HSBC (NYSE:HSBC) Reaches New 12-Month High – Time to Buy?

HSBC Holdings plc (NYSE:HSBC) reached a new 52-week high during trading on Thursday . The stock traded as high as $83.05 and last traded at $82.8550, with a volume of 764856 shares traded. The stock had previously closed at $81.76.

HSBC News Roundup

Here are the key news stories impacting HSBC this week:

• Positive Sentiment: HSBC is reportedly exploring a sale of its Singapore insurance business — potential bids could value the unit at over $1 billion; a divestment would sharpen focus on core banking, free capital and may unlock shareholder value. HSBC exploring sale of Singapore insurance business — Bloomberg
• Positive Sentiment: Bloomberg reports HSBC is planning a risk-transfer linked to about €2 billion of corporate loans — a move that could reduce credit exposure and improve capital efficiency, which investors typically view favorably. HSBC planning risk transfer linked to EUR2 bil of corporate loans — Bloomberg
• Positive Sentiment: Leadership continuity: former HSBC chairman Tucker is reported to remain on as an adviser — this reassurance on governance and continuity can be supportive for investor confidence. Former HSBC chairman Tucker to stay adviser, Bloomberg reports
• Neutral Sentiment: Morgan Stanley initiated coverage on HSBC with an “equal weight” rating — this is neither a clear buy nor sell signal and may temper upside from recent momentum. (coverage note)
• Neutral Sentiment: HSBC research and regional developments: HSBC published thematic research (e.g., large addressable markets such as smart glasses) and regional surveys (UAE firms prioritizing sustainability), signaling active research output that can influence sentiment but is indirect to HSBC’s own earnings. Smart glasses market will be worth $200 billion by 2040, HSBC says
• Neutral Sentiment: Local business moves and partnerships: HSBC Singapore named a new head of propositions/customer life-cycle management and Canara HSBC Life (JV) launched products and attracted positive analyst attention — these are positive for regional franchises but are indirect for HSBC plc’s consolidated earnings. HSBC Singapore names new head of propositions and customer life cycle management

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on HSBC. Erste Group Bank raised HSBC from a “hold” rating to a “buy” rating in a research report on Thursday, November 20th. Weiss Ratings restated a “hold (c+)” rating on shares of HSBC in a research note on Monday, December 29th. Keefe, Bruyette & Woods upgraded HSBC from a “hold” rating to a “moderate buy” rating in a research note on Wednesday, December 17th. Bank of America upgraded shares of HSBC from a “neutral” rating to a “buy” rating in a report on Wednesday, December 10th. Finally, Jefferies Financial Group restated a “hold” rating on shares of HSBC in a research note on Friday, October 10th. Two equities research analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $63.00.

HSBC Stock Up 1.4%

The stock has a market cap of $284.75 billion, a PE ratio of 17.46, a P/E/G ratio of 0.99 and a beta of 0.52. The business has a 50 day moving average price of $75.02 and a 200 day moving average price of $69.10. The company has a quick ratio of 0.92, a current ratio of 0.92 and a debt-to-equity ratio of 0.49.

HSBC (NYSE:HSBC) last announced its quarterly earnings results on Tuesday, October 28th. The financial services provider reported $1.80 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.65 by $0.15. The company had revenue of $17.79 billion during the quarter, compared to the consensus estimate of $16.78 billion. HSBC had a return on equity of 12.78% and a net margin of 12.85%. Equities research analysts expect that HSBC Holdings plc will post 6.66 EPS for the current fiscal year.

HSBC Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, December 18th. Shareholders of record on Friday, November 7th were given a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 2.4%. This is an increase from HSBC’s previous quarterly dividend of $0.50. The ex-dividend date was Friday, November 7th. HSBC’s payout ratio is currently 41.68%.

Hedge Funds Weigh In On HSBC

A number of hedge funds have recently bought and sold shares of the business. Fisher Asset Management LLC increased its position in shares of HSBC by 9.2% in the second quarter. Fisher Asset Management LLC now owns 17,043,371 shares of the financial services provider’s stock valued at $1,036,067,000 after buying an additional 1,430,797 shares in the last quarter. JPMorgan Chase & Co. grew its stake in HSBC by 160.9% in the 2nd quarter. JPMorgan Chase & Co. now owns 502,200 shares of the financial services provider’s stock valued at $30,529,000 after acquiring an additional 309,738 shares during the period. Dimensional Fund Advisors LP raised its position in HSBC by 1.8% during the third quarter. Dimensional Fund Advisors LP now owns 10,575,644 shares of the financial services provider’s stock worth $750,659,000 after acquiring an additional 185,073 shares during the period. Foresight Global Investors Inc. purchased a new position in HSBC during the third quarter valued at $12,810,000. Finally, American Century Companies Inc. grew its position in shares of HSBC by 14.7% in the third quarter. American Century Companies Inc. now owns 1,311,820 shares of the financial services provider’s stock valued at $93,113,000 after purchasing an additional 168,438 shares during the period. Hedge funds and other 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.