HDFC Bank (NYSE:HDB) Cut to Sell at Wall Street Zen

Wall Street Zen lowered shares of HDFC Bank (NYSE:HDB) from a hold rating to a sell rating in a research report sent to investors on Saturday morning.

HDB has been the topic of several other research reports. Weiss Ratings reiterated a “sell (d+)” rating on shares of HDFC Bank in a research note on Wednesday, June 3rd. Zacks Research downgraded shares of HDFC Bank from a “hold” rating to a “strong sell” rating in a research note on Thursday, June 18th. Two analysts have rated the stock with a Sell rating, According to data from MarketBeat, the stock has an average rating of “Sell”.

HDFC Bank Trading Down 10.7%

NYSE:HDB opened at $23.56 on Friday. The business’s fifty day moving average price is $24.91 and its 200 day moving average price is $28.01. The firm has a market capitalization of $120.21 billion, a price-to-earnings ratio of 14.11, a PEG ratio of 1.23 and a beta of 0.64. HDFC Bank has a 1-year low of $22.91 and a 1-year high of $39.81.

HDFC Bank (NYSE:HDB) last issued its earnings results on Monday, July 20th. The bank reported $0.39 earnings per share for the quarter, missing analysts’ consensus estimates of $0.40 by ($0.01). The business had revenue of $9.01 billion during the quarter, compared to analyst estimates of $5.06 billion. HDFC Bank had a net margin of 15.30% and a return on equity of 12.96%. Equities analysts forecast that HDFC Bank will post 1.69 earnings per share for the current year.

Insider Buying and Selling at HDFC Bank

In other HDFC Bank news, insider N Srinivasan sold 10,000 shares of the business’s stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $8.72, for a total value of $87,200.00. Following the completion of the sale, the insider owned 638,422 shares of the company’s stock, valued at $5,567,039.84. The trade was a 1.54% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Ashish Parthasarthy sold 5,600 shares of the business’s stock in a transaction that occurred on Tuesday, April 28th. The stock was sold at an average price of $8.70, for a total value of $48,720.00. Following the completion of the sale, the insider owned 842,958 shares of the company’s stock, valued at approximately $7,333,734.60. This trade represents a 0.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.00% of the stock is currently owned by insiders.

Hedge Funds Weigh In On HDFC Bank

A number of institutional investors have recently modified their holdings of the company. GQG Partners LLC grew its stake in HDFC Bank by 1.5% in the 4th quarter. GQG Partners LLC now owns 52,962,709 shares of the bank’s stock valued at $1,935,258,000 after buying an additional 777,977 shares during the last quarter. Royal Bank of Canada boosted its holdings in HDFC Bank by 6.3% during the first quarter. Royal Bank of Canada now owns 42,418,483 shares of the bank’s stock valued at $1,055,372,000 after acquiring an additional 2,520,716 shares during the period. Schroder Investment Management Group grew its position in shares of HDFC Bank by 4.1% in the fourth quarter. Schroder Investment Management Group now owns 26,264,726 shares of the bank’s stock valued at $959,713,000 after purchasing an additional 1,043,596 shares during the last quarter. JPMorgan Chase & Co. grew its position in shares of HDFC Bank by 6.8% in the fourth quarter. JPMorgan Chase & Co. now owns 20,504,634 shares of the bank’s stock valued at $749,239,000 after purchasing an additional 1,299,851 shares during the last quarter. Finally, Principal Financial Group Inc. increased its stake 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. Institutional investors own 17.61% of the company’s stock.

Key HDFC Bank News

Here are the key news stories impacting HDFC Bank this week:

• Positive Sentiment: HDFC Bank reported quarterly EPS of $0.39, slightly ahead of the $0.38 consensus estimate, and revenue of $9.01 billion versus expectations of $5.06 billion, which shows the bank still delivered a top- and bottom-line beat. Listen to Conference Call
• Positive Sentiment: Loan growth remained healthy at about 15.4% year over year and deposit growth was about 13.3%, indicating the core franchise is still expanding. HDFC Bank ADR Drops as Margin Compression Overshadows Quarterly Growth
• Neutral Sentiment: Management also reported a return on equity of 12.96% and a net margin of 15.30%, suggesting solid operating performance even as the market remains focused on the next quarter’s trend. HDFC Bank stock page
• Negative Sentiment: Despite the earnings beat, the stock is falling because net interest margin narrowed to about 3.26%, raising concerns that stronger balance-sheet growth is not translating into earnings as efficiently as expected. HDFC Bank ADR Drops as Margin Compression Overshadows Quarterly Growth
• Negative Sentiment: Market commentary also points to softer core income momentum and lower other income, which appears to be overshadowing the bank’s otherwise solid quarterly growth. Why did HDFC Bank ADR tanked nearly 10% after stock crash in Dalal Street?

About HDFC Bank

HDFC Bank Limited is one of India’s leading private sector banks, headquartered in Mumbai. Incorporated in 1994 and promoted by Housing Development Finance Corporation (HDFC), the bank provides a full range of banking and financial services to retail, small and medium-sized enterprises, and corporate customers. It is publicly listed and also accessible to international investors through American Depositary Receipts (ADRs) trading on the New York Stock Exchange under the symbol HDB.

The bank’s core activities include retail banking (deposit accounts, personal loans, home loans, auto loans, and credit cards), commercial and corporate banking (working capital finance, term lending, trade finance and treasury services), and transaction banking (cash management and payment solutions).