HDFC Bank (NYSE:HDB) Shares Gap Down - Should You Sell?

Key Points

• HDFC Bank shares fell 3.3%, opening at $22.70 versus the prior close of $23.84, and last traded near $23.12.
• Analyst sentiment is mixed but leans cautious: the consensus rating is “Hold” with a $26.10 price target, while Weiss Ratings and Wall Street Zen downgraded the stock to “Sell.”
• The bank met quarterly EPS expectations at $0.40 and exceeded revenue estimates with $5.10 billion, while institutional investors—including Royal Bank of Canada, Temasek, and Bank of America—recently increased their holdings.

HDFC Bank Limited (NYSE:HDB - Get Free Report) gapped down before the market opened on Monday. The stock had previously closed at $23.84, but opened at $22.70. HDFC Bank shares last traded at $23.1150, with a volume of 1,764,055 shares traded.

Analyst Ratings Changes

HDB has been the topic of several analyst reports. Weiss Ratings cut shares of HDFC Bank from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, September 25th. The Goldman Sachs Group began coverage on HDFC Bank in a research note on Friday, August 21st. They set a "buy" rating for the company. Wall Street Zen cut shares of HDFC Bank from a "hold" rating to a "sell" rating in a research note on Saturday, July 18th. Zacks Research upgraded HDFC Bank from a "strong sell" rating to a "hold" rating in a report on Friday, July 17th. Finally, HSBC lowered HDFC Bank from a "buy" rating to a "hold" rating and lowered their price target for the stock from $30.80 to $26.10 in a research report on Monday, August 31st. One research analyst has rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $26.10.

HDFC Bank Stock Down 3.3%

The firm has a 50 day simple moving average of $22.91 and a 200-day simple moving average of $24.26. The company has a market cap of $118.25 billion, a PE ratio of 13.56, a price-to-earnings-growth ratio of 1.16 and a beta of 0.61.

HDFC Bank (NYSE:HDB - Get Free Report) last released its earnings results on Saturday, October 17th. The bank reported $0.40 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.40. The firm had revenue of $5.10 billion for the quarter, compared to the consensus estimate of $4.92 billion. HDFC Bank had a return on equity of 11.84% and a net margin of 15.96%. As a group, equities analysts anticipate that HDFC Bank Limited will post 1.64 EPS for the current year.

Hedge Funds Weigh In On HDFC Bank

A number of institutional investors have recently modified their holdings of HDB. Royal Bank of Canada increased its holdings 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 during the last quarter. Principal Financial Group Inc. increased its holdings in shares of HDFC Bank by 16,808.5% in the first quarter. Principal Financial Group Inc. now owns 17,977,844 shares of the bank's stock worth $447,289,000 after purchasing an additional 17,871,520 shares during the period. Temasek Holdings Private Ltd lifted its position in HDFC Bank by 15.5% in the 1st quarter. Temasek Holdings Private Ltd now owns 12,559,656 shares of the bank's stock worth $312,484,000 after buying an additional 1,686,276 shares during the last quarter. Bank of America Corp DE lifted its holdings in HDFC Bank by 40.7% in the 1st quarter. Bank of America Corp DE now owns 10,549,235 shares of the bank's stock worth $262,465,000 after buying an additional 3,051,055 shares during the period. Finally, Trinity Street Asset Management LLP grew its holdings in HDFC Bank by 27.3% in the first quarter. Trinity Street Asset Management LLP now owns 7,724,700 shares of the bank's stock worth $192,191,000 after purchasing an additional 1,657,700 shares during the period. 17.61% of the stock is 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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