HDFC Bank (NYSE:HDB) Shares Up 3.8% - Still a Buy?

Key Points

• HDFC Bank's shares surged 3.8% recently, reaching a trading price of $36.78, despite a notable decrease in trading volume.
• Analysts have a consensus rating of "Moderate Buy" for HDFC Bank, with recent upgrades from Zacks Research and Wall Street Zen from "sell" to "hold."
• The bank recently declared a special dividend of $0.0854 per share, contributing to a high dividend yield of 101.0%.

Shares of HDFC Bank Limited (NYSE:HDB - Get Free Report) shot up 3.8% on Friday . The company traded as high as $36.62 and last traded at $36.78. 1,305,085 shares were traded during trading, a decline of 73% from the average session volume of 4,771,843 shares. The stock had previously closed at $35.44.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on HDB. Weiss Ratings reaffirmed a "hold (c)" rating on shares of HDFC Bank in a research report on Wednesday, October 8th. Zacks Research raised HDFC Bank from a "strong sell" rating to a "hold" rating in a research report on Monday, September 29th. Finally, Wall Street Zen raised HDFC Bank from a "sell" rating to a "hold" rating in a research report on Saturday, July 26th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, HDFC Bank has a consensus rating of "Moderate Buy".

HDFC Bank Stock Up 3.8%

The firm has a market capitalization of $187.71 billion, a PE ratio of 22.60, a PEG ratio of 1.91 and a beta of 0.63. The stock has a 50-day moving average price of $35.57 and a 200 day moving average price of $36.36.

HDFC Bank (NYSE:HDB - Get Free Report) last posted its quarterly earnings data on Saturday, July 19th. The bank reported $0.37 EPS for the quarter, missing analysts' consensus estimates of $0.38 by ($0.01). The business 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%. As a group, equities analysts predict that HDFC Bank Limited will post 3.03 earnings per share for the current fiscal year.

HDFC Bank Announces Dividend

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

Institutional Investors Weigh In On HDFC Bank

Institutional investors and hedge funds have recently modified their holdings of the company. BNP Paribas Financial Markets raised its holdings 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 buying an additional 254,395 shares during the period. Acadian Asset Management LLC purchased a new stake in HDFC Bank during the 1st quarter worth about $19,366,000. Immersion Capital LLP purchased a new stake in HDFC Bank during the 1st quarter worth about $19,753,000. Raiffeisen Bank International AG increased its holdings in HDFC Bank by 21.3% during the 1st quarter. Raiffeisen Bank International AG now owns 193,223 shares of the bank's stock worth $12,778,000 after purchasing an additional 33,983 shares during the period. Finally, Eminence Capital LP increased its holdings 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 purchasing an additional 189,015 shares during the period. Hedge funds and other institutional investors own 17.61% of the company's stock.

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.

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