HSBC (NYSE:HSBC) Hits New 12-Month High – Here’s Why

HSBC Holdings plc (NYSE:HSBC)’s stock price hit a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $95.22 and last traded at $94.7470, with a volume of 249132 shares changing hands. The stock had previously closed at $93.74.

Analyst Upgrades and Downgrades

A number of research firms recently commented on HSBC. Weiss Ratings lowered HSBC from a “hold (c+)” rating to a “hold (c)” rating in a research report on Wednesday, May 6th. BNP Paribas Exane downgraded shares of HSBC from an “outperform” rating to a “neutral” rating in a report on Tuesday, April 14th. Royal Bank Of Canada restated a “sector perform” rating on shares of HSBC in a report on Thursday, May 14th. Zacks Research downgraded shares of HSBC from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, May 5th. Finally, The Goldman Sachs Group initiated coverage on shares of HSBC in a research note on Thursday, March 26th. They issued a “buy” rating for the company. Five analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat, HSBC presently has a consensus rating of “Hold” and a consensus target price of $63.00.

HSBC Price Performance

The firm has a market cap of $324.66 billion, a PE ratio of 15.48, a P/E/G ratio of 0.92 and a beta of 0.56. 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 business’s fifty day moving average is $87.42 and its 200-day moving average is $82.87.

HSBC (NYSE:HSBC) last released its earnings results on Tuesday, March 31st. The financial services provider reported $0.44 earnings per share (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 $19.13 billion during the quarter. On average, research analysts predict that HSBC Holdings plc will post 8.54 earnings per share for the current fiscal year.

HSBC Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Friday, May 15th will be given a dividend of $0.50 per share. The ex-dividend date is Friday, May 15th. This represents a $2.00 annualized dividend and a dividend yield of 2.1%. HSBC’s dividend payout ratio is currently 32.46%.

Insider Activity at HSBC

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 completion of the transaction, the insider directly owned 4,973 shares in the company, valued at approximately $90,061.03. The trade was a 82.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.01% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Sivia Capital Partners LLC increased its position in shares of HSBC by 19.0% during the second quarter. Sivia Capital Partners LLC now owns 11,896 shares of the financial services provider’s stock valued at $723,000 after buying an additional 1,899 shares during the period. Invesco Ltd. boosted its position in shares of HSBC by 22.5% in the second quarter. Invesco Ltd. now owns 7,052 shares of the financial services provider’s stock valued at $429,000 after acquiring an additional 1,295 shares during the period. Jump Financial LLC purchased a new position in HSBC during the second quarter valued at approximately $221,000. Cerity Partners LLC increased its holdings in HSBC by 3.1% during the 2nd quarter. Cerity Partners LLC now owns 98,708 shares of the financial services provider’s stock worth $6,000,000 after acquiring an additional 2,940 shares during the period. Finally, Qube Research & Technologies Ltd lifted its stake in HSBC by 36.7% in the 2nd quarter. Qube Research & Technologies Ltd now owns 365,570 shares of the financial services provider’s stock worth $22,223,000 after purchasing an additional 98,048 shares in the last quarter. Institutional investors own 1.48% of the company’s stock.

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.