HSBC (NYSE:HSBC) Reaches New 1-Year High – Still a Buy?

HSBC Holdings plc (NYSE:HSBC)’s share price reached a new 52-week high on Thursday . The company traded as high as $97.50 and last traded at $97.5740, with a volume of 147272 shares traded. The stock had previously closed at $95.81.

Key HSBC News

Here are the key news stories impacting HSBC this week:

• Positive Sentiment: HSBC disclosed routine share purchases and dividend-linked acquisitions by senior executives, which can signal management confidence and support investor sentiment. HSBC Discloses Dividend-Linked Share Acquisitions by Senior Executives
• Positive Sentiment: The bank confirmed its latest share capital and voting-rights totals, an operational update that typically reinforces transparency and may be viewed as neutral-to-slightly supportive by the market. HSBC Confirms Over 17.1 Billion Voting Rights in Latest Capital Update
• Positive Sentiment: Reports that HSBC is weighing a sale of its Türkiye unit to Emirates NBD suggest the company is continuing to streamline its global footprint and focus on core growth markets, which investors often view favorably. HSBC Weighs Turkey Exit as Emirates NBD Explores Acquisition Deal
• Positive Sentiment: HSBC also announced plans for a large integrated campus in Bengaluru, signaling continued investment in operational capacity and long-term growth infrastructure. HSBC to develop 1.2 mn sq ft integrated campus in Bengaluru with Prestige
• Neutral Sentiment: Several HSBC-linked market commentary pieces highlighted macro risks, including warnings about “pain trades” and currency volatility; these are more about HSBC’s market view than its own earnings outlook. Markets should beware ‘pain trade’ shocks in the second half: HSBC

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on the company. The Goldman Sachs Group initiated coverage on HSBC in a research note on Thursday, March 26th. They issued a “buy” rating for the company. Weiss Ratings downgraded shares of HSBC from a “hold (c+)” rating to a “hold (c)” rating in a report on Wednesday, May 6th. Zacks Research lowered shares of HSBC from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, May 5th. Royal Bank Of Canada reissued a “sector perform” rating on shares of HSBC in a research report on Thursday, May 14th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating on shares of HSBC in a report on Tuesday, June 23rd. Five analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold”.

HSBC Stock Performance

The firm has a fifty day moving average of $92.03 and a 200 day moving average of $86.94. 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 stock has a market capitalization of $334.58 billion, a price-to-earnings ratio of 15.97, a price-to-earnings-growth ratio of 0.84 and a beta of 0.57.

HSBC (NYSE:HSBC) last released its quarterly earnings data on Tuesday, March 31st. The financial services provider reported $0.44 EPS for the quarter. The business had revenue of $19.12 billion for the quarter. HSBC had a return on equity of 13.35% and a net margin of 16.06%. On average, sell-side analysts anticipate that HSBC Holdings plc will post 8.67 earnings per share for the current fiscal year.

HSBC Cuts Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Friday, May 15th were issued a dividend of $0.50 per share. The ex-dividend date of this dividend was Friday, May 15th. This represents a $2.00 dividend on an annualized basis and a yield of 2.1%. HSBC’s dividend payout ratio is 32.46%.

Insiders Place Their Bets

In other HSBC news, insider Daniel Scott Palomaki sold 23,123 shares of the company’s stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $18.11, for a total value of $418,757.53. Following the completion of the transaction, the insider owned 4,973 shares in the company, valued at approximately $90,061.03. This represents a 82.30% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 0.01% of the company’s stock.

Institutional Investors Weigh In On HSBC

A number of institutional investors have recently modified their holdings of HSBC. Foresight Global Investors Inc. purchased a new position in HSBC during the third quarter valued at $12,810,000. American Century Companies Inc. lifted its stake in HSBC by 14.7% in the 3rd quarter. American Century Companies Inc. now owns 1,311,820 shares of the financial services provider’s stock valued at $93,113,000 after buying an additional 168,438 shares in the last quarter. Northwestern Mutual Wealth Management Co. boosted its holdings in HSBC by 1,272.2% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 909,464 shares of the financial services provider’s stock worth $71,548,000 after buying an additional 843,186 shares during the last quarter. Bleakley Financial Group LLC purchased a new stake in HSBC during the 4th quarter worth approximately $988,000. Finally, Assetmark Inc. raised its holdings in shares of HSBC by 74.6% during the fourth quarter. Assetmark Inc. now owns 47,456 shares of the financial services provider’s stock valued at $3,733,000 after acquiring an additional 20,281 shares during the last quarter. 1.48% of the stock is currently owned by institutional investors and hedge funds.

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.