ABC Arbitrage SA Lowers Position in HSBC Holdings plc $HSBC

Key Points

• ABC Arbitrage SA reduced its HSBC stake by 21.4% in the first quarter, selling 77,235 shares and leaving it with 283,097 shares valued at about $23.35 million.
• HSBC shares were down 1.0% in Tuesday trading, with the stock opening at $98.14 and trading near its 52-week high of $99.47.
• HSBC reported quarterly EPS of $0.44 and revenue of $19.12 billion, while also paying a $0.50 quarterly dividend that equates to a 2.0% annual yield.

ABC Arbitrage SA lessened its stake in HSBC Holdings plc (NYSE:HSBC - Free Report) by 21.4% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 283,097 shares of the financial services provider's stock after selling 77,235 shares during the period. HSBC makes up approximately 3.1% of ABC Arbitrage SA's holdings, making the stock its 9th largest position. ABC Arbitrage SA's holdings in HSBC were worth $23,353,000 at the end of the most recent reporting period.

Other hedge funds have also added to or reduced their stakes in the company. Fisher Asset Management LLC grew its holdings in shares of HSBC by 2.3% in the fourth quarter. Fisher Asset Management LLC now owns 17,800,748 shares of the financial services provider's stock worth $1,400,385,000 after acquiring an additional 402,288 shares during the period. Morgan Stanley increased its position in shares of HSBC by 15.3% during the 4th quarter. Morgan Stanley now owns 7,483,883 shares of the financial services provider's stock valued at $588,757,000 after purchasing an additional 993,473 shares during the last quarter. Northern Trust Corp grew its position in shares of HSBC by 4.7% during the 3rd quarter. Northern Trust Corp now owns 3,045,134 shares of the financial services provider's stock valued at $216,144,000 after acquiring an additional 136,342 shares during the period. Clearbridge Investments LLC increased its stake in shares of HSBC by 77.0% in the 4th quarter. Clearbridge Investments LLC now owns 1,443,716 shares of the financial services provider's stock worth $113,577,000 after purchasing an additional 627,857 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. increased its stake in shares of 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 purchasing an additional 843,186 shares in the last quarter. 1.48% of the stock is currently owned by hedge funds and other institutional investors.

HSBC Trading Down 1.0%

Shares of HSBC opened at $98.14 on Tuesday. The firm has a market cap of $337.29 billion, a P/E ratio of 16.09, a price-to-earnings-growth ratio of 0.87 and a beta of 0.57. The company has a debt-to-equity ratio of 0.52, a current ratio of 0.92 and a quick ratio of 0.92. HSBC Holdings plc has a 1 year low of $60.61 and a 1 year high of $99.47. The company has a 50 day simple moving average of $93.22 and a two-hundred day simple moving average of $88.12.

HSBC (NYSE:HSBC - Get Free Report) last released its earnings results on Tuesday, March 31st. The financial services provider reported $0.44 EPS for the quarter. The firm had revenue of $19.12 billion for the quarter. HSBC had a net margin of 16.06% and a return on equity of 13.35%. On average, equities analysts expect that HSBC Holdings plc will post 8.69 earnings per share for the current fiscal year.

HSBC Cuts Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Friday, May 15th were paid a $0.50 dividend. The ex-dividend date was Friday, May 15th. This represents a $2.00 annualized dividend and a yield of 2.0%. HSBC's payout ratio is presently 32.46%.

Wall Street Analysts Forecast Growth

A number of analysts have commented on the company. Weiss Ratings cut HSBC from a "hold (c+)" rating to a "hold (c)" rating in a research report on Wednesday, May 6th. The Goldman Sachs Group started coverage on shares of HSBC in a research note on Thursday, March 26th. They issued a "buy" rating for the company. BNP Paribas Exane downgraded shares of HSBC from an "outperform" rating to a "neutral" rating in a research report on Tuesday, April 14th. Royal Bank Of Canada reaffirmed a "sector perform" rating on shares of HSBC in a report on Thursday, May 14th. Finally, Zacks Research lowered HSBC from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, May 5th. Five investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Hold".

Insider Activity at HSBC

In other HSBC news, insider Daniel Scott Palomaki sold 23,123 shares of the stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $18.11, for a total transaction of $418,757.53. Following the completion of the transaction, the insider 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 document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.01% of the stock is owned by company insiders.

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.

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