HDFC Bank (NYSE:HDB) Shares Gap Down - What's Next?

Key Points

• HDFC Bank shares gapped down sharply on Monday, opening at $24.76 after closing at $26.38 and later trading near $23.95, a drop of about 9.2%.
• Recent analyst action has been negative, with multiple firms downgrading the stock to sell or strong sell; MarketBeat says the current consensus rating is “Sell.”
• The bank still has a sizable market presence, with a $122.26 billion market cap, a 14.36 P/E ratio, and institutional investors holding about 17.61% of the shares.

Shares of HDFC Bank Limited (NYSE:HDB - Get Free Report) gapped down before the market opened on Monday . The stock had previously closed at $26.38, but opened at $24.76. HDFC Bank shares last traded at $23.9480, with a volume of 4,287,527 shares traded.

Analyst Ratings Changes

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

HDFC Bank Stock Down 9.2%

The company has a market cap of $122.26 billion, a P/E ratio of 14.36, a price-to-earnings-growth ratio of 1.23 and a beta of 0.64. The stock has a 50 day moving average price of $24.92 and a two-hundred day moving average price of $28.10.

Insiders Place Their Bets

In other news, insider N Srinivasan sold 10,000 shares of HDFC Bank stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $8.72, for a total transaction of $87,200.00. Following the completion of the sale, the insider owned 638,422 shares of the company's stock, valued at approximately $5,567,039.84. This trade represents a 1.54% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Ashish Parthasarthy sold 6,000 shares of HDFC Bank stock in a transaction on Tuesday, April 21st. The stock was sold at an average price of $8.94, for a total value of $53,640.00. Following the sale, the insider directly owned 848,558 shares of the company's stock, valued at $7,586,108.52. This represents a 0.70% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 21,600 shares of company stock worth $189,560. Insiders own 1.00% of the company's stock.

Hedge Funds Weigh In On HDFC Bank

Several institutional investors and hedge funds have recently modified their holdings of the business. Larson Financial Group LLC raised its stake in HDFC Bank by 90.4% in the 3rd quarter. Larson Financial Group LLC now owns 849 shares of the bank's stock worth $29,000 after purchasing an additional 403 shares in the last quarter. Cary Street Partners Financial LLC bought a new position in shares of HDFC Bank during the second quarter worth approximately $75,000. Pin Oak Investment Advisors Inc. increased its holdings in shares of HDFC Bank by 100.0% during the third quarter. Pin Oak Investment Advisors Inc. now owns 996 shares of the bank's stock worth $34,000 after purchasing an additional 498 shares during the period. Caitong International Asset Management Co. Ltd acquired a new stake in shares of HDFC Bank in the third quarter valued at approximately $43,000. Finally, Axiom Investment Management LLC acquired a new stake in shares of HDFC Bank in the first quarter valued at approximately $32,000. 17.61% of the stock is currently owned by institutional investors and hedge funds.

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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