HSBC (NYSE:HSBC) Sets New 52-Week High - Still a Buy?

Key Points

• HSBC shares peaked at a new 52-week high of $68.55, closing at $68.38 with strong trading volume.
• Analysts have upgraded HSBC's rating to "outperform" or "strong-buy," contributing to an average rating of "Moderate Buy" with a target of $63.00.
• The company also announced a quarterly dividend of $0.495 per share, representing a 2.9% yield, set to be paid on September 26th.

HSBC Holdings plc (NYSE:HSBC - Get Free Report) shares reached a new 52-week high during trading on Thursday . The company traded as high as $68.55 and last traded at $68.38, with a volume of 3494793 shares changing hands. The stock had previously closed at $66.53.

Wall Street Analysts Forecast Growth

HSBC has been the topic of a number of analyst reports. BNP Paribas Exane raised HSBC from an "underperform" rating to an "outperform" rating in a research note on Friday, September 5th. BNP Paribas raised HSBC from a "strong sell" rating to a "strong-buy" rating in a research note on Friday, September 5th. Finally, Bank of America reaffirmed a "neutral" rating and set a $63.00 price objective on shares of HSBC in a research note on Tuesday, June 3rd. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat.com, HSBC currently has an average rating of "Moderate Buy" and an average price target of $63.00.

HSBC Price Performance

The company has a 50-day moving average of $63.80 and a two-hundred day moving average of $59.42. The stock has a market capitalization of $237.33 billion, a PE ratio of 13.54, a P/E/G ratio of 1.48 and a beta of 0.65. The company has a debt-to-equity ratio of 0.65, a current ratio of 0.86 and a quick ratio of 0.93.

HSBC (NYSE:HSBC - Get Free Report) last released its earnings results on Wednesday, July 30th. The financial services provider reported $1.95 earnings per share for the quarter, topping the consensus estimate of $1.62 by $0.33. HSBC had a return on equity of 12.73% and a net margin of 13.48%.The firm had revenue of $16.90 billion for the quarter, compared to the consensus estimate of $16.64 billion. Sell-side analysts predict that HSBC Holdings plc will post 6.66 EPS for the current fiscal year.

HSBC Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 26th. Investors of record on Friday, August 15th will be given a dividend of $0.495 per share. The ex-dividend date is Friday, August 15th. This represents a $1.98 annualized dividend and a yield of 2.9%. HSBC's dividend payout ratio is 39.21%.

Hedge Funds Weigh In On HSBC

A number of large investors have recently modified their holdings of the company. Fisher Asset Management LLC raised its holdings in shares of HSBC by 9.2% in the 2nd quarter. Fisher Asset Management LLC now owns 17,043,371 shares of the financial services provider's stock worth $1,036,067,000 after purchasing an additional 1,430,797 shares during the period. Goldman Sachs Group Inc. raised its holdings in shares of HSBC by 1.1% in the 1st quarter. Goldman Sachs Group Inc. now owns 4,726,420 shares of the financial services provider's stock worth $271,438,000 after purchasing an additional 53,072 shares during the period. Northern Trust Corp raised its holdings in shares of HSBC by 3.3% in the 1st quarter. Northern Trust Corp now owns 2,873,096 shares of the financial services provider's stock worth $165,002,000 after purchasing an additional 91,789 shares during the period. Contrarian Capital Management L.L.C. raised its holdings in shares of HSBC by 425.4% in the 1st quarter. Contrarian Capital Management L.L.C. now owns 1,265,656 shares of the financial services provider's stock worth $72,687,000 after purchasing an additional 1,024,780 shares during the period. Finally, American Century Companies Inc. raised its holdings in shares of HSBC by 11.9% in the 2nd quarter. American Century Companies Inc. now owns 1,143,382 shares of the financial services provider's stock worth $69,506,000 after purchasing an additional 121,151 shares during the period. 1.48% of the stock is currently owned by hedge funds and other institutional investors.

About HSBC

HSBC Holdings plc provides banking and financial services worldwide. The company operates through Wealth and Personal Banking, Commercial Banking, and Global Banking and Markets segments. The Wealth and Personal Banking segment offers retail banking and wealth products, including current and savings accounts, mortgages and personal loans, credit and debit cards, and local and international payment services; and wealth management services comprising insurance and investment products, global asset management services, investment management, and private wealth solutions.

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