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

HSBC Holdings plc (NYSE:HSBC) hit a new 52-week high on Tuesday . The company traded as high as $57.62 and last traded at $57.65, with a volume of 101984 shares. The stock had previously closed at $55.70.

Analysts Set New Price Targets

Several brokerages have issued reports on HSBC. Royal Bank of Canada reaffirmed a “sector perform” rating on shares of HSBC in a research note on Monday, February 3rd. Deutsche Bank Aktiengesellschaft downgraded HSBC from a “buy” rating to a “hold” rating in a report on Monday, February 3rd.

HSBC Price Performance

The firm has a 50-day moving average of $51.40 and a 200-day moving average of $47.28. The firm has a market capitalization of $204.97 billion, a P/E ratio of 9.23, a PEG ratio of 1.05 and a beta of 0.54. The company has a debt-to-equity ratio of 0.69, a quick ratio of 0.96 and a current ratio of 0.88.

HSBC (NYSE:HSBC) last issued its earnings results on Wednesday, February 19th. The financial services provider reported $1.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.41 by $0.04. The company had revenue of $11.56 billion for the quarter, compared to analysts’ expectations of $13.79 billion. HSBC had a net margin of 16.17% and a return on equity of 12.20%. As a group, analysts predict that HSBC Holdings plc will post 6.66 EPS for the current year.

HSBC Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, April 25th. Stockholders of record on Friday, March 7th will be given a dividend of $1.80 per share. This represents a $7.20 dividend on an annualized basis and a dividend yield of 12.58%. The ex-dividend date is Friday, March 7th. HSBC’s payout ratio is 115.81%.

Hedge Funds Weigh In On HSBC

Institutional investors and hedge funds have recently bought and sold shares of the stock. FMR LLC grew its stake in shares of HSBC by 18.1% during the 4th quarter. FMR LLC now owns 2,883,238 shares of the financial services provider’s stock valued at $142,605,000 after acquiring an additional 441,033 shares during the period. Northern Trust Corp lifted its stake in shares of HSBC by 52.0% during the 4th quarter. Northern Trust Corp now owns 2,781,307 shares of the financial services provider’s stock valued at $137,563,000 after buying an additional 951,050 shares in the last quarter. American Century Companies Inc. boosted its holdings in HSBC by 4.5% in the 4th quarter. American Century Companies Inc. now owns 937,065 shares of the financial services provider’s stock worth $46,347,000 after buying an additional 40,388 shares during the period. Crossmark Global Holdings Inc. increased its stake in HSBC by 2.8% in the 4th quarter. Crossmark Global Holdings Inc. now owns 514,642 shares of the financial services provider’s stock worth $25,454,000 after buying an additional 14,095 shares in the last quarter. Finally, O Shaughnessy Asset Management LLC raised its holdings in HSBC by 26.9% during the fourth quarter. O Shaughnessy Asset Management LLC now owns 401,960 shares of the financial services provider’s stock valued at $19,881,000 after acquiring an additional 85,104 shares during the period. 1.48% of the stock is currently owned by hedge funds and other institutional investors.

About HSBC

HSBC Holdings plc provides banking and financial services worldwide. The company operates through Wealth and Personal Banking, Commercial Banking, and Global Banking and Markets segments. The Wealth and Personal Banking segment offers retail banking and wealth products, including current and savings accounts, mortgages and personal loans, credit and debit cards, and local and international payment services; and wealth management services comprising insurance and investment products, global asset management services, investment management, and private wealth solutions.