HSBC (NYSE:HSBC) Downgraded by Zacks Research to "Hold"

Key Points

• Zacks Research downgraded HSBC from "strong‑buy" to "hold"; analyst coverage is mixed (five Buy, five Hold) with an average rating of "Moderate Buy" and a consensus price target of $63.
• HSBC's Q1 results beat on revenue and management raised 2026 banking NII guidance and declared an interim dividend of $0.50 per share, but the quarter included a $400m expected credit loss tied to alleged private‑credit fraud and a profit miss due to higher provisions.
• Shares opened around $91.34 (market cap ≈ $314.9B) and trade well above the consensus $63 target, with a P/E of about 15 and prices above both the 50‑ and 200‑day moving averages.

HSBC (NYSE:HSBC - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report issued on Tuesday,Zacks.com reports.

Several other research analysts have also recently weighed in on the company. The Goldman Sachs Group started coverage on HSBC in a research note on Thursday, March 26th. They issued a "buy" rating for the company. Weiss Ratings cut HSBC from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, April 10th. Citigroup restated a "buy" rating on shares of HSBC in a research note on Friday, January 9th. Morgan Stanley started coverage on HSBC in a research note on Wednesday, January 14th. They issued an "equal weight" rating for the company. Finally, BNP Paribas Exane cut HSBC from an "outperform" rating to a "neutral" rating in a research note on Tuesday, April 14th. Five equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat.com, HSBC has an average rating of "Moderate Buy" and a consensus price target of $63.00.

HSBC Stock Up 4.5%

Shares of NYSE:HSBC opened at $91.34 on Tuesday. The stock has a fifty day simple moving average of $86.42 and a two-hundred day simple moving average of $80.67. The stock has a market capitalization of $313.90 billion, a price-to-earnings ratio of 14.97, a PEG ratio of 0.84 and a beta of 0.56. HSBC has a 12-month low of $56.21 and a 12-month high of $94.79. The company has a current ratio of 0.87, a quick ratio of 0.87 and a debt-to-equity ratio of 0.62.

HSBC (NYSE:HSBC - Get Free Report) last announced its quarterly earnings data on Tuesday, March 31st. The financial services provider reported $0.44 earnings per share (EPS) for the quarter. The business had revenue of $19.13 billion during the quarter. HSBC had a return on equity of 13.28% and a net margin of 16.06%. On average, research analysts anticipate that HSBC will post 8.48 earnings per share for the current fiscal year.

Institutional Trading of HSBC

Several large investors have recently modified their holdings of the company. Cornerstone Planning Group LLC grew its holdings in shares of HSBC by 30.7% in the fourth quarter. Cornerstone Planning Group LLC now owns 498 shares of the financial services provider's stock worth $43,000 after acquiring an additional 117 shares during the period. Westover Capital Advisors LLC grew its holdings in shares of HSBC by 1.3% in the first quarter. Westover Capital Advisors LLC now owns 9,313 shares of the financial services provider's stock worth $768,000 after acquiring an additional 120 shares during the period. Lester Murray Antman dba SimplyRich grew its holdings in shares of HSBC by 1.0% in the fourth quarter. Lester Murray Antman dba SimplyRich now owns 12,445 shares of the financial services provider's stock worth $979,000 after acquiring an additional 123 shares during the period. Ellevest Inc. grew its holdings in shares of HSBC by 0.7% in the fourth quarter. Ellevest Inc. now owns 18,219 shares of the financial services provider's stock worth $1,433,000 after acquiring an additional 131 shares during the period. Finally, Federation des caisses Desjardins du Quebec grew its holdings in shares of HSBC by 5.3% in the fourth quarter. Federation des caisses Desjardins du Quebec now owns 2,658 shares of the financial services provider's stock worth $209,000 after acquiring an additional 133 shares during the period. Institutional investors own 1.48% of the company's stock.

More HSBC News

Here are the key news stories impacting HSBC this week:

• Positive Sentiment: HSBC declared an interim dividend of $0.50 per share (annualized yield ~2.2%), ex‑dividend May 15 and payable June 26 — a cash return that supports investor income expectations.
• Positive Sentiment: Revenue and net interest income outlook: Q1 revenue beat consensus and management lifted 2026 banking NII guidance, giving investors confidence in core earnings power despite one‑off charges. Quarterly results slide deck
• Positive Sentiment: At least one major sell‑side analyst (Bank of America) maintained a Buy and highlighted valuation upside after the resilient Q1 performance and upgraded NII view, which can underpin near‑term buying interest. Analyst Maintains Buy Rating
• Neutral Sentiment: Board & governance refresh: HSBC announced board and committee changes as part of a governance refresh — a routine but notable step for institutional investors monitoring oversight and succession. HSBC reshapes board and committee leadership
• Negative Sentiment: $400m private‑credit loss: HSBC took a $400m expected credit loss in Q1 tied to alleged fraud in a UK private‑lending chain (Market Financial Solutions exposure via SPVs). The episode raises concerns about opaque private‑credit links and potential for further surprise provisions. The Opaque Private‑Lending Deals That Left HSBC With a $400 Million Hole HSBC Loses $400 Million to Private Credit Fraud
• Negative Sentiment: Quarterly profit miss and higher provisions: Q1 pre‑tax profit missed estimates as conflict‑related and UK exposures pushed up credit charges; that pressure triggered earlier volatility and a near‑term drag on sentiment. HSBC reports flat first‑quarter profit, misses estimates

HSBC Company Profile

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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