Royal Bank of Canada Buys 192,133 Shares of HSBC Holdings plc $HSBC

Royal Bank of Canada raised its stake in shares of HSBC Holdings plc (NYSE:HSBC) by 17.3% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 1,304,192 shares of the financial services provider’s stock after buying an additional 192,133 shares during the quarter. Royal Bank of Canada’s holdings in HSBC were worth $107,582,000 at the end of the most recent reporting period.

A number of other hedge funds have also modified their holdings of the company. Quantinno Capital Management LP boosted its stake in HSBC by 20.9% during the 1st quarter. Quantinno Capital Management LP now owns 525,775 shares of the financial services provider’s stock worth $43,371,000 after acquiring an additional 90,711 shares during the last quarter. Wealth Alliance LLC increased its stake in HSBC by 19.5% in the first quarter. Wealth Alliance LLC now owns 7,853 shares of the financial services provider’s stock valued at $648,000 after purchasing an additional 1,281 shares in the last quarter. Renaissance Technologies LLC raised its holdings in HSBC by 391.6% in the first quarter. Renaissance Technologies LLC now owns 524,122 shares of the financial services provider’s stock worth $43,235,000 after purchasing an additional 417,500 shares during the period. Compound Planning Inc. boosted its position in shares of HSBC by 1.7% during the first quarter. Compound Planning Inc. now owns 75,875 shares of the financial services provider’s stock worth $6,259,000 after purchasing an additional 1,241 shares in the last quarter. Finally, Klingman & Associates LLC boosted its position in shares of HSBC by 12.7% during the first quarter. Klingman & Associates LLC now owns 3,317 shares of the financial services provider’s stock worth $274,000 after purchasing an additional 374 shares in the last quarter. 1.48% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

HSBC has been the subject of a number of recent analyst reports. Weiss Ratings cut shares of HSBC from a “hold (c+)” rating to a “hold (c)” rating in a research report on Wednesday, May 6th. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating on shares of HSBC in a report on Tuesday, June 23rd. Zacks Research downgraded HSBC from a “strong-buy” rating to a “hold” rating in a report on Tuesday, May 5th. Royal Bank Of Canada reaffirmed a “sector perform” rating on shares of HSBC in a research report on Thursday, May 14th. Finally, Erste Group Bank cut HSBC from a “buy” rating to a “hold” rating in a report on Wednesday, July 15th. Four research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold”.

Insider Buying and Selling at HSBC

In related news, insider Daniel Scott Palomaki sold 23,123 shares of the stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $18.11, for a total transaction of $418,757.53. Following the completion of the transaction, the insider directly owned 4,973 shares in the company, valued at approximately $90,061.03. This trade represents a 82.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.01% of the stock is owned by corporate insiders.

Key Headlines Impacting HSBC

Here are the key news stories impacting HSBC this week:

• Positive Sentiment: Strategic exit from Australian retail banking: HSBC will sell approximately A$36 billion (US$25.3 billion) of Australian home and personal loans to Blackstone. The transaction allows HSBC to leave a noncore consumer-banking market, simplify operations and potentially redeploy capital toward higher-return businesses. Pepper Money will service the loan portfolio after the deal closes. HSBC to sell $25.3 billion Australian home loan portfolio to Blackstone
• Positive Sentiment: Capital structure management: HSBC plans to redeem in full its £1 billion 5.875% perpetual subordinated contingent convertible securities and delist the issue. The move may simplify the capital structure and remove an expensive instrument, although it will require a cash outlay. HSBC to Redeem £1bn Contingent Convertible Securities and Delist Issue
• Neutral Sentiment: Routine share-capital update: HSBC confirmed its issued share capital and total voting rights as of July 30. The disclosure does not indicate a material change to the investment case. HSBC Confirms Total Voting Rights Following Share Capital Update
• Negative Sentiment: Sale-related earnings drag: HSBC is expected to record a loss of less than US$100 million on the Australian portfolio sale, while the exit removes future interest income and customer relationships. The market will focus on the final accounting impact and how effectively HSBC redeploys the released capital. HSBC to sell US$25b of Australian home loans to Blackstone at a loss

HSBC Trading Down 0.6%

Shares of NYSE:HSBC opened at $106.44 on Friday. HSBC Holdings plc has a 12 month low of $60.61 and a 12 month high of $107.58. 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 company’s fifty day simple moving average is $96.62 and its 200 day simple moving average is $90.26. The firm has a market cap of $365.81 billion, a price-to-earnings ratio of 17.45, a PEG ratio of 0.95 and a beta of 0.57.

HSBC (NYSE:HSBC) last posted its quarterly earnings data on Tuesday, March 31st. The financial services provider reported $0.44 EPS for the quarter. The business had revenue of $19.12 billion for the quarter. HSBC had a net margin of 16.06% and a return on equity of 13.35%. As a group, research analysts forecast that HSBC Holdings plc will post 8.64 EPS for the current fiscal year.

HSBC Cuts Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Friday, May 15th were issued a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date was Friday, May 15th. HSBC’s payout ratio is 32.46%.

HSBC 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.