HSBC Holdings: Financial updates & growth prospects

HSBC Holdings offers banking and financial services globally. The company operates through three segments: Global Banking and Markets, Commercial Banking, and Wealth and Personal Banking.

The Wealth and Personal Banking segment provides comprehensive wealth management services, encompassing investment management, global asset management, insurance, investment products, and private wealth solutions.

Retail banking and wealth products include savings and current accounts, loans and personal loans, debit and credit cards, and both international and local payment services.

“HSBC Holdings started its share buyback program on May 7, 2024. It announced the purchase of 3,246,800 common shares for cancellation.

The transactions, carried out via Morgan Stanley on the Hong Kong Stock Exchange, are a component of a larger buy-back program that affects the voting rights share capital of the company and amounts to approximately US$2.823 billion for 322,955,599 shares.

HSBC (LON) shares above 200-day moving average of $647.82

HSBC Holdings plc (LON:HSBA – Get Free Report) traded higher in mid-July. Its share price moved above the 200-day moving averageThe stock traded as high as GBX 667.10 ($8.65) and has a 200-day moving average of GBX 647.82 ($8.40). With 12,892,707 shares traded, HSBC’s share price last changed to GBX 666.70 ($8.65).

JPMorgan Chase & Co. raised its price target for HSBC from GBX 660 ($8.56) to GBX 700 ($9.08). It also downgraded the company to ‘neutral’ in a report published on Thursday, May 2.

In a report released on Tuesday, April 30th, Berenberg Bank upgraded its price target for HSBC from GBX 800 ($10.37) to GBX 830 ($10.76) and assigned the company a “buy” rating. Lastly, in a report released on Monday, July 8, Citigroup reiterated its “top pick” rating for HSBC shares.

Four research analysts have given the stock a buy rating, one strong buy rating, two hold ratings, and one buy rating. The company has a consensus target price of GBX 792 ($10.27) and a rating of “Moderate Buy,” according to data from MarketBeat.

HSBC Holdings: Market Value, Dividend Yield & Insider Buying Activity

The company’s market value is £125.07 billion, and its price-to-earnings-growth ratio is 5.15, beta is 0.56, and PE ratio is 732.64. The 50-day and 200-day moving average prices of the company are GBX 686.62 and GBX 647.82, respectively.

The company recently declared a dividend and paid it on Friday, June 21. It distributed a $0.31 dividend per share to stockholders who held shares on record as of Thursday, May 9.

On Thursday, May 9, the ex-dividend date occurred. This indicates a 3.7% dividend yield. The current dividend payout ratio for HSBC is 5,384.62%.

In related news, on Wednesday, May 8, insider Georges Elhedery purchased 26,899 shares of the company’s stock. The shares were purchased for a total of £191,789.87 ($248,722.44), or an average price of GBX 713 ($9.25) per share. Corporate insiders own 0.32% of the shares.

HSBC Holdings: Strong buy on stability & growth prospects

Morgan Stanley analyst Nick Lord kept his Buy rating on HSBC Holdings (HSBA – Research Report) with a HK$77.60 price target.

The recent change in HSBC Holdings’ leadership, with Georges Elhedery scheduled to become Group CEO on September 2nd, is the basis for Nick Lord’s rating.

Investors do not expect Elhedery’s internal appointment to have a major effect on the share price. This decision removes a previous uncertainty and improves the bank’s outlook stability.

Furthermore, HSBC Holdings’ financial metrics point to growth potential, with a price target implying an upside of 16%. The market capitalisation and typical daily trading value of the bank demonstrate its sound financial position.

These elements, along with the stability from appointing a new CEO, support a buy recommendation for HSBC Holdings.

Goldman Sachs kept a Buy rating on the stock. It set a price target of £8.28 in a report published in mid-July.

HSBC Holdings: Top FTSE dividend stock with Asian growth

Analysts rank HSBC Holdings plc (NYSE:HSBC) eighth among FTSE dividend stock recommendations. The company’s interim dividend includes a special dividend of $1.05 per ADR, bringing the total to $1.55 per ADS.

HSBC used profits from the sale of its Canadian banking operations to Royal Bank of Canada to fund this special dividend.

The last day of the sale was March 28, 2024. The share price has increased by more than 10% since then. HSBC offers a dividend yield of 7.04% as of June 11.

Strong position in Asia is a big advantage for HSBC Holdings plc (NYSE: HSBC). The retail wealth management division of Citi in mainland China was recently fully acquired by HSBC (China).

This covers investment assets, deposits, and clients connected to wealth management in 11 major Chinese mainland cities. With a 30% increase in its wealth clientele and a 53% increase in invested assets over the previous year, the bank experienced notable growth in mainland China in 2023.

A 33% increase in Asia’s Net New Invested Assets (NNIA) to $19 billion was facilitated by HSBC Holdings plc (NYSE:HSBC) in China, which almost doubled its NNIA in the first quarter of 2024 compared to the same period the previous year.

HSBC Holdings: Strong Q1 Profit & Dividend Amid Geopolitical Risks

The company’s focus appears to be on the area where it makes about half of its revenue, based on these acquisitions. However, we think that HSBC’s stock is currently trading at a discount because of geopolitical tensions and the region’s impact on GDP growth. The forward P/E ratio for the stock is 7.36.

HSBC Holdings plc (NYSE:HSBC) reported $20.8 billion in revenue for the first quarter of 2024, a 3% increase over the same period the previous year. Nonetheless, the business’s $8.7 billion net interest income decreased by $0.3 billion. Thanks to its impressive first-quarter profit of $12.7 billion, the company has been able to continue rewarding its shareholders. Through dividends and share repurchases, the company gave $8.8 billion back to shareholders during the quarter.

As of the end of March, 17 hedge funds held stakes in HSBC Holdings plc (NYSE:HSBC), up from 15 the previous quarter, according to Insider Monkey’s database. These interests have a combined value of almost $70.7 million.

On a list of the top FTSE dividend stocks, HSBC comes in at number eight overall. Although it is recognised that investing in HSBC has its potential, it is believed that investing in AI stocks will yield higher returns in a shorter amount of time.

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