HSBC (NYSE:HSBC) Hits New 52-Week High – Should You Buy?

HSBC Holdings plc (NYSE:HSBC) shares reached a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $96.90 and last traded at $96.4290, with a volume of 1104746 shares changing hands. The stock had previously closed at $94.97.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on HSBC. Zacks Research downgraded HSBC from a “strong-buy” rating to a “hold” rating in a report on Tuesday, May 5th. Weiss Ratings lowered shares of HSBC from a “hold (c+)” rating to a “hold (c)” rating in a research report on Wednesday, May 6th. Royal Bank Of Canada reissued a “sector perform” rating on shares of HSBC in a report on Thursday, May 14th. The Goldman Sachs Group started coverage on shares of HSBC in a report on Thursday, March 26th. They set a “buy” rating on the stock. Finally, BNP Paribas Exane downgraded shares of HSBC from an “outperform” rating to a “neutral” rating in a research report on Tuesday, April 14th. Five equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, HSBC presently has an average rating of “Hold”.

HSBC Trading Up 1.5%

The firm’s fifty day simple moving average is $91.50 and its 200 day simple moving average is $85.83. The stock has a market capitalization of $331.40 billion, a P/E ratio of 15.81, a price-to-earnings-growth ratio of 0.84 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 (NYSE:HSBC) last issued its quarterly earnings results 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 during the quarter. HSBC had a net margin of 16.06% and a return on equity of 13.35%. As a group, equities research analysts forecast that HSBC Holdings plc will post 8.6 EPS for the current fiscal year.

HSBC Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Friday, May 15th will be issued a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date of this dividend is Friday, May 15th. HSBC’s dividend payout ratio (DPR) is currently 32.46%.

Insider Activity

In other news, insider Daniel Scott Palomaki sold 23,123 shares of HSBC stock in a transaction 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 transaction, the insider owned 4,973 shares in the company, valued at approximately $90,061.03. This trade represents a 82.30% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 0.01% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of HSBC. Sivia Capital Partners LLC lifted its holdings in shares of HSBC by 19.0% in the second 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. increased its position in HSBC by 22.5% during the 2nd quarter. Invesco Ltd. now owns 7,052 shares of the financial services provider’s stock worth $429,000 after purchasing an additional 1,295 shares in the last quarter. Jump Financial LLC bought a new position in HSBC in the 2nd quarter valued at approximately $221,000. Cerity Partners LLC boosted its holdings in shares of HSBC by 3.1% during the 2nd quarter. Cerity Partners LLC now owns 98,708 shares of the financial services provider’s stock valued at $6,000,000 after acquiring an additional 2,940 shares in the last quarter. Finally, Qube Research & Technologies Ltd boosted its holdings in shares of HSBC by 36.7% during the 2nd quarter. Qube Research & Technologies Ltd now owns 365,570 shares of the financial services provider’s stock valued at $22,223,000 after acquiring an additional 98,048 shares in the last quarter. Institutional investors own 1.48% of the company’s stock.

About HSBC

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.