HSBC Downgrades HDFC Bank (NYSE:HDB) to Hold

Key Points

• HSBC downgraded HDFC Bank from “buy” to “hold,” bringing the analyst consensus to “hold” with one buy and three hold ratings, while Wall Street Zen separately rated the stock “sell.”
• HDFC Bank opened at $23.07, near its 12-month low of $22.45 and below its 50-day and 200-day moving averages. The bank has a market capitalization of approximately $118.4 billion and a P/E ratio of 13.57.
• The bank’s latest quarterly results exceeded expectations, with EPS of $0.40 versus the $0.38 estimate and revenue of $9.01 billion; institutional investors and hedge funds currently own 17.61% of the stock.

HDFC Bank (NYSE:HDB - Get Free Report) was downgraded by equities researchers at HSBC from a "buy" rating to a "hold" rating in a report released on Monday, Marketbeat reports.

Several other equities research analysts have also recently issued reports on HDB. The Goldman Sachs Group started coverage on HDFC Bank in a report on Friday, August 21st. They set a "buy" rating on the stock. Weiss Ratings upgraded HDFC Bank from a "sell (d+)" rating to a "hold (c-)" rating in a report on Monday, July 20th. Zacks Research upgraded shares of HDFC Bank from a "strong sell" rating to a "hold" rating in a report on Friday, July 17th. Finally, Wall Street Zen downgraded shares of HDFC Bank from a "hold" rating to a "sell" rating in a report on Saturday, July 18th. One investment analyst has rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Hold".

HDFC Bank Trading Down 0.0%

NYSE:HDB opened at $23.07 on Monday. The firm has a 50-day moving average price of $24.49 and a two-hundred day moving average price of $25.98. HDFC Bank has a twelve month low of $22.45 and a twelve month high of $37.45. The company has a market capitalization of $118.38 billion, a P/E ratio of 13.57, a price-to-earnings-growth ratio of 1.09 and a beta of 0.65.

HDFC Bank (NYSE:HDB - Get Free Report) last announced its earnings results on Saturday, July 18th. The bank reported $0.40 EPS for the quarter, beating analysts' consensus estimates of $0.38 by $0.02. HDFC Bank had a return on equity of 11.84% and a net margin of 15.96%.The firm had revenue of $9.01 billion for the quarter, compared to analysts' expectations of $5 billion. On average, equities research analysts predict that HDFC Bank will post 1.67 earnings per share for the current year.

Institutional Trading of HDFC Bank

Large investors have recently added to or reduced their stakes in the stock. Larson Financial Group LLC lifted its stake in shares of HDFC Bank by 90.4% during the third quarter. Larson Financial Group LLC now owns 849 shares of the bank's stock worth $29,000 after purchasing an additional 403 shares in the last quarter. Axiom Investment Management LLC purchased a new stake in shares of HDFC Bank during the 1st quarter valued at about $32,000. Bell Investment Advisors Inc raised its holdings in shares of HDFC Bank by 260.9% during the 1st quarter. Bell Investment Advisors Inc now owns 1,386 shares of the bank's stock valued at $34,000 after buying an additional 1,002 shares during the period. Pin Oak Investment Advisors Inc. lifted its position in HDFC Bank by 100.0% during the 3rd quarter. Pin Oak Investment Advisors Inc. now owns 996 shares of the bank's stock worth $34,000 after acquiring an additional 498 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd acquired a new position in HDFC Bank during the 3rd quarter worth approximately $43,000. 17.61% of the stock is currently owned by institutional investors and hedge funds.

HDFC Bank Company Profile

HDFC Bank Limited is one of India's leading private sector banks, headquartered in Mumbai. Incorporated in 1994 and promoted by Housing Development Finance Corporation (HDFC), the bank provides a full range of banking and financial services to retail, small and medium-sized enterprises, and corporate customers. It is publicly listed and also accessible to international investors through American Depositary Receipts (ADRs) trading on the New York Stock Exchange under the symbol HDB.

The bank's core activities include retail banking (deposit accounts, personal loans, home loans, auto loans, and credit cards), commercial and corporate banking (working capital finance, term lending, trade finance and treasury services), and transaction banking (cash management and payment solutions).

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