HSBC Holdings plc $HSBC Shares Sold by AMJ Financial Wealth Management

Key Points

• AMJ Financial Wealth Management cut its HSBC stake by 72.9% in the fourth quarter, selling 86,589 shares and leaving it with 32,248 shares worth about $2.54 million.
• HSBC has also seen insider selling: executive Daniel Scott Palomaki sold 23,123 shares on May 7, reducing his position by 82.3%.
• Recent headlines around HSBC are focused on private credit risk, including reports that it paused a $4 billion investment after a $400 million hit tied to a Market Financial Solutions collapse, even as the bank later reaffirmed its commitment to the strategy.

AMJ Financial Wealth Management trimmed its position in HSBC Holdings plc (NYSE:HSBC - Free Report) by 72.9% in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 32,248 shares of the financial services provider's stock after selling 86,589 shares during the period. AMJ Financial Wealth Management's holdings in HSBC were worth $2,537,000 as of its most recent SEC filing.

Other institutional investors have also recently added to or reduced their stakes in the company. Measured Wealth Private Client Group LLC bought a new position in shares of HSBC in the third quarter valued at $26,000. Binnacle Investments Inc increased its holdings in shares of HSBC by 80.5% in the third quarter. Binnacle Investments Inc now owns 444 shares of the financial services provider's stock valued at $32,000 after buying an additional 198 shares in the last quarter. JPL Wealth Management LLC bought a new position in shares of HSBC in the third quarter valued at $41,000. Root Financial Partners LLC bought a new position in shares of HSBC in the third quarter valued at $43,000. Finally, Cornerstone Planning Group LLC increased its holdings in shares of HSBC by 30.7% in the fourth quarter. Cornerstone Planning Group LLC now owns 498 shares of the financial services provider's stock valued at $43,000 after buying an additional 117 shares in the last quarter. 1.48% of the stock is currently owned by institutional investors and hedge funds.

Insider Transactions at HSBC

In other news, insider Daniel Scott Palomaki sold 23,123 shares of HSBC stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $18.11, for a total value 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 trade represents a 82.30% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Insiders own 0.01% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on the company. The Goldman Sachs Group initiated coverage on HSBC in a report on Thursday, March 26th. They issued a "buy" rating on the stock. Weiss Ratings downgraded shares of HSBC from a "hold (c+)" rating to a "hold (c)" rating in a research note on Wednesday, May 6th. BNP Paribas Exane downgraded shares of HSBC from an "outperform" rating to a "neutral" rating in a research note on Tuesday, April 14th. Zacks Research downgraded shares of HSBC from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, May 5th. Finally, Royal Bank Of Canada reissued a "sector perform" rating on shares of HSBC in a research note on Thursday. Five research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $63.00.

Key Headlines Impacting HSBC

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

HSBC Price Performance

HSBC opened at $88.41 on Friday. HSBC Holdings plc has a one year low of $58.14 and a one 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 company's 50 day simple moving average is $86.37 and its 200-day simple moving average is $81.73. The stock has a market capitalization of $303.84 billion, a P/E ratio of 14.49, a price-to-earnings-growth ratio of 0.91 and a beta of 0.56.

HSBC (NYSE:HSBC - Get Free Report) last posted 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 for the quarter. Sell-side analysts anticipate that HSBC Holdings plc will post 8.51 earnings per share for the current fiscal year.

HSBC Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Friday, May 15th will be paid a $0.50 dividend. This represents a $2.00 annualized dividend and a yield of 2.3%. The ex-dividend date is Friday, May 15th. HSBC's payout ratio is presently 147.21%.

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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