HSBC (NYSE:HSBC) Reaches New 1-Year High – Here’s Why

Shares of HSBC Holdings plc (NYSE:HSBC) hit a new 52-week high during trading on Tuesday . The company traded as high as $96.90 and last traded at $96.4290, with a volume of 1104746 shares trading hands. The stock had previously closed at $94.97.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on HSBC. The Goldman Sachs Group assumed coverage on shares of HSBC in a report on Thursday, March 26th. They issued a “buy” rating for the company. Weiss Ratings cut shares of HSBC from a “hold (c+)” rating to a “hold (c)” rating in a research report on Wednesday, May 6th. Royal Bank Of Canada reiterated a “sector perform” rating on shares of HSBC in a report on Thursday, May 14th. Zacks Research cut shares of HSBC from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, May 5th. Finally, BNP Paribas Exane lowered HSBC from an “outperform” rating to a “neutral” rating in a research report on Tuesday, April 14th. Five investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat.com, HSBC currently has a consensus rating of “Hold”.

HSBC Trading Up 1.5%

The stock has a market cap of $331.40 billion, a P/E ratio of 15.81, a price-to-earnings-growth ratio of 0.84 and a beta of 0.56. 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 firm’s fifty day simple moving average is $91.50 and its 200-day simple moving average is $85.83.

HSBC (NYSE:HSBC) last posted its quarterly earnings data on Tuesday, March 31st. The financial services provider reported $0.44 earnings per share 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. Equities research analysts expect that HSBC Holdings plc will post 8.6 EPS for the current fiscal year.

HSBC Cuts Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Friday, May 15th will be given a $0.50 dividend. The ex-dividend date of this dividend is Friday, May 15th. This represents a $2.00 annualized dividend and a dividend yield of 2.1%. HSBC’s dividend payout ratio (DPR) is 32.46%.

Insider Activity

In related news, insider Daniel Scott Palomaki sold 23,123 shares of the company’s 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 sale, the insider owned 4,973 shares in the company, valued at $90,061.03. This represents a 82.30% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.01% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On HSBC

Institutional investors have recently added to or reduced their stakes in the business. Transamerica Financial Advisors LLC grew its position in shares of HSBC by 287.1% during the 4th 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 during the period. Measured Wealth Private Client Group LLC bought a new position in HSBC during the third quarter worth $26,000. Binnacle Investments Inc grew its holdings in HSBC by 80.5% in the third quarter. Binnacle Investments Inc now owns 444 shares of the financial services provider’s stock worth $32,000 after purchasing an additional 198 shares during the period. Western Wealth Management LLC bought a new stake in HSBC in the first quarter valued at $37,000. Finally, Whipplewood Advisors LLC acquired a new position in shares of HSBC during the first quarter valued at about $41,000. 1.48% of the stock is 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.