HDFC Bank (NYSE:HDB) Issues Earnings Results, Beats Estimates By $0.01 EPS

Key Points

• HDFC Bank reported quarterly EPS of $0.39, topping the consensus estimate by $0.01. Revenue also came in well above expectations at $9.01 billion versus analysts’ forecast of $5.06 billion.
• The bank posted a return on equity of 12.96% and a net margin of 15.30%, indicating solid profitability for the quarter.
• Despite the earnings beat, HDB shares fell during Monday trading, and recent analyst sentiment remains cautious with an overall average rating of “Sell”.

HDFC Bank (NYSE:HDB - Get Free Report) posted its earnings results on Monday. The bank reported $0.39 EPS for the quarter, beating the consensus estimate of $0.38 by $0.01, reports. The firm had revenue of $9.01 billion for the quarter, compared to analysts' expectations of $5.06 billion. HDFC Bank had a return on equity of 12.96% and a net margin of 15.30%.

HDFC Bank Price Performance

HDB stock traded down $2.39 during mid-day trading on Monday, reaching $23.99. The company had a trading volume of 11,363,380 shares, compared to its average volume of 8,690,412. The company has a market capitalization of $122.40 billion, a price-to-earnings ratio of 14.40, a PEG ratio of 1.23 and a beta of 0.64. HDFC Bank has a 52 week low of $22.91 and a 52 week high of $39.81. The stock has a 50 day simple moving average of $24.92 and a two-hundred day simple moving average of $28.10.

Insider Buying and Selling

In other HDFC Bank news, insider Ashish Parthasarthy sold 5,600 shares of the stock in a transaction that occurred on Tuesday, April 28th. The shares were sold at an average price of $8.70, for a total transaction of $48,720.00. Following the transaction, the insider owned 842,958 shares in the company, valued at $7,333,734.60. This represents a 0.66% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider N Srinivasan sold 10,000 shares of HDFC Bank stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $8.72, for a total value of $87,200.00. Following the completion of the transaction, the insider directly owned 638,422 shares of the company's stock, valued at $5,567,039.84. This represents a 1.54% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 21,600 shares of company stock valued at $189,560. Insiders own 1.00% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in HDB. Larson Financial Group LLC lifted its position in shares of HDFC Bank by 90.4% during the 3rd quarter. Larson Financial Group LLC now owns 849 shares of the bank's stock worth $29,000 after buying an additional 403 shares during the last quarter. Pin Oak Investment Advisors Inc. lifted its stake in shares of HDFC Bank by 100.0% in the third quarter. Pin Oak Investment Advisors Inc. now owns 996 shares of the bank's stock worth $34,000 after acquiring an additional 498 shares during the period. Caitong International Asset Management Co. Ltd bought a new stake in shares of HDFC Bank in the 3rd quarter valued at $43,000. Cary Street Partners Financial LLC acquired a new stake in HDFC Bank during the 2nd quarter worth about $75,000. Finally, Inspire Investing LLC bought a new stake in HDFC Bank in the fourth quarter worth approximately $85,000. 17.61% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several analysts recently commented on HDB shares. Weiss Ratings restated a "sell (d+)" rating on shares of HDFC Bank in a report on Wednesday, June 3rd. Zacks Research lowered HDFC Bank from a "hold" rating to a "strong sell" rating in a report on Thursday, June 18th. Finally, Wall Street Zen lowered HDFC Bank from a "hold" rating to a "sell" rating in a research report on Saturday. Two analysts have rated the stock with a Sell rating, According to MarketBeat.com, the company currently has an average rating of "Sell".

About HDFC Bank

HDFC Bank Limited is one of India's leading private sector banks, headquartered in Mumbai. Incorporated in 1994 and promoted by Housing Development Finance Corporation (HDFC), the bank provides a full range of banking and financial services to retail, small and medium-sized enterprises, and corporate customers. It is publicly listed and also accessible to international investors through American Depositary Receipts (ADRs) trading on the New York Stock Exchange under the symbol HDB.

The bank's core activities include retail banking (deposit accounts, personal loans, home loans, auto loans, and credit cards), commercial and corporate banking (working capital finance, term lending, trade finance and treasury services), and transaction banking (cash management and payment solutions).

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