Research Analysts Offer Predictions for HSBC FY2027 Earnings

Key Points

• Erste Group raised its FY2027 EPS estimate for HSBC to $9.05 (from $8.95), and analysts collectively rate the stock a Moderate Buy with a consensus price target of $63.00 (1 Strong Buy, 7 Buy, 2 Hold).
• HSBC sharply increased its quarterly dividend to $2.25 (annualized $9.00), yielding 10.6% and lifting the company’s payout ratio to about 148.4%, up from the prior $0.50 quarterly payout.
• The bank reported Q4 EPS of $1.35 on $17.70 billion in revenue, trades at a P/E of 14.06 with a market cap near $292.2 billion, and its share price sits close to the one-year high.

HSBC Holdings plc (NYSE:HSBC - Free Report) - Analysts at Erste Group Bank increased their FY2027 EPS estimates for shares of HSBC in a report issued on Thursday, April 2nd. Erste Group Bank analyst S. Lingnau now anticipates that the financial services provider will post earnings of $9.05 per share for the year, up from their previous estimate of $8.95. The consensus estimate for HSBC's current full-year earnings is $6.66 per share.

Several other equities research analysts have also issued reports on the stock. Weiss Ratings upgraded shares of HSBC from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, March 16th. The Goldman Sachs Group assumed coverage on shares of HSBC in a research note on Thursday, March 26th. They set a "buy" rating on the stock. Morgan Stanley assumed coverage on shares of HSBC in a research note on Wednesday, January 14th. They set an "equal weight" rating on the stock. Zacks Research upgraded shares of HSBC from a "hold" rating to a "strong-buy" rating in a research note on Monday. Finally, Citigroup restated a "buy" rating on shares of HSBC in a research note on Friday, January 9th. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $63.00.

HSBC Stock Up 0.5%

Shares of HSBC stock opened at $85.07 on Wednesday. The company has a current ratio of 0.87, a quick ratio of 0.87 and a debt-to-equity ratio of 0.62. HSBC has a 1 year low of $45.66 and a 1 year high of $94.79. The firm's fifty day moving average price is $85.48 and its two-hundred day moving average price is $77.84. The firm has a market capitalization of $292.21 billion, a P/E ratio of 14.06, a PEG ratio of 0.88 and a beta of 0.55.

HSBC (NYSE:HSBC - Get Free Report) last issued its quarterly earnings results on Saturday, February 14th. The financial services provider reported $1.35 earnings per share (EPS) for the quarter. HSBC had a net margin of 16.07% and a return on equity of 13.10%. The firm had revenue of $17.70 billion for the quarter.

HSBC Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, April 30th. Stockholders of record on Friday, March 13th will be paid a dividend of $2.25 per share. The ex-dividend date is Friday, March 13th. This represents a $9.00 annualized dividend and a dividend yield of 10.6%. This is a boost from HSBC's previous quarterly dividend of $0.50. HSBC's dividend payout ratio (DPR) is presently 148.43%.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. Cornerstone Planning Group LLC grew its stake in HSBC by 30.7% in the 4th quarter. Cornerstone Planning Group LLC now owns 498 shares of the financial services provider's stock valued at $43,000 after buying an additional 117 shares during the last quarter. Lester Murray Antman dba SimplyRich grew its stake in HSBC by 1.0% in the 4th quarter. Lester Murray Antman dba SimplyRich now owns 12,445 shares of the financial services provider's stock valued at $979,000 after buying an additional 123 shares during the last quarter. Ellevest Inc. grew its stake in HSBC by 0.7% in the 4th 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. Federation des caisses Desjardins du Quebec grew its stake in HSBC by 5.3% in the 4th quarter. Federation des caisses Desjardins du Quebec now owns 2,658 shares of the financial services provider's stock valued at $209,000 after buying an additional 133 shares during the last quarter. Finally, Checchi Capital Advisers LLC grew its stake in HSBC by 0.5% in the 4th quarter. Checchi Capital Advisers LLC now owns 26,554 shares of the financial services provider's stock valued at $2,089,000 after buying an additional 144 shares during the last quarter. 1.48% of the stock is currently owned by institutional investors and hedge funds.

HSBC Company Profile

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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