May Hill Capital LLC Boosts Stock Position in HSBC Holdings plc $HSBC

Key Points

• May Hill Capital LLC more than doubled its HSBC stake in the fourth quarter, increasing holdings by 105.9% to 23,424 shares worth about $1.84 million.
• HSBC reported quarterly EPS of $0.44 on revenue of $19.13 billion, and analysts expect the company to post 8.51 EPS for the full year.
• The bank declared a quarterly dividend of $0.50 per share, but its payout ratio is high at 147.21%; meanwhile, HSBC is also facing scrutiny over a reported pause in a $4 billion private credit investment after a recent loss tied to market turmoil.

May Hill Capital LLC raised its stake in HSBC Holdings plc (NYSE:HSBC - Free Report) by 105.9% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 23,424 shares of the financial services provider's stock after purchasing an additional 12,047 shares during the period. May Hill Capital LLC's holdings in HSBC were worth $1,843,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors and hedge funds also recently added to or reduced their stakes in HSBC. Wedbush Securities Inc. grew its stake in shares of HSBC by 101.3% during the third quarter. Wedbush Securities Inc. now owns 26,822 shares of the financial services provider's stock worth $1,904,000 after acquiring an additional 13,495 shares during the last quarter. Foresight Global Investors Inc. purchased a new stake in shares of HSBC during the third quarter worth about $12,810,000. American Century Companies Inc. grew its stake 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. Y Intercept Hong Kong Ltd grew its stake in shares of HSBC by 63.4% during the third quarter. Y Intercept Hong Kong Ltd now owns 49,410 shares of the financial services provider's stock worth $3,507,000 after acquiring an additional 19,176 shares during the last quarter. Finally, Dynasty Wealth Management LLC purchased a new stake in shares of HSBC during the third quarter worth about $1,563,000. Hedge funds and other institutional investors own 1.48% of the company's stock.

HSBC Stock Performance

HSBC opened at $88.41 on Friday. HSBC Holdings plc has a 12-month low of $58.14 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 capitalization of $303.84 billion, a PE ratio of 14.49, a P/E/G ratio of 0.89 and a beta of 0.56. The firm has a 50 day moving average of $86.37 and a two-hundred day moving average of $81.73.

HSBC (NYSE:HSBC - Get Free Report) last posted its quarterly earnings results on Tuesday, March 31st. The financial services provider reported $0.44 earnings per share (EPS) 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, analysts anticipate that HSBC Holdings plc will post 8.51 EPS for the current year.

HSBC Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Friday, May 15th will be given 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 dividend payout ratio is currently 147.21%.

Insider Buying and Selling

In other HSBC news, insider Daniel Scott Palomaki sold 23,123 shares of the company's stock in a transaction that occurred 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. This represents a 82.30% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Corporate insiders own 0.01% of the company's stock.

Key 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

Wall Street Analyst Weigh In

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