HSBC (NYSE:HSBC) Reaches New 1-Year High – Still a Buy?

HSBC Holdings plc (NYSE:HSBC)’s stock 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 traded. The stock had previously closed at $103.40.

HSBC News Summary

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

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on HSBC shares. Citigroup reiterated a “buy” rating on shares of HSBC in a research report on Thursday, July 16th. Royal Bank Of Canada reissued a “sector perform” rating on shares of HSBC in a report on Thursday, May 14th. Erste Group Bank cut shares of HSBC from a “buy” rating to a “hold” rating in a research report on Wednesday, July 15th. Weiss Ratings downgraded HSBC from a “hold (c+)” rating to a “hold (c)” rating in a report on Wednesday, May 6th. Finally, Zacks Research cut HSBC from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, May 5th. Four investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold”.

HSBC Stock Up 0.5%

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

HSBC (NYSE:HSBC) last issued its quarterly earnings data on Tuesday, March 31st. The financial services provider reported $0.44 EPS for the quarter. HSBC had a return on equity of 13.35% and a net margin of 16.06%.The business had revenue of $19.12 billion for the quarter. Sell-side analysts predict that HSBC Holdings plc will post 8.66 earnings per share for the current year.

HSBC Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Friday, May 15th were given 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 currently 32.46%.

Insider Buying and Selling at HSBC

In other news, insider Daniel Scott Palomaki sold 23,123 shares of HSBC stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $18.11, for a total transaction of $418,757.53. Following the transaction, the insider owned 4,973 shares in the company, valued at $90,061.03. The trade was a 82.30% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.01% of the stock is owned by company insiders.

Institutional Trading of HSBC

Several hedge funds have recently bought and sold shares of HSBC. Transamerica Financial Advisors LLC lifted its stake in HSBC by 287.1% in the fourth quarter. Transamerica Financial Advisors LLC now owns 329 shares of the financial services provider’s stock valued at $26,000 after buying an additional 244 shares in the last quarter. Measured Wealth Private Client Group LLC bought a new stake in shares of HSBC during the third quarter worth $26,000. Ballast Advisors LLC acquired a new stake in shares of HSBC during the first quarter worth $36,000. Binnacle Investments Inc lifted its position in HSBC by 80.5% in the 3rd quarter. Binnacle Investments Inc now owns 444 shares of the financial services provider’s stock valued at $32,000 after acquiring an additional 198 shares in the last quarter. Finally, Western Wealth Management LLC bought a new stake in HSBC in the 1st quarter valued at $37,000. 1.48% of the stock is currently owned by institutional investors and hedge funds.

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.