HSBC Holdings plc $HSBC Shares Bought by Northwestern Mutual Wealth Management Co.

Key Points

• Northwestern Mutual Wealth Management massively increased its HSBC stake in the fourth quarter, boosting holdings by 1,272.2% to 909,464 shares worth about $71.5 million.
• Several other institutional investors also raised their positions, while hedge funds and other institutions now own 1.48% of HSBC shares overall.
• HSBC reported quarterly earnings of $0.44 per share and declared a $0.50 quarterly dividend, equal to a $2.00 annualized payout and a 2.3% yield.

Northwestern Mutual Wealth Management Co. grew its stake in shares of HSBC Holdings plc (NYSE:HSBC - Free Report) by 1,272.2% during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 909,464 shares of the financial services provider's stock after purchasing an additional 843,186 shares during the quarter. Northwestern Mutual Wealth Management Co.'s holdings in HSBC were worth $71,548,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also modified their holdings of the business. Fisher Asset Management LLC grew its position in shares of HSBC by 2.1% during the third quarter. Fisher Asset Management LLC now owns 17,398,460 shares of the financial services provider's stock worth $1,234,943,000 after acquiring an additional 355,089 shares during the last quarter. Dimensional Fund Advisors LP grew its position in shares of HSBC by 1.8% during the third quarter. Dimensional Fund Advisors LP now owns 10,575,644 shares of the financial services provider's stock worth $750,659,000 after acquiring an additional 185,073 shares during the last quarter. Northern Trust Corp grew its position in shares of HSBC by 4.7% during the third quarter. Northern Trust Corp now owns 3,045,134 shares of the financial services provider's stock worth $216,144,000 after acquiring an additional 136,342 shares during the last quarter. American Century Companies Inc. grew its position in shares of HSBC by 14.7% during the third quarter. American Century Companies Inc. now owns 1,311,820 shares of the financial services provider's stock worth $93,113,000 after acquiring an additional 168,438 shares during the last quarter. Finally, Raymond James Financial Inc. grew its position in shares of HSBC by 34.6% during the third quarter. Raymond James Financial Inc. now owns 455,088 shares of the financial services provider's stock worth $32,302,000 after acquiring an additional 117,038 shares during the last quarter. 1.48% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other HSBC news, insider Daniel Scott Palomaki sold 23,123 shares of the firm'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 completion of the sale, the insider owned 4,973 shares of the company's stock, valued at approximately $90,061.03. This trade represents a 82.30% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.01% of the stock is currently owned by company insiders.

HSBC Stock Performance

NYSE:HSBC opened at $88.41 on Monday. The firm's fifty day moving average price is $86.37 and its 200 day moving average price is $81.83. HSBC Holdings plc has a 1-year low of $58.14 and a 1-year high of $94.79. The company has a debt-to-equity ratio of 0.52, a current ratio of 0.92 and a quick ratio of 0.92. The firm has a market cap of $303.84 billion, a price-to-earnings ratio of 14.49, a price-to-earnings-growth ratio of 0.89 and a beta of 0.56.

HSBC (NYSE:HSBC - Get Free Report) last posted its quarterly earnings data 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 firm had revenue of $19.13 billion for the quarter. On average, sell-side analysts expect that HSBC Holdings plc will post 8.51 EPS for the current year.

HSBC Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 26th. Investors of record on Friday, May 15th will be given a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date is Friday, May 15th. HSBC's dividend payout ratio (DPR) is 32.46%.

More HSBC News

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

A number of equities analysts have recently issued reports on HSBC shares. Royal Bank Of Canada restated a "sector perform" rating on shares of HSBC in a research report on Thursday. The Goldman Sachs Group started coverage on shares of HSBC in a research report on Thursday, March 26th. They set a "buy" rating on the stock. Zacks Research lowered shares of HSBC from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, May 5th. Weiss Ratings lowered shares of HSBC from a "hold (c+)" rating to a "hold (c)" rating in a research report on Wednesday, May 6th. Finally, BNP Paribas Exane lowered shares of HSBC from an "outperform" rating to a "neutral" rating in a research report on Tuesday, April 14th. Five equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat, HSBC presently has an average rating of "Hold" and a consensus target price of $63.00.

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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