HSBC (NYSE:HSBC) Lowered to “Hold” Rating by Erste Group Bank

Erste Group Bank cut shares of HSBC (NYSE:HSBC) from a buy rating to a hold rating in a report released on Wednesday, MarketBeat.com reports.

Other research analysts also recently issued reports about the company. Weiss Ratings downgraded HSBC from a “hold (c+)” rating to a “hold (c)” rating in a report on Wednesday, May 6th. Royal Bank Of Canada reaffirmed a “sector perform” rating on shares of HSBC in a research report on Thursday, May 14th. Zacks Research cut shares of HSBC from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, May 5th. BNP Paribas Exane lowered shares of HSBC from an “outperform” rating to a “neutral” rating in a research report on Tuesday, April 14th. Finally, Deutsche Bank Aktiengesellschaft restated a “hold” rating on shares of HSBC in a report on Tuesday, June 23rd. Four investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold”.

HSBC Price Performance

Shares of NYSE HSBC opened at $100.47 on Wednesday. The firm has a market cap of $345.29 billion, a PE ratio of 16.47, a PEG ratio of 0.88 and a beta of 0.57. The company has a current ratio of 0.92, a quick ratio of 0.92 and a debt-to-equity ratio of 0.52. HSBC has a 1-year low of $60.61 and a 1-year high of $100.80. The company has a fifty day moving average price of $93.64 and a 200 day moving average price of $88.41.

HSBC (NYSE:HSBC) last released its quarterly earnings results on Tuesday, March 31st. The financial services provider reported $0.44 earnings per share (EPS) for the quarter. The firm had revenue of $19.12 billion for the quarter. HSBC had a return on equity of 13.35% and a net margin of 16.06%. Research analysts predict that HSBC will post 8.69 earnings per share for the current fiscal year.

HSBC Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Friday, May 15th were given a $0.50 dividend. The ex-dividend date of this dividend was Friday, May 15th. This represents a $2.00 annualized dividend and a dividend yield of 2.0%. HSBC’s dividend payout ratio is presently 32.46%.

Insider Buying and Selling at HSBC

In related news, insider Daniel Scott Palomaki sold 23,123 shares of HSBC stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $18.11, for a total transaction of $418,757.53. Following the completion of the sale, the insider directly owned 4,973 shares of the company’s stock, valued at approximately $90,061.03. This trade represents a 82.30% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Company insiders own 0.01% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the company. Transamerica Financial Advisors LLC lifted its holdings in shares of HSBC by 287.1% during 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 in the last quarter. Measured Wealth Private Client Group LLC bought a new position in HSBC during the third quarter worth about $26,000. Binnacle Investments Inc increased its position in HSBC by 80.5% during the third quarter. Binnacle Investments Inc now owns 444 shares of the financial services provider’s stock worth $32,000 after acquiring an additional 198 shares during the period. Ballast Advisors LLC acquired a new stake in HSBC in the 1st quarter worth about $36,000. Finally, Western Wealth Management LLC bought a new stake in HSBC in the 1st quarter valued at about $37,000. Institutional investors own 1.48% of the company’s stock.

Key Stories Impacting HSBC

Here are the key news stories impacting HSBC this week:

• Positive Sentiment: HSBC was selected to manage the blockchain platform for the UK’s first planned “digital” sovereign bond, a high-profile mandate that could support fee income and reinforce HSBC’s leadership in capital-markets technology. UK to issue first ‘digital’ bond by early 2027, finance minister says
• Positive Sentiment: HSBC issued upbeat research on several stocks, including a bullish call on Adani Ports with a raised target implying significant upside, which may be viewed as evidence of strong franchise credibility in emerging-markets coverage. HSBC Raises Adani Ports Target To Record Rs 2,100, Sees 21% Upside
• Positive Sentiment: HSBC also highlighted upside potential in Pidilite, calling the company more than just an adhesives business and suggesting room for further gains in another market. Fevicol maker Pidilite could rally nearly 20%, says HSBC; calls it more than just an adhesives business
• Negative Sentiment: Erste Group Bank AG downgraded HSBC from “buy” to “hold,” signaling less near-term upside after the recent run-up toward its 52-week high. Finviz
• Negative Sentiment: HSBC faced regulatory scrutiny in Bangladesh, where the central bank sought an explanation over layoffs of 257 employees, adding a potential reputational and operational overhang. Cenbank seeks explanation from HSBC over layoffs of 257

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.