Short Interest in HDFC Bank Limited (NYSE:HDB) Decreases By 28.4%

Key Points

• HDFC Bank's short interest decreased by 28.4% in August, dropping from 12,080,000 shares to 8,650,000 shares, resulting in a short-interest ratio of 4.4 days.
• Institutional investors have shown significant interest, with Bank Pictet & Cie Europe AG increasing its holdings by 451.3% during the fourth quarter.
• HDFC Bank recently announced a special dividend of $0.1707 per share, reflecting a yield of 101.0%, with a payout ratio of 19.63%.

HDFC Bank Limited (NYSE:HDB - Get Free Report) was the target of a large decrease in short interest in the month of August. As of August 15th, there was short interest totaling 8,650,000 shares, a decrease of 28.4% from the July 31st total of 12,080,000 shares. Based on an average daily trading volume, of 1,970,000 shares, the days-to-cover ratio is currently 4.4 days. Based on an average daily trading volume, of 1,970,000 shares, the days-to-cover ratio is currently 4.4 days.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on HDB. Wall Street Zen raised HDFC Bank from a "sell" rating to a "hold" rating in a research note on Saturday, July 26th. Zacks Research cut HDFC Bank from a "hold" rating to a "strong sell" rating in a research report on Friday, August 29th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy".

HDFC Bank Stock Performance

Shares of HDB traded down $0.32 during trading hours on Friday, hitting $35.07. 1,774,980 shares of the stock were exchanged, compared to its average volume of 3,230,603. The stock's 50-day moving average price is $37.24 and its two-hundred day moving average price is $35.79. The company has a market cap of $178.91 billion, a price-to-earnings ratio of 21.52, a price-to-earnings-growth ratio of 1.82 and a beta of 0.63. HDFC Bank has a 12-month low of $28.89 and a 12-month high of $39.81.

HDFC Bank (NYSE:HDB - Get Free Report) last issued its earnings results on Saturday, July 19th. The bank reported $0.37 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.38 by ($0.01). The company had revenue of $5.10 billion during the quarter, compared to analysts' expectations of $5.03 billion. HDFC Bank had a net margin of 14.49% and a return on equity of 11.60%. On average, research analysts expect that HDFC Bank will post 3.03 earnings per share for the current year.

HDFC Bank Dividend Announcement

The business also recently announced a special dividend, which was paid on Wednesday, August 20th. Shareholders of record on Thursday, July 31st were issued a $0.0854 dividend. This represents a yield of 101.0%. The ex-dividend date was Thursday, July 31st. HDFC Bank's dividend payout ratio is presently 19.63%.

Institutional Trading of HDFC Bank

Large investors have recently added to or reduced their stakes in the stock. BNP Paribas Financial Markets lifted its stake in shares of HDFC Bank by 81.0% in the 1st quarter. BNP Paribas Financial Markets now owns 568,407 shares of the bank's stock valued at $37,765,000 after purchasing an additional 254,395 shares during the last quarter. Raiffeisen Bank International AG lifted its stake in shares of HDFC Bank by 21.3% in the 1st quarter. Raiffeisen Bank International AG now owns 193,223 shares of the bank's stock valued at $12,778,000 after purchasing an additional 33,983 shares during the last quarter. Immersion Capital LLP acquired a new position in shares of HDFC Bank in the 1st quarter valued at $19,753,000. Eminence Capital LP lifted its stake in HDFC Bank by 18.9% during the 1st quarter. Eminence Capital LP now owns 1,186,551 shares of the bank's stock worth $78,834,000 after acquiring an additional 189,015 shares in the last quarter. Finally, Natixis Advisors LLC lifted its stake in HDFC Bank by 20.6% during the 1st quarter. Natixis Advisors LLC now owns 2,238,560 shares of the bank's stock worth $148,730,000 after acquiring an additional 382,267 shares in the last quarter. 17.61% of the stock is currently owned by hedge funds and other institutional investors.

About HDFC Bank

HDFC Bank Limited provides banking and financial services to individuals and businesses in India, Bahrain, Hong Kong, and Dubai. The company operates in three segments: Wholesale Banking, Retail Banking, and Treasury Services. It accepts savings, salary, current, rural, public provident fund, pension, and demat accounts; fixed and recurring deposits; and safe deposit lockers, as well as offshore accounts and deposits, and overdrafts against fixed deposits.