HDFC Bank (NYSE:HDB) Shares Cross Above Fifty Day Moving Average - Time to Sell?

Key Points

• HDFC Bank shares rose 2.5%, trading above their 50-day moving average of $22.68 and reaching $22.92, with the latest price at $22.745.
• Analyst sentiment is mixed but averages to a “Hold” rating, with a consensus price target of $26.10. Recent actions ranged from Goldman Sachs’ “Buy” initiation to Weiss Ratings’ “Sell” downgrade.
• The bank exceeded quarterly expectations, reporting EPS of $0.42 versus $0.40 expected and revenue of $8.20 billion, while institutional investors and hedge funds own 17.61% of the stock.

Shares of HDFC Bank Limited (NYSE:HDB - Get Free Report) passed above its fifty day moving average during trading on Monday. The stock has a fifty day moving average of $22.68 and traded as high as $22.92. HDFC Bank shares last traded at $22.7450, with a volume of 8,509,876 shares trading hands.

Analyst Upgrades and Downgrades

HDB has been the topic of several recent analyst reports. The Goldman Sachs Group began coverage on shares of HDFC Bank in a research note on Friday, August 21st. They set a "buy" rating on the stock. HSBC downgraded shares of HDFC Bank from a "buy" rating to a "hold" rating and cut their target price for the company from $30.80 to $26.10 in a research note on Monday, August 31st. Weiss Ratings cut HDFC Bank from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, September 25th. Wall Street Zen raised HDFC Bank from a "sell" rating to a "hold" rating in a research report on Saturday, October 24th. Finally, Zacks Research upgraded HDFC Bank from a "strong sell" rating to a "hold" rating in a research note on Friday, July 17th. One analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, HDFC Bank has an average rating of "Hold" and a consensus price target of $26.10.

HDFC Bank Stock Up 2.5%

The stock has a market capitalization of $116.71 billion, a price-to-earnings ratio of 13.00, a P/E/G ratio of 1.19 and a beta of 0.61. The company's fifty day simple moving average is $22.68 and its 200 day simple moving average is $25.83.

HDFC Bank (NYSE:HDB - Get Free Report) last posted its earnings results on Saturday, October 17th. The bank reported $0.42 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.40 by $0.02. The company had revenue of $8.20 billion during the quarter, compared to analysts' expectations of $4.95 billion. HDFC Bank had a net margin of 15.84% and a return on equity of 11.70%. As a group, analysts anticipate that HDFC Bank Limited will post 1.65 earnings per share for the current year.

Institutional Investors Weigh In On HDFC Bank

Hedge funds have recently bought and sold shares of the stock. Principal Financial Group Inc. increased its holdings in HDFC Bank by 16,808.5% in the 1st quarter. Principal Financial Group Inc. now owns 17,977,844 shares of the bank's stock valued at $447,289,000 after buying an additional 17,871,520 shares during the period. TT International Asset Management LTD bought a new stake in shares of HDFC Bank during the 3rd quarter worth approximately $85,025,000. Bank of America Corp DE lifted its holdings in shares of HDFC Bank by 40.7% during the 1st quarter. Bank of America Corp DE now owns 10,549,235 shares of the bank's stock worth $262,465,000 after acquiring an additional 3,051,055 shares during the period. Public Employees Retirement System of Ohio acquired a new stake in shares of HDFC Bank during the 2nd quarter worth approximately $65,204,000. Finally, Royal Bank of Canada boosted its position in shares of HDFC Bank by 6.3% during the 1st quarter. Royal Bank of Canada now owns 42,418,483 shares of the bank's stock worth $1,055,372,000 after acquiring an additional 2,520,716 shares in the last quarter. 17.61% of the stock is currently owned by institutional investors and hedge funds.

About HDFC Bank

HDFC Bank Limited is an Indian banking and financial services company headquartered in Mumbai, India. Established in 1994, the bank provides services to individuals, businesses, corporations and institutions through a broad network of physical branches, ATMs and digital banking channels.

Its principal offerings include savings and current accounts, deposits, personal and home loans, vehicle and consumer financing, business and commercial lending, credit and debit cards, payments, investment and wealth-management services, and foreign-exchange and treasury products.

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