HSBC (HSBC) Cut to Sell at Zacks Investment Research

Zacks Investment Research lowered shares of HSBC (NYSE:HSBC) from a hold rating to a sell rating in a research report sent to investors on Wednesday, September 12th.

According to Zacks, “Shares of HSBC have underperformed the industry on the NYSE in the past three months. While the company is expected to continue benefitting from its extensive global network and solid asset growth, its efforts to increase exposure in emerging markets will likely lead to elevated expenses. Thus, higher costs will hurt the company’s bottom-line in the near-term. Also, dismal European economic growth, weak loan demand and Brexit-related concerns are expected to continue leading to muted revenues. Further, litigation and regulatory issues might hamper the company's financials and hence remain a major concern.”

A number of other research firms have also recently weighed in on HSBC. Societe Generale cut shares of HSBC from a buy rating to a hold rating in a research note on Monday, September 10th. Keefe, Bruyette & Woods raised shares of HSBC from a market perform rating to an outperform rating in a research note on Tuesday, September 11th. DZ Bank reiterated a sell rating on shares of HSBC in a research report on Monday, August 6th. JPMorgan Chase & Co. upgraded shares of HSBC from a neutral rating to an overweight rating in a research report on Tuesday, July 10th. Finally, ValuEngine lowered shares of HSBC from a hold rating to a sell rating in a research report on Monday, July 2nd. Three investment analysts have rated the stock with a sell rating, eight have given a hold rating and four have assigned a buy rating to the company’s stock. HSBC has an average rating of Hold.

Shares of HSBC stock traded down $0.38 on Wednesday, hitting $43.82. The company’s stock had a trading volume of 1,221,954 shares, compared to its average volume of 1,516,178. The company has a quick ratio of 0.96, a current ratio of 0.90 and a debt-to-equity ratio of 0.55. HSBC has a fifty-two week low of $42.46 and a fifty-two week high of $55.89.

HSBC (NYSE:HSBC) last released its earnings results on Monday, August 6th. The financial services provider reported $1.05 earnings per share for the quarter, hitting the Zacks’ consensus estimate of $1.05. The firm had revenue of $13.58 billion for the quarter. As a group, sell-side analysts forecast that HSBC will post 3.65 earnings per share for the current fiscal year.

Several hedge funds have recently modified their holdings of HSBC. Oppenheimer Asset Management Inc. increased its position in shares of HSBC by 0.9% during the first quarter. Oppenheimer Asset Management Inc. now owns 357,016 shares of the financial services provider’s stock worth $17,020,000 after acquiring an additional 3,167 shares in the last quarter. BTC Capital Management Inc. grew its position in HSBC by 13.1% in the first quarter. BTC Capital Management Inc. now owns 12,963 shares of the financial services provider’s stock valued at $620,000 after purchasing an additional 1,503 shares in the last quarter. Kayne Anderson Rudnick Investment Management LLC grew its position in HSBC by 0.7% in the first quarter. Kayne Anderson Rudnick Investment Management LLC now owns 318,045 shares of the financial services provider’s stock valued at $15,161,000 after purchasing an additional 2,060 shares in the last quarter. Schnieders Capital Management LLC grew its position in HSBC by 100.4% in the first quarter. Schnieders Capital Management LLC now owns 9,480 shares of the financial services provider’s stock valued at $452,000 after purchasing an additional 4,750 shares in the last quarter. Finally, Matthews International Capital Management LLC grew its position in HSBC by 20.2% in the first quarter. Matthews International Capital Management LLC now owns 2,312,937 shares of the financial services provider’s stock valued at $110,258,000 after purchasing an additional 388,400 shares in the last quarter. 2.56% of the stock is owned by institutional investors.

About HSBC

HSBC Holdings plc provides banking and financial products and services. The company operates through Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Global Private Banking segments. The Retail Banking and Wealth Management segment offers personal banking products and services, mortgages and loans, credit cards, insurance and investment products, savings products, international services, and wealth solutions and financial planning services, as well as telephone, Internet, and mobile banking services.

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