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

Shares of HSBC Holdings plc (NYSE:HSBC) have received an average recommendation of “Hold” from the twelve brokerages that are currently covering the company, Marketbeat.com reports. Eight equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company.

A number of research firms recently weighed in on HSBC. BNP Paribas Exane cut shares of HSBC from an “outperform” rating to a “neutral” rating in a research note on Tuesday, April 14th. Citigroup reaffirmed a “buy” rating on shares of HSBC in a report on Thursday, July 16th. Royal Bank Of Canada reiterated a “sector perform” rating on shares of HSBC in a research note on Thursday, May 14th. Deutsche Bank Aktiengesellschaft reissued a “hold” rating on shares of HSBC in a report on Tuesday, June 23rd. Finally, Erste Group Bank lowered HSBC from a “buy” rating to a “hold” rating in a research note on Wednesday, July 15th.

Key Stories Impacting HSBC

Here are the key news stories impacting HSBC this week:

• Positive Sentiment: HSBC agreed to sell HSBC Life Singapore to Allianz for about $2.1 billion, boosting capital and creating a sizable pre-tax gain while preserving a long-term insurance distribution partnership. WSJ article
• Positive Sentiment: The sale values HSBC Life Singapore at 5.8x net asset value, reinforcing that HSBC is monetizing assets at an attractive valuation. The Edge Singapore article
• Positive Sentiment: HSBC’s latest earnings backdrop remains solid, with the bank recently reporting $0.44 EPS and revenue of $19.13 billion, supporting investor confidence in its profitability.
• Neutral Sentiment: HSBC’s own economic research flagged slowing India activity amid Middle East tensions, highlighting macro risks but not a direct hit to current bank results. Financial Post article
• Neutral Sentiment: HSBC also warned of a possible commodity “super-squeeze” as Iran-related conflict widens, which underscores elevated geopolitical risk and potential market volatility. 247WallSt article

HSBC Stock Up 1.6%

HSBC opened at $103.35 on Thursday. The company has a market capitalization of $355.18 billion, a P/E ratio of 16.94, a P/E/G ratio of 0.92 and a beta of 0.57. The company has a debt-to-equity ratio of 0.52, a current ratio of 0.92 and a quick ratio of 0.92. The firm’s fifty day moving average price is $95.24 and its two-hundred day moving average price is $89.42. HSBC has a fifty-two week low of $60.61 and a fifty-two week high of $103.94.

HSBC (NYSE:HSBC) last announced its quarterly earnings data on Tuesday, March 31st. The financial services provider reported $0.44 earnings per share (EPS) for the quarter. HSBC had a net margin of 16.06% and a return on equity of 13.35%. The company had revenue of $19.12 billion during the quarter. On average, analysts anticipate that HSBC will post 8.66 EPS for the current year.

HSBC Cuts Dividend

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

Insider Activity at HSBC

In other news, insider Daniel Scott Palomaki sold 23,123 shares of the company’s stock in a transaction dated Thursday, May 7th. The shares were 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 of the company’s stock, valued at approximately $90,061.03. This represents a 82.30% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 0.01% of the company’s stock.

Hedge Funds Weigh In On HSBC

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Transamerica Financial Advisors LLC increased 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 acquired a new position in shares of HSBC in the 3rd quarter worth approximately $26,000. Binnacle Investments Inc boosted its holdings in shares of HSBC by 80.5% in the 3rd quarter. Binnacle Investments Inc now owns 444 shares of the financial services provider’s stock worth $32,000 after acquiring an additional 198 shares in the last quarter. Ballast Advisors LLC bought a new stake in HSBC during the 1st quarter worth approximately $36,000. Finally, Western Wealth Management LLC acquired a new stake in HSBC during the 1st quarter valued at $37,000. 1.48% of the stock is currently owned by institutional investors and hedge funds.

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.