HSBC (NYSE:HSBC) Insider Sells $418,757.53 in Stock

Key Points

• HSBC insider Daniel Scott Palomaki sold 23,123 shares on May 7 at an average price of $18.11, totaling about $418,758. After the sale, his stake fell by 82.3% to 4,973 shares.
• HSBC recently reported quarterly earnings of $0.44 per share on revenue of $19.13 billion, with a net margin of 16.06% and return on equity of 13.35%. Analysts expect the company to earn 8.51 EPS for the full year.
• The bank cut its quarterly dividend to $0.50 per share, equal to a $2.00 annualized payout and a 2.2% yield. The payout ratio is high at 147.21%, while recent news also highlighted a $400 million fraud-related loss and ongoing investor/governance concerns.

HSBC Holdings plc (NYSE:HSBC - Get Free Report) insider Daniel Scott Palomaki sold 23,123 shares of HSBC stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $18.11, for a total transaction of $418,757.53. Following the sale, the insider owned 4,973 shares in the company, valued at approximately $90,061.03. This represents a 82.30% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink.

HSBC Price Performance

Shares of NYSE HSBC opened at $90.12 on Monday. HSBC Holdings plc has a fifty-two week low of $56.54 and a fifty-two week high of $94.79. The firm's 50-day simple moving average is $86.44 and its 200 day simple moving average is $80.83. The company has a quick ratio of 0.92, a current ratio of 0.92 and a debt-to-equity ratio of 0.52. The stock has a market cap of $309.72 billion, a P/E ratio of 14.77, a P/E/G ratio of 0.91 and a beta of 0.56.

HSBC (NYSE:HSBC - Get Free Report) last issued its quarterly earnings results on Tuesday, March 31st. The financial services provider reported $0.44 EPS for the quarter. HSBC had a net margin of 16.06% and a return on equity of 13.35%. The firm had revenue of $19.13 billion for the quarter. Equities analysts expect that HSBC Holdings plc will post 8.51 EPS for the current year.

HSBC Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Friday, May 15th will be given a $0.50 dividend. The ex-dividend date is Friday, May 15th. This represents a $2.00 annualized dividend and a yield of 2.2%. HSBC's payout ratio is 147.21%.

Key Stories Impacting HSBC

Here are the key news stories impacting HSBC this week:

• Positive Sentiment: HSBC announced further mortgage rate cuts of up to 0.30%, which could help sustain UK lending demand and support market share in a competitive mortgage market. HSBC announces further mortgage rate reductions of up to 0.30%
• Positive Sentiment: Erste Group raised its FY2027 EPS estimate for HSBC, reinforcing a constructive earnings outlook and suggesting analysts still see longer-term profit growth. Erste Group raises FY2027 EPS estimates for HSBC
• Positive Sentiment: HSBC said it sees AI-related upside for China software stocks despite global jitters, signaling ongoing interest in growth opportunities in Asia where the bank has major exposure. HSBC sees AI upside for China software stocks despite global jitters
• Positive Sentiment: At its AGM, HSBC investors backed board proposals and rejected activist resolutions, reducing near-term governance uncertainty for the bank. HSBC Investors Back Board Proposals and Reject Activist Resolutions at 2026 AGM
• Neutral Sentiment: HSBC was highlighted as a strong value and momentum stock by Zacks, which may support investor sentiment but does not change fundamentals by itself. Here's Why HSBC (HSBC) is a Strong Value Stock
• Neutral Sentiment: HSBC said it has substantially completed a review of lending policies after the $400 million fraud-related provision, which may reassure investors on risk controls but also underscores the scope of the issue. HSBC has reviewed lending policies after $400 million fraud provision, chairman says
• Negative Sentiment: Reuters reported that HSBC was hit by an unexpectedly large $400 million loss tied to a fraud case involving a UK mortgage lender, creating a clear earnings overhang and renewing concern about private-credit risk. Private credit roundup: HSBC's big loss and an FSB warning
• Negative Sentiment: Shareholders also pushed back against the chair at the AGM amid climate-related concerns, adding another source of governance pressure. HSBC sees shareholder pushback against chair at AGM amid climate action concerns

Hedge Funds Weigh In On HSBC

Several institutional investors and hedge funds have recently bought and sold shares of the business. Fisher Asset Management LLC grew its stake in HSBC by 2.3% during 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 acquiring an additional 402,288 shares in the last quarter. Dimensional Fund Advisors LP grew its stake in HSBC by 1.8% during 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 acquiring an additional 185,073 shares in the last quarter. Morgan Stanley grew its stake in HSBC by 15.3% during the 4th quarter. Morgan Stanley now owns 7,483,883 shares of the financial services provider's stock valued at $588,757,000 after acquiring an additional 993,473 shares in the last quarter. Northern Trust Corp grew its stake in HSBC by 4.7% during the 3rd quarter. Northern Trust Corp now owns 3,045,134 shares of the financial services provider's stock valued at $216,144,000 after acquiring an additional 136,342 shares in the last quarter. Finally, Clearbridge Investments LLC grew its stake in HSBC by 77.0% during 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 acquiring an additional 627,857 shares in the last quarter. Hedge funds and other institutional investors own 1.48% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts have commented on HSBC shares. Weiss Ratings cut shares of HSBC from a "hold (c+)" rating to a "hold (c)" rating in a research report on Wednesday. The Goldman Sachs Group started coverage on shares of HSBC in a research report on Thursday, March 26th. They issued a "buy" rating on the stock. Morgan Stanley assumed coverage on shares of HSBC in a research report on Wednesday, January 14th. They issued an "equal weight" rating on the stock. Zacks Research cut HSBC from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, May 5th. Finally, BNP Paribas Exane cut HSBC from an "outperform" rating to a "neutral" rating in a research note on Tuesday, April 14th. Five analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $63.00.

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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