Abacus Wealth Partners LLC Makes New $1.20 Million Investment in HSBC Holdings plc $HSBC

Key Points

• Abacus Wealth Partners opened a new position in HSBC during the fourth quarter, buying 15,214 shares valued at about $1.2 million.
• HSBC is facing renewed scrutiny over its private credit strategy after reports that it paused a $4 billion investment commitment following a $400 million hit tied to a lender collapse, though the bank later said it remains committed to the offering.
• Analyst sentiment is mixed to cautious: several firms recently downgraded HSBC, and the stock currently carries an overall Hold rating with an average target price of $63.

Abacus Wealth Partners LLC purchased a new position in HSBC Holdings plc (NYSE:HSBC - Free Report) during the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund purchased 15,214 shares of the financial services provider's stock, valued at approximately $1,197,000.

Several other hedge funds have also recently added to or reduced their stakes in HSBC. Cornerstone Planning Group LLC increased its stake in shares of HSBC by 30.7% in the fourth quarter. Cornerstone Planning Group LLC now owns 498 shares of the financial services provider's stock worth $43,000 after buying an additional 117 shares during the period. Lester Murray Antman dba SimplyRich increased its stake in shares of HSBC by 1.0% in the fourth quarter. Lester Murray Antman dba SimplyRich now owns 12,445 shares of the financial services provider's stock worth $979,000 after buying an additional 123 shares during the period. Checchi Capital Advisers LLC increased its stake in shares of HSBC by 0.5% in the fourth quarter. Checchi Capital Advisers LLC now owns 26,554 shares of the financial services provider's stock worth $2,089,000 after buying an additional 144 shares during the period. Net Worth Advisory Group increased its stake in shares of HSBC by 2.3% in the fourth quarter. Net Worth Advisory Group now owns 6,466 shares of the financial services provider's stock worth $509,000 after buying an additional 146 shares during the period. Finally, Bridgewater Advisors Inc. increased its stake in shares of HSBC by 1.9% in the third quarter. Bridgewater Advisors Inc. now owns 8,186 shares of the financial services provider's stock worth $589,000 after buying an additional 153 shares during the period. Institutional investors and hedge funds own 1.48% of the company's stock.

Key Stories Impacting HSBC

Here are the key news stories impacting HSBC this week:

• Negative Sentiment: HSBC reportedly paused a $4 billion investment into its private credit funds after taking a $400 million hit linked to a recent collapse in British mortgage lender Market Financial Solutions, raising concerns about risk management and potential further fallout. Reuters article on HSBC pauses $4 billion private credit investment after fraud hit
• Negative Sentiment: The Financial Times report about the pause adds to investor unease around HSBC’s private credit exposure, since the bank had positioned the $4 billion commitment as part of a broader growth push in asset management. Article on HSBC sits on $4 billion in private credit dry powder amid sector turmoil
• Neutral Sentiment: HSBC later said it remains committed to its private credit offerings, which may help limit concerns that the bank is abandoning the strategy altogether. PYMNTS article on HSBC reaffirms $4 billion private credit bet
• Neutral Sentiment: HSBC also announced it will redeem CNH2.75 billion of 2027 notes, a routine capital markets action that is unlikely to materially affect sentiment. TipRanks article on HSBC redeem CNH2.75bn 2027 notes and cancel listings

Analyst Ratings Changes

HSBC has been the topic of several analyst reports. Zacks Research downgraded shares of HSBC from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, May 5th. Weiss Ratings downgraded shares of HSBC from a "hold (c+)" rating to a "hold (c)" rating in a research note on Wednesday, May 6th. BNP Paribas Exane downgraded shares of HSBC from an "outperform" rating to a "neutral" rating in a research note on Tuesday, April 14th. Royal Bank Of Canada reaffirmed a "sector perform" rating on shares of HSBC in a research note on Thursday. Finally, The Goldman Sachs Group initiated coverage on shares of HSBC in a research note on Thursday, March 26th. They issued a "buy" rating on the stock. Five equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $63.00.

HSBC Stock Down 2.5%

Shares of HSBC stock opened at $88.41 on Friday. The company has a current ratio of 0.92, a quick ratio of 0.92 and a debt-to-equity ratio of 0.52. The company's fifty day simple moving average is $86.37 and its two-hundred day simple moving average is $81.73. The company has a market cap of $303.84 billion, a P/E ratio of 14.49, a PEG ratio of 0.89 and a beta of 0.56. HSBC Holdings plc has a 12-month low of $58.14 and a 12-month high of $94.79.

HSBC (NYSE:HSBC - Get Free Report) last issued its quarterly earnings data on Tuesday, March 31st. The financial services provider reported $0.44 earnings per share (EPS) for the quarter. The business had revenue of $19.13 billion for the quarter. HSBC had a net margin of 16.06% and a return on equity of 13.35%. Research analysts anticipate that HSBC Holdings plc will post 8.51 EPS for the current year.

HSBC Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Friday, May 15th will be given a $0.50 dividend. The ex-dividend date of this dividend is Friday, May 15th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 2.3%. HSBC's dividend payout ratio is currently 147.21%.

Insider Buying and Selling at HSBC

In other 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 sale, the insider directly owned 4,973 shares of the company's stock, valued at $90,061.03. This represents a 82.30% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 0.01% of the stock is owned by corporate insiders.

HSBC Company Profile

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.

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