Sanders Capital LLC Sells 788,323 Shares of HSBC Holdings plc $HSBC

Key Points

• Sanders Capital cut its HSBC stake by 29.9%, selling 788,323 shares and retaining 1.84 million shares valued at about $183.1 million.
• HSBC’s latest quarterly results fell short of expectations: EPS was $2.10 versus a $2.20 consensus, while revenue was $18.68 billion versus $18.98 billion expected.
• HSBC declared a quarterly dividend of $0.50 per share, equivalent to a 2.3% annualized yield. Analysts’ consensus rating was Hold, with an average price target of $97.

Sanders Capital LLC lowered its holdings in HSBC Holdings plc (NYSE:HSBC - Free Report) by 29.9% during the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 1,844,107 shares of the financial services provider's stock after selling 788,323 shares during the period. Sanders Capital LLC owned about 0.05% of HSBC worth $183,138,000 as of its most recent SEC filing.

Other institutional investors have also recently bought and sold shares of the company. Bank of America Corp DE boosted its position in shares of HSBC by 5.5% in the first quarter. Bank of America Corp DE now owns 2,385,883 shares of the financial services provider's stock valued at $196,811,000 after acquiring an additional 124,201 shares during the period. Royal Bank of Canada raised its holdings in shares of HSBC by 17.3% in the 1st quarter. Royal Bank of Canada now owns 1,304,192 shares of the financial services provider's stock valued at $107,582,000 after acquiring an additional 192,133 shares in the last quarter. Quantinno Capital Management LP raised its holdings in shares of HSBC by 20.9% in the 1st quarter. Quantinno Capital Management LP now owns 525,775 shares of the financial services provider's stock valued at $43,371,000 after acquiring an additional 90,711 shares in the last quarter. Renaissance Technologies LLC boosted its position in shares of HSBC by 391.6% during the 1st quarter. Renaissance Technologies LLC now owns 524,122 shares of the financial services provider's stock valued at $43,235,000 after acquiring an additional 417,500 shares during the last quarter. Finally, First Trust Advisors LP grew its holdings in shares of HSBC by 1.4% during the first quarter. First Trust Advisors LP now owns 500,505 shares of the financial services provider's stock worth $41,287,000 after purchasing an additional 6,891 shares in the last quarter. Institutional investors own 1.48% of the company's stock.

HSBC Stock Down 1.1%

Shares of NYSE HSBC traded down $0.97 on Friday, reaching $87.09. 1,758,892 shares of the company's stock traded hands, compared to its average volume of 2,037,306. The business's 50 day simple moving average is $96.78 and its two-hundred day simple moving average is $93.45. HSBC Holdings plc has a 12 month low of $67.56 and a 12 month high of $107.92. The company has a market cap of $298.58 billion, a price-to-earnings ratio of 11.31, a price-to-earnings-growth ratio of 0.94 and a beta of 0.56. The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 0.53.

HSBC (NYSE:HSBC - Get Free Report) last posted its quarterly earnings results on Tuesday, October 27th. The financial services provider reported $2.10 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.20 by ($0.10). The company had revenue of $18.68 billion during the quarter, compared to analysts' expectations of $18.98 billion. HSBC had a return on equity of 14.33% and a net margin of 19.59%. As a group, equities research analysts forecast that HSBC Holdings plc will post 8.41 EPS for the current fiscal year.

HSBC Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 17th. Shareholders of record on Friday, November 6th will be issued a dividend of $0.50 per share. The ex-dividend date of this dividend is Friday, November 6th. This represents a $2.00 dividend on an annualized basis and a yield of 2.3%. HSBC's dividend payout ratio (DPR) is currently 25.71%.

Key Headlines Impacting HSBC

Here are the key news stories impacting HSBC this week:

• Positive Sentiment: HSBC reported repurchasing about $65.9 million of its shares under its ongoing buyback, which modestly supports per-share value. HSBC Repurchases Shares in Ongoing US$65.9 Million Buyback
• Neutral Sentiment: The bank raised the maximum size of its cash tender offer for securities to $1.5 billion. This is a debt-management action, with no clear near-term effect on shareholder earnings. HSBC Raises Tender Offer Maximum to $1.5 Billion
• Neutral Sentiment: HSBC disclosed conditional share awards for employees. The announcement is a routine compensation item; the reported grant size appears small relative to the company. HSBC Grants Conditional Shares Under Employee Plan
• Negative Sentiment: An HSBC strategist warned that Anthropic’s expected IPO could trigger another market selloff, making it a potential test of investor appetite for highly valued AI-related stocks. A broader pullback could weigh on bank shares, though the warning is not specific to HSBC’s fundamentals. Anthropic’s IPO Could Trigger Another Selloff, HSBC Strategist Warns

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on HSBC. BNP Paribas Exane downgraded shares of HSBC from a "hold" rating to a "strong sell" rating and dropped their price objective for the stock from $100.50 to $97.00 in a report on Tuesday, August 4th. Erste Group Bank cut HSBC from a "buy" rating to a "hold" rating in a research note on Wednesday, July 15th. Citigroup restated a "neutral" rating on shares of HSBC in a research report on Wednesday, October 28th. JPMorgan Chase & Co. reaffirmed a "neutral" rating on shares of HSBC in a research note on Thursday, August 6th. Finally, Weiss Ratings upgraded HSBC from a "hold (c)" rating to a "buy (b-)" rating in a report on Wednesday, October 28th. Four equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $97.00.

About HSBC

HSBC Holdings plc is a global banking and financial services company serving individuals, businesses, institutions and governments. Its services include personal and commercial banking, wealth management, private banking, and corporate and investment banking.

The company provides products such as deposit accounts, lending, payments, trade finance, foreign exchange and investment services. Its international network supports clients with cross-border banking and financial needs.

HSBC traces its origins to the Hongkong and Shanghai Banking Corporation, founded in 1865 to finance trade in Asia.

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