HSBC Holdings plc (NYSE:HSBC) Receives Consensus Rating of "Moderate Buy" from Analysts

Key Points

• Analyst consensus: Ten analysts rate HSBC an average of "Moderate Buy" (six buys, three holds, one strong buy) with an average 12-month target price of $63.00.
• Dividend surge: HSBC raised its quarterly dividend to $2.25 (from $0.50), implying an annualized $9.00 payout and a ~9.9% yield with a payout ratio of 148.43%.
• Strategic moves and market metrics: HSBC is expanding its Tokenized Deposit Service to the U.S., advancing blockchain payments and strengthening commodities trading, while trading near $90.96 with a market cap of $312.45B and a P/E of 15.03.

Shares of HSBC Holdings plc (NYSE:HSBC - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the ten research firms that are presently covering the stock, MarketBeat reports. Three investment analysts have rated the stock with a hold rating, six have issued a buy rating and one has assigned a strong buy rating to the company. The average 12 month target price among brokers that have covered the stock in the last year is $63.00.

Several brokerages recently weighed in on HSBC. Zacks Research raised HSBC from a "hold" rating to a "strong-buy" rating in a research report on Monday, April 6th. The Goldman Sachs Group began coverage on HSBC in a research report on Thursday, March 26th. They issued a "buy" rating on the stock. Keefe, Bruyette & Woods raised HSBC from a "hold" rating to a "moderate buy" rating in a research report on Wednesday, December 17th. Citigroup reaffirmed a "buy" rating on shares of HSBC in a research report on Friday, January 9th. Finally, Morgan Stanley began coverage on HSBC in a research report on Wednesday, January 14th. They issued an "equal weight" rating on the stock.

Institutional Trading of HSBC

Several large investors have recently added to or reduced their stakes in HSBC. Morgan Stanley increased its holdings in HSBC by 15.3% in the 4th quarter. Morgan Stanley now owns 7,483,883 shares of the financial services provider's stock valued at $588,757,000 after purchasing an additional 993,473 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its holdings in HSBC by 1,272.2% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 909,464 shares of the financial services provider's stock valued at $71,548,000 after purchasing an additional 843,186 shares in the last quarter. Clearbridge Investments LLC increased its holdings in HSBC by 77.0% in the 4th quarter. Clearbridge Investments LLC now owns 1,443,716 shares of the financial services provider's stock valued at $113,577,000 after purchasing an additional 627,857 shares in the last quarter. Fisher Asset Management LLC increased its holdings in HSBC by 2.3% in the 4th quarter. Fisher Asset Management LLC now owns 17,800,748 shares of the financial services provider's stock valued at $1,400,385,000 after purchasing an additional 402,288 shares in the last quarter. Finally, Dimensional Fund Advisors LP increased its holdings in HSBC by 1.8% in the 3rd quarter. Dimensional Fund Advisors LP now owns 10,575,644 shares of the financial services provider's stock valued at $750,659,000 after purchasing an additional 185,073 shares in the last quarter. 1.48% of the stock is currently owned by institutional investors and hedge funds.

HSBC Trading Up 0.8%

Shares of HSBC stock opened at $90.96 on Tuesday. The company has a quick ratio of 0.87, a current ratio of 0.87 and a debt-to-equity ratio of 0.62. The firm has a market cap of $312.45 billion, a PE ratio of 15.03, a P/E/G ratio of 0.94 and a beta of 0.55. The business's fifty day moving average is $85.65 and its two-hundred day moving average is $78.43. HSBC has a fifty-two week low of $50.56 and a fifty-two week high of $94.79.

HSBC (NYSE:HSBC - Get Free Report) last issued its earnings results on Saturday, February 14th. The financial services provider reported $1.35 earnings per share for the quarter. The business had revenue of $17.70 billion for the quarter. HSBC had a return on equity of 13.10% and a net margin of 16.07%. Analysts anticipate that HSBC will post 6.66 earnings per share for the current year.

HSBC Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, April 30th. Investors of record on Friday, March 13th will be issued a $2.25 dividend. The ex-dividend date is Friday, March 13th. This represents a $9.00 annualized dividend and a yield of 9.9%. This is an increase from HSBC's previous quarterly dividend of $0.50. HSBC's payout ratio is currently 148.43%.

More HSBC News

Here are the key news stories impacting HSBC this week:

• Positive Sentiment: HSBC expanded its Tokenized Deposit Service (TDS) to the United States, enabling 24/7 real-time, blockchain-based bank deposit transfers for institutional clients — a meaningful commercial expansion of its digital cash/liquidity franchise that can drive fee revenue and strengthen client stickiness across a major market. HSBC Expands Tokenized Deposit Service to the United States
• Positive Sentiment: HSBC is advancing blockchain solutions for institutional payments, reinforcing the TDS message and highlighting investment in digital rails that can lower costs, accelerate cross-border flows and create competitive differentiation. HSBC: Advancing Blockchain for Institutional Payments
• Positive Sentiment: HSBC hired a senior metals trader from ICBC Standard Bank to lead its global metals trading business — a hire that strengthens its commodities franchise and trading revenue potential at a time of elevated metal market activity. Exclusive: HSBC hires ICBC Standard Bank trader to lead global metals trading, sources say
• Positive Sentiment: HSBC research team remains very bullish on equities and says geopolitical fears are overdone — a stance that may support trading and markets businesses and bolster investor sentiment around the bank’s advisory/trading outlook. HSBC remains ’max’ bullish on stocks, says geopolitical fears are overdone
• Neutral Sentiment: HSBC has been active as an equity research/coverage house (initiating coverage on renewable names), which supports fee generation but has limited direct impact on the bank’s core banking P&L. ACME Solar to Clean Max: HSBC sees up to 33% upside in key renewable stocks
• Neutral Sentiment: HSBC resolved technical/payment issues with PayPal in at least one market — a positive operational fix but largely a one-off customer/operations item rather than a material earnings driver. HSBC resolves PayPal issues
• Negative Sentiment: A senior Dubai-based bond banker has left HSBC for Bank of America, the second recent departure in that market — an example of staff turnover in investment banking that could pressure relationship continuity and revenue in fixed income syndication/markets if it continues. HSBC Said to Lose Second Dubai Bond Banker to Wall Street Rival

About HSBC

HSBC Holdings plc NYSE: HSBC is a multinational banking and financial services organization headquartered in London. It traces its origins to the Hongkong and Shanghai Banking Corporation, founded in 1865 to facilitate trade between Europe and Asia, and has since grown into one of the world's largest banking groups. The company is publicly listed in multiple markets, including the London Stock Exchange, the Hong Kong Stock Exchange and as an American depositary receipt on the New York Stock Exchange.

HSBC operates a universal banking model, serving retail, commercial, corporate and institutional clients.

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