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 during trading on Tuesday . The company traded as high as $104.33 and last traded at $103.9560, with a volume of 979712 shares changing hands. The stock had previously closed at $103.40.

More HSBC News

Here are the key news stories impacting HSBC this week:

• Positive Sentiment: HSBC plans to hire more than 100 artificial-intelligence specialists and 100 wealth relationship managers in Singapore. The investment could accelerate automation, improve productivity and expand wealth-management revenue, a higher-margin business that supports the bank’s Asian growth strategy. Reuters article on HSBC hiring AI specialists and wealth managers
• Positive Sentiment: The bank is also tapping debt-capital-markets leaders across the United States and Middle East. The hires indicate an effort to capture more corporate-finance and bond-issuance activity, potentially boosting fee income. Bloomberg article on HSBC debt-capital-markets hires
• Neutral Sentiment: Blackstone’s credit arm is reportedly nearing a deal to acquire HSBC’s Australian loan book, valued at more than $30 billion. A sale could simplify HSBC’s portfolio and release capital for strategic priorities, but the financial terms, timing and effect on earnings have not been disclosed. Yahoo Finance report on Blackstone and HSBC Australian loan book
• Neutral Sentiment: HSBC is reportedly raising mortgage rates in the United Kingdom for the second time in a week. Higher rates may support lending margins, but could reduce mortgage demand and increase pressure on customers and competitors. Report on HSBC increasing mortgage rates

Wall Street Analysts Forecast Growth

HSBC has been the subject of a number of research reports. Royal Bank Of Canada reiterated a “sector perform” rating on shares of HSBC in a report on Thursday, May 14th. BNP Paribas Exane cut HSBC from an “outperform” rating to a “neutral” rating in a research note on Tuesday, April 14th. Weiss Ratings cut shares of HSBC from a “hold (c+)” rating to a “hold (c)” rating in a research note on Wednesday, May 6th. Zacks Research lowered shares of HSBC from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, May 5th. Finally, Erste Group Bank cut shares of HSBC from a “buy” rating to a “hold” rating in a report on Wednesday, July 15th. Four analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Hold”.

HSBC Trading Up 0.5%

The stock has a market cap of $357.27 billion, a price-to-earnings ratio of 17.04, a PEG ratio of 0.92 and a beta of 0.57. The company has a quick ratio of 0.92, a current ratio of 0.92 and a debt-to-equity ratio of 0.52. The business’s 50 day simple moving average is $95.51 and its 200 day simple moving average is $89.63.

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 company had revenue of $19.12 billion for the quarter. HSBC had a net margin of 16.06% and a return on equity of 13.35%. On average, research analysts expect that HSBC Holdings plc will post 8.66 EPS for the current fiscal year.

HSBC Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Friday, May 15th were issued a dividend of $0.50 per share. The ex-dividend date was Friday, May 15th. This represents a $2.00 dividend on an annualized basis and a yield of 1.9%. HSBC’s dividend payout ratio (DPR) is presently 32.46%.

Insider Transactions at HSBC

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

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Sivia Capital Partners LLC increased its holdings in shares of HSBC by 19.0% during the 2nd quarter. Sivia Capital Partners LLC now owns 11,896 shares of the financial services provider’s stock worth $723,000 after acquiring an additional 1,899 shares during the last quarter. Invesco Ltd. lifted its holdings in HSBC by 22.5% during the 2nd quarter. Invesco Ltd. now owns 7,052 shares of the financial services provider’s stock valued at $429,000 after purchasing an additional 1,295 shares during the last quarter. Jump Financial LLC bought a new position in HSBC during the second quarter worth $221,000. Cerity Partners LLC increased its holdings in shares of HSBC by 3.1% in the second quarter. Cerity Partners LLC now owns 98,708 shares of the financial services provider’s stock valued at $6,000,000 after purchasing an additional 2,940 shares during the last quarter. Finally, Qube Research & Technologies Ltd increased its holdings in shares of HSBC by 36.7% in the second quarter. Qube Research & Technologies Ltd now owns 365,570 shares of the financial services provider’s stock valued at $22,223,000 after purchasing an additional 98,048 shares during the last quarter. 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.