Shares of HSBC Holdings plc (NYSE:HSBC – Get Free Report) have been given an average rating of “Hold” by the sixteen analysts that are presently covering the firm, MarketBeat.com reports. Two analysts have rated the stock with a sell rating, eleven have assigned a hold rating and three have issued a buy rating on the company. The average 12 month target price among brokerages that have covered the stock in the last year is $97.00.
HSBC has been the topic of a number of recent research reports. The Goldman Sachs Group reissued a “buy” rating on shares of HSBC in a research report on Wednesday, August 5th. Royal Bank Of Canada restated a “sector perform” rating on shares of HSBC in a research note on Monday, August 17th. BNP Paribas Exane lowered shares of HSBC from a “hold” rating to a “strong sell” rating and cut their target price for the company from $100.50 to $97.00 in a research note on Tuesday, August 4th. Erste Group Bank lowered shares of HSBC from a “buy” rating to a “hold” rating in a research note on Wednesday, July 15th. Finally, Citigroup restated a “neutral” rating on shares of HSBC in a report on Wednesday, September 23rd.
Read Our Latest Stock Analysis on HSBC
HSBC Trading Up 0.4%
HSBC (NYSE:HSBC – Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The financial services provider reported $2.25 earnings per share for the quarter, topping analysts’ consensus estimates of $2.24 by $0.01. HSBC had a return on equity of 13.80% and a net margin of 18.19%. The company had revenue of $19.04 billion for the quarter, compared to analyst estimates of $18.66 billion. Equities analysts forecast that HSBC will post 8.55 EPS for the current fiscal year.
HSBC Announces Dividend
The business also recently disclosed a quarterly dividend, which was paid on Friday, September 25th. Shareholders of record on Friday, August 14th were paid a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a yield of 2.2%. The ex-dividend date was Friday, August 14th. HSBC’s dividend payout ratio is currently 28.09%.
Institutional Inflows and Outflows
A number of large investors have recently added to or reduced their stakes in the business. Bank of America Corp DE grew its holdings in shares of HSBC by 5.5% during the first quarter. Bank of America Corp DE now owns 2,385,883 shares of the financial services provider’s stock worth $196,811,000 after buying an additional 124,201 shares in the last quarter. Clearbridge Investments LLC lifted its holdings in HSBC by 77.0% during the 4th quarter. Clearbridge Investments LLC now owns 1,443,716 shares of the financial services provider’s stock valued at $113,577,000 after purchasing an additional 627,857 shares during the last quarter. Royal Bank of Canada boosted its position in HSBC by 17.3% during the first quarter. Royal Bank of Canada now owns 1,304,192 shares of the financial services provider’s stock worth $107,582,000 after purchasing an additional 192,133 shares during the period. O Shaughnessy Asset Management LLC boosted its position in HSBC by 9.7% during the fourth quarter. O Shaughnessy Asset Management LLC now owns 590,663 shares of the financial services provider’s stock worth $46,467,000 after purchasing an additional 52,425 shares during the period. Finally, Quantinno Capital Management LP increased its holdings in shares of HSBC by 20.9% in the first quarter. Quantinno Capital Management LP now owns 525,775 shares of the financial services provider’s stock valued at $43,371,000 after purchasing an additional 90,711 shares during the last quarter. 1.48% of the stock is currently owned by institutional investors and hedge funds.
Key Headlines Impacting HSBC
Here are the key news stories impacting HSBC this week:
- Positive Sentiment: AI-powered payments trial highlights fintech potential. HSBC and Ant Digital Technologies successfully tested AI agents discovering digital services and making micropayments with HSBC’s tokenized deposits. The trial used real-time blockchain settlement and risk checks, supporting HSBC’s positioning in tokenized money, embedded finance and machine-to-machine payments. HSBC, Ant Digital test AI-agent payments using tokenized deposits
- Positive Sentiment: Potential cost savings from AI restructuring. Reports that HSBC may eliminate up to 70% of UK wealth-adviser roles could eventually improve operating efficiency and margins if automation successfully replaces routine advisory work. However, the financial benefit depends on implementation and retaining high-value client relationships. HSBC Layoffs: Bank Plans To Cut up to 70% of UK Wealth Adviser Roles
- Neutral Sentiment: Analysts question whether AI is mature enough to justify the wealth cuts. Industry experts reportedly criticized the scale and timing of HSBC’s reductions, raising concerns about service quality, employee disruption and possible execution costs that could offset near-term savings. HSBC’s wealth cuts not justified by AI maturity, say experts
- Neutral Sentiment: Management and branding updates have limited immediate earnings impact. HSBC appointed Henry Tong as Singapore head of customer, international and marketing and sponsored a Bermuda football academy. These developments may support local relationships and brand visibility but are unlikely to materially affect near-term valuation. HSBC names Henry Tong as Singapore head
- Negative Sentiment: Workforce reductions create reputational and execution risks. The reported adviser cuts could weaken customer service and morale while increasing scrutiny of HSBC’s reliance on automation. A former HSBC banker’s separate regulatory ban is not a corporate event, but adds unfavorable headlines around the HSBC name. Former HSBC banker banned from finance
HSBC Company Profile
HSBC Holdings plc is a global banking and financial services group headquartered in London. Its origins date to the founding of The Hongkong and Shanghai Banking Corporation in 1865, established to support trade between Europe and Asia. HSBC operates through a network spanning major markets in Asia, Europe, the Middle East, North America and Latin America.
The company provides services to personal, commercial and institutional customers. Its activities include retail and wealth banking, commercial banking, global banking and markets, investment banking, trade finance, transaction banking, foreign exchange, lending, insurance and asset management.
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