Cubist Systematic Strategies LLC Purchases New Stake in HSBC Holdings plc $HSBC

Key Points

• Cubist Systematic Strategies LLC invested approximately $1.56 million in HSBC Holdings plc, acquiring 27,237 shares in the first quarter.
• HSBC's stock rating was raised from "underperform" to "outperform" by BNP Paribas Exane, while Bank of America issued a neutral rating with a target price of $63.00.
• The company announced a quarterly dividend of $0.495 per share, resulting in a 3.0% dividend yield, with the dividend payment scheduled for September 26th.

Cubist Systematic Strategies LLC acquired a new stake in shares of HSBC Holdings plc (NYSE:HSBC - Free Report) in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 27,237 shares of the financial services provider's stock, valued at approximately $1,564,000.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in HSBC. Contrarian Capital Management L.L.C. boosted its position in HSBC by 425.4% during the 1st quarter. Contrarian Capital Management L.L.C. now owns 1,265,656 shares of the financial services provider's stock worth $72,687,000 after acquiring an additional 1,024,780 shares during the period. GAMMA Investing LLC boosted its position in HSBC by 7,061.5% during the 1st quarter. GAMMA Investing LLC now owns 559,311 shares of the financial services provider's stock worth $321,210,000 after acquiring an additional 551,501 shares during the period. Connor Clark & Lunn Investment Management Ltd. boosted its position in HSBC by 729.6% during the 1st quarter. Connor Clark & Lunn Investment Management Ltd. now owns 387,953 shares of the financial services provider's stock worth $22,280,000 after acquiring an additional 341,187 shares during the period. 1832 Asset Management L.P. acquired a new position in HSBC during the 1st quarter worth $17,430,000. Finally, Gunderson Capital Management Inc. acquired a new position in HSBC during the 1st quarter worth $10,287,000. Institutional investors and hedge funds own 1.48% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on HSBC. Bank of America reiterated a "neutral" rating and set a $63.00 price target on shares of HSBC in a research report on Tuesday, June 3rd. BNP Paribas Exane upgraded HSBC from an "underperform" rating to an "outperform" rating in a research report on Friday, September 5th. Finally, BNP Paribas upgraded HSBC from a "strong sell" rating to a "strong-buy" rating in a report on Friday, September 5th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, HSBC presently has a consensus rating of "Moderate Buy" and an average target price of $63.00.

HSBC Price Performance

Shares of HSBC stock traded down $0.47 during trading on Friday, hitting $68.69. The stock had a trading volume of 607,285 shares, compared to its average volume of 2,009,541. The business has a fifty day moving average of $63.97 and a two-hundred day moving average of $59.51. The firm has a market cap of $238.39 billion, a P/E ratio of 13.61, a PEG ratio of 1.53 and a beta of 0.65. The company has a debt-to-equity ratio of 0.65, a current ratio of 0.86 and a quick ratio of 0.93. HSBC Holdings plc has a fifty-two week low of $43.38 and a fifty-two week high of $69.32.

HSBC (NYSE:HSBC - Get Free Report) last announced its earnings results on Wednesday, July 30th. The financial services provider reported $1.95 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.62 by $0.33. The company had revenue of $16.90 billion for the quarter, compared to analyst estimates of $16.64 billion. HSBC had a return on equity of 12.73% and a net margin of 13.48%. On average, sell-side analysts expect that HSBC Holdings plc will post 6.66 earnings per share for the current fiscal year.

HSBC Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, September 26th. Stockholders of record on Friday, August 15th will be given a dividend of $0.495 per share. The ex-dividend date of this dividend is Friday, August 15th. This represents a $1.98 dividend on an annualized basis and a dividend yield of 2.9%. HSBC's payout ratio is 39.21%.

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.