HSBC Holdings plc $HSBC is ABC Arbitrage SA's 9th Largest Position

Key Points

• ABC Arbitrage SA increased its HSBC stake by 47.6% in the fourth quarter, buying 116,163 more shares and bringing its total to 360,332 shares worth about $28.3 million. HSBC is now the fund’s 9th largest holding, representing roughly 2.6% of its portfolio.
• HSBC reported solid recent operating results, including quarterly earnings of $0.44 per share on revenue of $19.13 billion, with a net margin of 16.06% and return on equity of 13.35%. Analysts expect the company to earn 8.51 per share for the full year.
• The company declared a $0.50 quarterly dividend payable June 26, implying a 2.2% annualized yield, though the payout ratio is high at 147.21%. HSBC also has a mixed analyst backdrop, with a consensus rating of “Moderate Buy” and a $63 average price target.

ABC Arbitrage SA boosted its stake in HSBC Holdings plc (NYSE:HSBC - Free Report) by 47.6% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 360,332 shares of the financial services provider's stock after buying an additional 116,163 shares during the quarter. HSBC makes up approximately 2.6% of ABC Arbitrage SA's portfolio, making the stock its 9th largest holding. ABC Arbitrage SA's holdings in HSBC were worth $28,347,000 at the end of the most recent reporting period.

A number of other hedge funds have also made changes to their positions in HSBC. Fisher Asset Management LLC lifted its holdings in HSBC by 2.1% in the 3rd quarter. Fisher Asset Management LLC now owns 17,398,460 shares of the financial services provider's stock valued at $1,234,943,000 after purchasing an additional 355,089 shares in the last quarter. Dimensional Fund Advisors LP grew its stake in HSBC by 1.8% during the 3rd quarter. Dimensional Fund Advisors LP now owns 10,575,644 shares of the financial services provider's stock valued at $750,659,000 after acquiring an additional 185,073 shares in the last quarter. Northern Trust Corp raised its holdings in HSBC by 4.7% in 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 last quarter. American Century Companies Inc. lifted its stake in HSBC by 14.7% in the 3rd quarter. American Century Companies Inc. now owns 1,311,820 shares of the financial services provider's stock worth $93,113,000 after purchasing an additional 168,438 shares in the last quarter. Finally, Raymond James Financial Inc. boosted its holdings in shares of HSBC by 34.6% during the 3rd quarter. Raymond James Financial Inc. now owns 455,088 shares of the financial services provider's stock worth $32,302,000 after purchasing an additional 117,038 shares during the last quarter. Institutional investors and hedge funds own 1.48% of the company's stock.

HSBC Stock Up 0.4%

Shares of HSBC opened at $90.49 on Tuesday. The company's 50-day moving average price is $86.28 and its 200 day moving average price is $81.18. HSBC Holdings plc has a 12-month low of $57.85 and a 12-month high of $94.79. 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 firm has a market cap of $310.99 billion, a P/E ratio of 14.83, a price-to-earnings-growth ratio of 0.91 and a beta of 0.56.

HSBC (NYSE:HSBC - Get Free Report) last announced its earnings results on Tuesday, March 31st. The financial services provider reported $0.44 earnings per share for the quarter. HSBC had a net margin of 16.06% and a return on equity of 13.35%. The company had revenue of $19.13 billion during the quarter. On average, sell-side analysts forecast that HSBC Holdings plc will post 8.51 earnings per share for the current year.

HSBC Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Friday, May 15th will be given a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a dividend yield of 2.2%. The ex-dividend date is Friday, May 15th. HSBC's dividend payout ratio (DPR) is currently 147.21%.

Analysts Set New Price Targets

Several research firms recently commented on HSBC. Morgan Stanley initiated coverage on HSBC in a report on Wednesday, January 14th. They issued an "equal weight" rating for the company. BNP Paribas Exane lowered HSBC from an "outperform" rating to a "neutral" rating in a report on Tuesday, April 14th. Weiss Ratings lowered shares of HSBC from a "hold (c+)" rating to a "hold (c)" rating in a report on Wednesday, May 6th. Zacks Research cut shares of HSBC from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, May 5th. Finally, The Goldman Sachs Group assumed coverage on shares of HSBC in a report on Thursday, March 26th. They issued a "buy" rating on the stock. Five investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $63.00.

Key Stories Impacting HSBC

Here are the key news stories impacting HSBC this week:

• Positive Sentiment: HSBC raised its 2026 S&P 500 target to 7,650 and said there is a path above 8,000, citing strong earnings momentum, resilient tech stocks, and AI-driven optimism. That bullish market outlook can support sentiment toward HSBC’s research franchise and broader capital-markets outlook. Article Title
• Positive Sentiment: HSBC also published upbeat views on select markets and companies, including a constructive note on PhysicsWallah and an integrated health and wellness launch in Singapore, which reinforce its active product and research pipeline. Article Title
• Neutral Sentiment: HSBC announced plans to issue US$1.5 billion of perpetual contingent convertible securities, which should strengthen capital resources but may also add dilution or financing-cost concerns for investors. Article Title
• Neutral Sentiment: The company also set out board line-up and committee roles under Hong Kong rules, a governance update that is unlikely to move the shares on its own. Article Title
• Negative Sentiment: HSBC is also reviewing a $400 million fraud-related provision, which raises the risk of an earnings hit if the issue is material. Article Title
• Negative Sentiment: Separately, an insider sale by Daniel Scott Palomaki may be viewed cautiously by investors, though the transaction size appears modest relative to HSBC’s market value. Article Title

Insider Buying and Selling at HSBC

In related news, insider Daniel Scott Palomaki sold 23,123 shares of the business's stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $18.11, for a total value of $418,757.53. Following the sale, the insider owned 4,973 shares in the company, valued at approximately $90,061.03. The trade was a 82.30% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 0.01% of the company's stock.

HSBC 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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