HSBC (NYSE:HSBC) Reaches New 52-Week High – Should You Buy?

HSBC Holdings plc (NYSE:HSBC)’s share price hit a new 52-week high on Wednesday . The company traded as high as $95.79 and last traded at $95.9150, with a volume of 25211 shares changing hands. The stock had previously closed at $94.45.

Wall Street Analyst Weigh In

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

HSBC Price Performance

The company has a market capitalization of $326.72 billion, a P/E ratio of 15.58, a price-to-earnings-growth ratio of 0.85 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 firm’s 50-day moving average is $91.28 and its 200-day moving average is $85.49.

HSBC (NYSE:HSBC) last released its quarterly earnings results 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 business had revenue of $19.12 billion for the quarter. Analysts predict that HSBC Holdings plc will post 8.6 EPS for the current fiscal year.

HSBC Cuts Dividend

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

Insiders Place Their Bets

In other HSBC news, insider Daniel Scott Palomaki sold 23,123 shares of the business’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 completion of the sale, the insider owned 4,973 shares of the company’s stock, valued at approximately $90,061.03. The trade was a 82.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Company insiders own 0.01% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Sivia Capital Partners LLC increased its holdings in HSBC by 19.0% in the 2nd quarter. Sivia Capital Partners LLC now owns 11,896 shares of the financial services provider’s stock worth $723,000 after acquiring an additional 1,899 shares in the last quarter. Invesco Ltd. lifted its holdings in HSBC by 22.5% during the second quarter. Invesco Ltd. now owns 7,052 shares of the financial services provider’s stock valued at $429,000 after purchasing an additional 1,295 shares in the last quarter. Jump Financial LLC bought a new position in shares of HSBC in the second quarter worth approximately $221,000. Cerity Partners LLC increased its stake in shares of HSBC by 3.1% in the second quarter. Cerity Partners LLC now owns 98,708 shares of the financial services provider’s stock worth $6,000,000 after purchasing an additional 2,940 shares in the last quarter. Finally, Qube Research & Technologies Ltd increased its stake in shares of HSBC by 36.7% in the second 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. 1.48% of the stock is owned by hedge funds and other institutional investors.

About HSBC

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.