HSBC (NYSE:HSBC) Downgraded by BNP Paribas Exane to Strong Sell

BNP Paribas Exane downgraded shares of HSBC (NYSE:HSBC) from a hold rating to a strong sell rating in a research note published on Tuesday morning,Zacks.com reports.

HSBC has been the subject of a number of other reports. Weiss Ratings reaffirmed a “hold (c)” rating on shares of HSBC in a research report on Monday. Royal Bank Of Canada reissued a “sector perform” rating on shares of HSBC in a research report on Thursday, May 14th. Citigroup downgraded HSBC from a “strong-buy” rating to a “hold” rating in a research report on Tuesday. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating on shares of HSBC in a research note on Tuesday, June 23rd. Finally, Zacks Research downgraded HSBC from a “strong-buy” rating to a “hold” rating in a report on Tuesday, May 5th. Three equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, HSBC presently has a consensus rating of “Hold”.

HSBC Stock Down 3.2%

HSBC opened at $102.63 on Tuesday. HSBC has a 1 year low of $62.43 and a 1 year high of $107.92. The firm has a 50 day moving average price of $97.34 and a 200 day moving average price of $90.82. The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.92 and a current ratio of 0.92. The company has a market cap of $352.72 billion, a PE ratio of 14.56, a price-to-earnings-growth ratio of 0.94 and a beta of 0.57.

HSBC (NYSE:HSBC) last released its quarterly earnings data on Tuesday, August 4th. The financial services provider reported $2.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.24 by $0.01. HSBC had a net margin of 18.19% and a return on equity of 13.74%. The company had revenue of $19.04 billion during the quarter, compared to the consensus estimate of $18.66 billion. Sell-side analysts expect that HSBC will post 8.64 earnings per share for the current year.

HSBC Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Friday, August 14th will be issued a $0.50 dividend. The ex-dividend date is Friday, August 14th. This represents a $2.00 dividend on an annualized basis and a yield of 1.9%. HSBC’s payout ratio is currently 28.09%.

Institutional Trading of HSBC

A number of hedge funds and other institutional investors have recently modified their holdings of HSBC. Cornerstone Planning Group LLC grew its position in HSBC by 30.7% in the fourth quarter. Cornerstone Planning Group LLC now owns 498 shares of the financial services provider’s stock valued at $43,000 after acquiring an additional 117 shares during the period. Westover Capital Advisors LLC lifted its position in shares of HSBC by 1.3% during the first quarter. Westover Capital Advisors LLC now owns 9,313 shares of the financial services provider’s stock worth $768,000 after purchasing an additional 120 shares in the last quarter. Lester Murray Antman dba SimplyRich grew its stake in shares of HSBC by 1.0% during the fourth quarter. Lester Murray Antman dba SimplyRich now owns 12,445 shares of the financial services provider’s stock valued at $979,000 after purchasing an additional 123 shares during the last quarter. Ellevest Inc. raised its position in HSBC by 0.7% in the 4th quarter. Ellevest Inc. now owns 18,219 shares of the financial services provider’s stock worth $1,433,000 after purchasing an additional 131 shares during the last quarter. Finally, Federation des caisses Desjardins du Quebec boosted its position in HSBC by 5.3% in the 4th quarter. Federation des caisses Desjardins du Quebec now owns 2,658 shares of the financial services provider’s stock valued at $209,000 after buying an additional 133 shares during the last quarter. 1.48% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting HSBC

Here are the key news stories impacting HSBC this week:

• Positive Sentiment: HSBC expanded its debt tender offer and increased the maximum amount allocated to repurchasing certain senior notes, including the May 2028 notes. The move could improve funding efficiency and reduce outstanding debt. HSBC Expands Debt Tender Offer and Raises May 2028 Notes Cap
• Positive Sentiment: HSBC’s second-quarter results showed strong momentum: pre-tax profit rose about 60% year over year to $10.1 billion, supported by higher revenue, lower costs and improved credit impairments. The bank also raised its 2026 banking net-interest-income outlook. HSBC Q2 Pre-Tax Earnings Improve Year over Year
• Positive Sentiment: The company declared a quarterly dividend of $0.50 per share, payable September 25 to shareholders of record August 14. HSBC also plans to resume share buybacks of up to $1 billion, reinforcing its capital-return program. HSBC Resumes Share Buybacks on Earnings Beat
• Neutral Sentiment: HSBC identified 10 Indian stocks, including ICICI Bank, Titan, M&M and Adani Ports, that it expects to benefit from potential foreign-equity inflows of up to $25 billion into India. The recommendations highlight HSBC’s research and regional franchise, but do not directly change HSBC’s earnings outlook. HSBC India Stock Picks
• Negative Sentiment: Investors focused on elevated expected credit losses, including exposures tied to UK fraud and Hong Kong commercial real estate, while HSBC’s CET1 ratio declined to 14.1%. Some investors also viewed the $1 billion buyback as modest relative to the stock’s recent rally. HSBC Credit Risk and Capital Questions
• Negative Sentiment: Citi downgraded HSBC to “neutral” from “buy,” arguing that the shares may need to consolidate after their sharp advance. The bank trades at approximately 11 times forward earnings and 2.2 times tangible book value, limiting near-term upside in Citi’s view. Citi Downgrades HSBC to Neutral
• Negative Sentiment: Reports that China is taxing returns from offshore insurance policies triggered a broader sell-off in Asia-focused financial stocks, including HSBC, on concern that the policy could weaken demand from mainland customers. China Closes Offshore Tax Loophole

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.