a whistleblower allegation against HSBC Bank USA involving possible Sarbanes-Oxley violations, adding another legal and compliance overhang. Whistleblower Accuses HSBC Bank USA of Sarbanes-Oxley Violations
• Neutral Sentiment: Citi said the recent decline in HSBC and Standard Chartered may be excessive, suggesting the market reaction could be overdone if the account-opening concerns prove limited. HSBC and StanChart sell-off overdone, says Citi
• Neutral Sentiment: HSBC also appeared in routine capital-markets notices from its Continental Europe unit, which are not likely to materially affect the stock. HSBC Continental Europe: Post Stabilisation Notice
• Neutral Sentiment: HSBC Research also published a macro view on India’s potential need for dollar inflows to support the rupee, which is informative but not a direct earnings driver for the bank’s shares. India may need up to $70 bn in inflows as policymakers weigh rupee-support package: HSBC

HSBC Stock Up 0.1%

NYSE:HSBC opened at $90.85 on Wednesday. The firm has a market cap of $312.22 billion, a P/E ratio of 14.89, a P/E/G ratio of 0.81 and a beta of 0.56. The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.92 and a current ratio of 0.92. HSBC has a fifty-two week low of $58.14 and a fifty-two week high of $95.61. The firm has a 50-day simple moving average of $89.60 and a two-hundred day simple moving average of $84.06.

HSBC (NYSE:HSBC) last released its quarterly earnings data on Tuesday, March 31st. The financial services provider reported $0.44 earnings per share for the quarter. The business had revenue of $19.13 billion during the quarter. HSBC had a net margin of 16.06% and a return on equity of 13.35%. Analysts predict that HSBC will post 8.55 earnings per share for the current fiscal year.

HSBC Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Friday, May 15th will be paid a $0.50 dividend. The ex-dividend date is Friday, May 15th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 2.2%. HSBC’s payout ratio is currently 32.46%.

Insider Activity at HSBC

In other news, insider Daniel Scott Palomaki sold 23,123 shares of HSBC stock in a transaction that occurred on Thursday, May 7th. The shares were sold at an average price of $18.11, for a total value of $418,757.53. Following the completion of the sale, the insider directly owned 4,973 shares in the company, valued at $90,061.03. The trade was a 82.30% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 0.01% of the stock is owned by corporate insiders.

Institutional Trading of HSBC

Large investors have recently made changes to their positions in the stock. Transamerica Financial Advisors LLC boosted its holdings in shares of HSBC by 287.1% in the fourth 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 last quarter. Measured Wealth Private Client Group LLC purchased a new position in shares of HSBC in the third quarter worth approximately $26,000. Binnacle Investments Inc boosted its holdings 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 worth $32,000 after buying an additional 198 shares during the last quarter. Western Wealth Management LLC purchased a new position in shares of HSBC in the first quarter worth approximately $37,000. Finally, Whipplewood Advisors LLC purchased a new position in shares of HSBC in the first quarter worth approximately $41,000. 1.48% of the stock is currently owned by institutional investors.

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.