HSBC (NYSE:HSBC) Downgraded to Hold Rating by Citigroup

Key Points

• Citigroup downgraded HSBC from “strong buy” to “hold,” joining several analysts who have adopted neutral ratings. MarketBeat’s consensus is “Hold,” with three Buy, eight Hold and one Sell rating.
• HSBC shares opened at $102.63, down 3.2%, after a strong advance; the stock remains near its 52-week high of $107.92 and trades at a price-to-earnings ratio of 14.56.
• The bank slightly exceeded quarterly expectations, reporting $2.25 in EPS versus the $2.24 consensus and revenue of $19.04 billion against estimates of $18.66 billion, though investors remain focused on credit risks and capital levels.

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

A number of other equities analysts also recently issued reports on the company. Zacks Research downgraded HSBC from a "strong-buy" rating to a "hold" rating in a report on Tuesday, May 5th. Erste Group Bank downgraded shares of HSBC from a "buy" rating to a "hold" rating in a research report on Wednesday, July 15th. Royal Bank Of Canada restated a "sector perform" rating on shares of HSBC in a report on Thursday, May 14th. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating on shares of HSBC in a research report on Tuesday, June 23rd. Finally, BNP Paribas Exane cut shares of HSBC from an "outperform" rating to a "neutral" rating in a research report on Tuesday, April 14th. Three research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold".

HSBC Stock Down 3.2%

Shares of NYSE HSBC opened at $102.63 on Tuesday. The business has a 50-day moving average of $97.34 and a two-hundred day moving average of $90.82. The company has a market capitalization of $352.72 billion, a price-to-earnings ratio of 14.56, a price-to-earnings-growth ratio of 0.94 and a beta of 0.57. HSBC has a 1 year low of $62.43 and a 1 year high of $107.92. The company has a debt-to-equity ratio of 0.52, a current ratio of 0.92 and a quick ratio of 0.92.

HSBC (NYSE:HSBC - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The financial services provider reported $2.25 EPS for the quarter, beating analysts' consensus estimates of $2.24 by $0.01. The business had revenue of $19.04 billion for the quarter, compared to the consensus estimate of $18.66 billion. HSBC had a return on equity of 13.74% and a net margin of 18.19%. On average, analysts forecast that HSBC will post 8.64 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of HSBC. Cornerstone Planning Group LLC raised its stake in HSBC by 30.7% during 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 lifted its holdings in shares of HSBC by 1.3% in the 1st quarter. Westover Capital Advisors LLC now owns 9,313 shares of the financial services provider's stock worth $768,000 after purchasing an additional 120 shares during the last quarter. Lester Murray Antman dba SimplyRich grew its stake in HSBC by 1.0% during the 4th quarter. Lester Murray Antman dba SimplyRich now owns 12,445 shares of the financial services provider's stock worth $979,000 after buying an additional 123 shares during the last quarter. Ellevest Inc. lifted its stake in HSBC by 0.7% in the fourth quarter. Ellevest Inc. now owns 18,219 shares of the financial services provider's stock valued at $1,433,000 after buying an additional 131 shares during the last quarter. Finally, Federation des caisses Desjardins du Quebec grew its position in shares of HSBC by 5.3% during 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 last quarter. 1.48% of the stock is owned by hedge funds and other institutional investors.

More HSBC News

Here are the key news stories impacting HSBC this week:

• Positive Sentiment: HSBC expanded its debt tender offer and increased the maximum amount allocated to repurchasing certain senior notes, including the May 2028 notes. The move could improve funding efficiency and reduce outstanding debt. HSBC Expands Debt Tender Offer and Raises May 2028 Notes Cap
• Positive Sentiment: HSBC’s second-quarter results showed strong momentum: pre-tax profit rose about 60% year over year to $10.1 billion, supported by higher revenue, lower costs and improved credit impairments. The bank also raised its 2026 banking net-interest-income outlook. HSBC Q2 Pre-Tax Earnings Improve Year over Year
• Positive Sentiment: The company declared a quarterly dividend of $0.50 per share, payable September 25 to shareholders of record August 14. HSBC also plans to resume share buybacks of up to $1 billion, reinforcing its capital-return program. HSBC Resumes Share Buybacks on Earnings Beat
• Neutral Sentiment: HSBC identified 10 Indian stocks, including ICICI Bank, Titan, M&M and Adani Ports, that it expects to benefit from potential foreign-equity inflows of up to $25 billion into India. The recommendations highlight HSBC’s research and regional franchise, but do not directly change HSBC’s earnings outlook. HSBC India Stock Picks
• Negative Sentiment: Investors focused on elevated expected credit losses, including exposures tied to UK fraud and Hong Kong commercial real estate, while HSBC’s CET1 ratio declined to 14.1%. Some investors also viewed the $1 billion buyback as modest relative to the stock’s recent rally. HSBC Credit Risk and Capital Questions
• Negative Sentiment: Citi downgraded HSBC to “neutral” from “buy,” arguing that the shares may need to consolidate after their sharp advance. The bank trades at approximately 11 times forward earnings and 2.2 times tangible book value, limiting near-term upside in Citi’s view. Citi Downgrades HSBC to Neutral
• Negative Sentiment: Reports that China is taxing returns from offshore insurance policies triggered a broader sell-off in Asia-focused financial stocks, including HSBC, on concern that the policy could weaken demand from mainland customers. China Closes Offshore Tax Loophole

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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