HDFC Bank (NYSE:HDB) Stock Price Down 5.9% - What's Next?

Key Points

• Shares fell 5.9% intraday to as low as $34.35 (last at $34.31) on Monday with volume ~6.38M shares, about 38% above the average daily volume, following a prior close of $36.48.
• Analyst views are mixed after recent research note changes—Wall Street Zen cut to a "sell" while Zacks moved to "hold"—but the MarketBeat consensus remains a "Moderate Buy".
• Institutional investors have been aggressively adding to positions (big increases by Schroder, JPMorgan, Franklin, Wellington and Invesco), and the bank reported a quarterly earnings beat ($0.44 vs. $0.36) with revenue of $8.08B, supporting a market cap of ~$174.4B and a P/E of 20.78.

Shares of HDFC Bank Limited (NYSE:HDB - Get Free Report) were down 5.9% during trading on Monday . The company traded as low as $34.35 and last traded at $34.3140. Approximately 6,380,369 shares traded hands during mid-day trading, an increase of 38% from the average daily volume of 4,639,095 shares. The stock had previously closed at $36.48.

Analyst Ratings Changes

Several research analysts have commented on HDB shares. Wall Street Zen lowered HDFC Bank from a "hold" rating to a "sell" rating in a research report on Saturday. Zacks Research upgraded HDFC Bank from a "strong sell" rating to a "hold" rating in a report on Monday, September 29th. Finally, Weiss Ratings restated a "hold (c-)" rating on shares of HDFC Bank in a report on Monday, December 29th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy".

HDFC Bank Stock Performance

The firm has a market capitalization of $174.39 billion, a P/E ratio of 20.78, a P/E/G ratio of 1.64 and a beta of 0.57. The stock has a fifty day moving average price of $36.21 and a two-hundred day moving average price of $36.51.

HDFC Bank (NYSE:HDB - Get Free Report) last released its earnings results on Saturday, October 18th. The bank reported $0.44 earnings per share for the quarter, beating the consensus estimate of $0.36 by $0.08. HDFC Bank had a net margin of 14.94% and a return on equity of 11.49%. The firm had revenue of $8.08 billion during the quarter, compared to analyst estimates of $4.98 billion. As a group, research analysts anticipate that HDFC Bank Limited will post 3.03 earnings per share for the current fiscal year.

Institutional Trading of HDFC Bank

Institutional investors and hedge funds have recently made changes to their positions in the stock. Schroder Investment Management Group boosted its position in HDFC Bank by 137.6% during the 3rd quarter. Schroder Investment Management Group now owns 25,221,130 shares of the bank's stock valued at $861,554,000 after purchasing an additional 14,606,422 shares during the period. JPMorgan Chase & Co. lifted its stake in HDFC Bank by 104.4% in the third quarter. JPMorgan Chase & Co. now owns 19,204,783 shares of the bank's stock valued at $656,035,000 after buying an additional 9,808,890 shares during the last quarter. Franklin Resources Inc. lifted its stake in HDFC Bank by 106.1% in the third quarter. Franklin Resources Inc. now owns 13,884,943 shares of the bank's stock valued at $474,310,000 after buying an additional 7,147,440 shares during the last quarter. Wellington Management Group LLP boosted its holdings in shares of HDFC Bank by 94.3% during the third quarter. Wellington Management Group LLP now owns 13,155,196 shares of the bank's stock valued at $449,381,000 after acquiring an additional 6,386,002 shares during the period. Finally, Invesco Ltd. grew its position in shares of HDFC Bank by 98.3% during the third quarter. Invesco Ltd. now owns 12,338,006 shares of the bank's stock worth $421,466,000 after acquiring an additional 6,115,797 shares during the last quarter. 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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