Stock Traders Purchase Large Volume of HSBC Call Options (NYSE:HSBC)

HSBC Holdings plc (NYSE:HSBC) was the recipient of unusually large options trading on Wednesday. Traders purchased 61,945 call options on the stock. This represents an increase of approximately 1,879% compared to the average volume of 3,130 call options.

Wall Street Analysts Forecast Growth

HSBC has been the subject of a number of recent analyst reports. Barclays restated an “equal weight” rating on shares of HSBC in a research report on Wednesday, March 27th. BNP Paribas downgraded HSBC from a “neutral” rating to an “underperform” rating in a research report on Tuesday, January 16th. Two research analysts have rated the stock with a sell rating, four have given a hold rating and three have given a buy rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $761.75.

Institutional Trading of HSBC

Hedge funds have recently bought and sold shares of the stock. Prime Capital Investment Advisors LLC bought a new position in HSBC during the fourth quarter valued at $352,000. Ativo Capital Management LLC bought a new stake in HSBC during the fourth quarter worth approximately $1,181,000. Sequoia Financial Advisors LLC raised its position in HSBC by 11.6% during the fourth quarter. Sequoia Financial Advisors LLC now owns 26,256 shares of the financial services provider’s stock valued at $1,064,000 after purchasing an additional 2,724 shares during the period. Morgan Stanley lifted its stake in shares of HSBC by 0.9% in the 3rd quarter. Morgan Stanley now owns 8,374,688 shares of the financial services provider’s stock valued at $330,465,000 after purchasing an additional 73,129 shares during the last quarter. Finally, Sanders Capital LLC boosted its holdings in shares of HSBC by 29.0% in the 3rd quarter. Sanders Capital LLC now owns 95,080 shares of the financial services provider’s stock worth $3,752,000 after purchasing an additional 21,380 shares during the period. Hedge funds and other institutional investors own 1.48% of the company’s stock.

HSBC Stock Performance

HSBC stock traded up $0.43 during midday trading on Wednesday, reaching $45.41. 1,042,620 shares of the company traded hands, compared to its average volume of 2,199,513. The company has a debt-to-equity ratio of 0.51, a current ratio of 0.96 and a quick ratio of 0.96. HSBC has a 12 month low of $35.30 and a 12 month high of $45.42. The firm has a market capitalization of $171.73 billion, a price-to-earnings ratio of 7.82, a price-to-earnings-growth ratio of 1.00 and a beta of 0.58. The business has a 50 day moving average of $40.26 and a two-hundred day moving average of $39.34.

HSBC (NYSE:HSBC) last released its quarterly earnings results on Wednesday, February 21st. The financial services provider reported $0.57 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.90 by ($0.33). The company had revenue of $13.02 billion for the quarter. HSBC had a net margin of 16.13% and a return on equity of 10.80%. As a group, research analysts predict that HSBC will post 6.77 earnings per share for the current year.

HSBC Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 21st. Shareholders of record on Friday, May 10th will be paid a $0.50 dividend. The ex-dividend date is Thursday, May 9th. This represents a $2.00 annualized dividend and a yield of 4.40%. HSBC’s payout ratio is 106.55%.

About HSBC

HSBC Holdings plc provides banking and financial services worldwide. The company operates through Wealth and Personal Banking, Commercial Banking, and Global Banking and Markets segments. The Wealth and Personal Banking segment offers retail banking and wealth products, including current and savings accounts, mortgages and personal loans, credit and debit cards, and local and international payment services; and wealth management services comprising insurance and investment products, global asset management services, investment management, and private wealth solutions.