DJE Kapital AG Reduces Holdings in HDFC Bank Limited $HDB

Key Points

• DJE Kapital AG cut its HDFC Bank stake by 84.5% in the first quarter, selling more than 1.43 million shares and leaving it with 262,531 shares worth about $6.46 million.
• HDFC Bank reported quarterly earnings of $0.39 per share, slightly below estimates, but revenue of $9.01 billion topped forecasts by a wide margin. The bank also posted solid loan and deposit growth, though net interest margin compression is weighing on sentiment.
• Analysts remain cautious: Weiss Ratings, Zacks Research, and Wall Street Zen all issued or reiterated sell-type ratings, giving HDFC Bank an overall average rating of “Sell.”

DJE Kapital AG reduced its position in shares of HDFC Bank Limited (NYSE:HDB - Free Report) by 84.5% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 262,531 shares of the bank's stock after selling 1,430,222 shares during the period. DJE Kapital AG's holdings in HDFC Bank were worth $6,461,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also made changes to their positions in HDB. Larson Financial Group LLC increased its stake in HDFC Bank by 90.4% during the 3rd quarter. Larson Financial Group LLC now owns 849 shares of the bank's stock worth $29,000 after buying an additional 403 shares during the period. Bell Investment Advisors Inc boosted its position in HDFC Bank by 260.9% in 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 last quarter. Pin Oak Investment Advisors Inc. boosted its position in HDFC Bank by 100.0% in the 3rd quarter. Pin Oak Investment Advisors Inc. now owns 996 shares of the bank's stock valued at $34,000 after buying an additional 498 shares during the last quarter. Caitong International Asset Management Co. Ltd acquired a new stake in shares of HDFC Bank during the third quarter valued at about $43,000. Finally, BOCHK Asset Management Ltd grew its stake in shares of HDFC Bank by 125.0% during the fourth quarter. BOCHK Asset Management Ltd now owns 1,800 shares of the bank's stock valued at $66,000 after acquiring an additional 1,000 shares in the last quarter. 17.61% of the stock is currently owned by hedge funds and other institutional investors.

HDFC Bank Price Performance

NYSE HDB opened at $23.56 on Tuesday. HDFC Bank Limited has a 12 month low of $22.91 and a 12 month high of $39.81. The company has a market capitalization of $120.21 billion, a price-to-earnings ratio of 14.11, a price-to-earnings-growth ratio of 1.23 and a beta of 0.64. The company's fifty day moving average price is $24.91 and its two-hundred day moving average price is $28.01.

HDFC Bank (NYSE:HDB - Get Free Report) last announced its quarterly earnings data on Monday, July 20th. The bank reported $0.39 earnings per share for the quarter, missing the consensus estimate of $0.40 by ($0.01). The company had revenue of $9.01 billion for the quarter, compared to analyst estimates of $5.06 billion. HDFC Bank had a return on equity of 12.96% and a net margin of 15.30%. As a group, analysts anticipate that HDFC Bank Limited will post 1.69 EPS for the current year.

Analyst Ratings Changes

Several research firms recently commented on HDB. Weiss Ratings reiterated a "sell (d+)" rating on shares of HDFC Bank in a research note on Wednesday, June 3rd. Zacks Research lowered HDFC Bank from a "hold" rating to a "strong sell" rating in a research note on Thursday, June 18th. Finally, Wall Street Zen downgraded HDFC Bank from a "hold" rating to a "sell" rating in a report on Saturday. Two equities research analysts have rated the stock with a Sell rating, According to data from MarketBeat.com, the company currently has an average rating of "Sell".

Insider Activity

In other HDFC Bank news, insider N Srinivasan sold 10,000 shares of the company's stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $8.72, for a total transaction of $87,200.00. Following the sale, the insider owned 638,422 shares in the company, valued at $5,567,039.84. This represents a 1.54% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, insider Ashish Parthasarthy sold 5,600 shares of the company's stock in a transaction that occurred on Tuesday, April 28th. The shares were sold at an average price of $8.70, for a total value of $48,720.00. Following the sale, the insider owned 842,958 shares in the company, valued at $7,333,734.60. The trade was a 0.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 1.00% of the company's stock.

Key Stories Impacting HDFC Bank

Here are the key news stories impacting HDFC Bank this week:

• Positive Sentiment: HDFC Bank reported quarterly EPS of $0.39, slightly ahead of the $0.38 consensus estimate, and revenue of $9.01 billion versus expectations of $5.06 billion, which shows the bank still delivered a top- and bottom-line beat. Listen to Conference Call
• Positive Sentiment: Loan growth remained healthy at about 15.4% year over year and deposit growth was about 13.3%, indicating the core franchise is still expanding. HDFC Bank ADR Drops as Margin Compression Overshadows Quarterly Growth
• Neutral Sentiment: Management also reported a return on equity of 12.96% and a net margin of 15.30%, suggesting solid operating performance even as the market remains focused on the next quarter’s trend. HDFC Bank stock page
• Negative Sentiment: Despite the earnings beat, the stock is falling because net interest margin narrowed to about 3.26%, raising concerns that stronger balance-sheet growth is not translating into earnings as efficiently as expected. HDFC Bank ADR Drops as Margin Compression Overshadows Quarterly Growth
• Negative Sentiment: Market commentary also points to softer core income momentum and lower other income, which appears to be overshadowing the bank’s otherwise solid quarterly growth. Why did HDFC Bank ADR tanked nearly 10% after stock crash in Dalal Street?

HDFC Bank 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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