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

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

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in HSBC. Transamerica Financial Advisors LLC grew its holdings in shares of HSBC by 287.1% in the 4th quarter. Transamerica Financial Advisors LLC now owns 329 shares of the financial services provider’s stock valued at $26,000 after acquiring an additional 244 shares in the last quarter. Measured Wealth Private Client Group LLC bought a new stake in HSBC during the third quarter worth about $26,000. Binnacle Investments Inc raised its holdings in HSBC by 80.5% during the third quarter. Binnacle Investments Inc now owns 444 shares of the financial services provider’s stock worth $32,000 after acquiring an additional 198 shares in the last quarter. Whipplewood Advisors LLC acquired a new position in HSBC during the first quarter valued at approximately $41,000. Finally, JPL Wealth Management LLC bought a new position in HSBC in the third quarter valued at approximately $41,000. 1.48% of the stock is owned by institutional investors.

Insider Buying and Selling

In related news, insider Daniel Scott Palomaki sold 23,123 shares of the company’s stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $18.11, for a total value of $418,757.53. Following the transaction, the insider owned 4,973 shares in the company, valued at approximately $90,061.03. This represents a 82.30% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.01% of the company’s stock.

Key Stories 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 Stock Down 0.6%

HSBC opened at $106.44 on Friday. The stock’s fifty day simple moving average is $96.62 and its 200 day simple moving average is $90.26. HSBC Holdings plc has a 1-year low of $60.61 and a 1-year high of $107.58. The stock has a market cap of $365.81 billion, a PE ratio of 17.45, a price-to-earnings-growth ratio of 0.95 and a beta of 0.57. The company has a current ratio of 0.92, a quick ratio of 0.92 and a debt-to-equity ratio of 0.52.

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

HSBC Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Friday, May 15th were issued a dividend of $0.50 per share. The ex-dividend date of this dividend was Friday, May 15th. This represents a $2.00 annualized dividend and a dividend yield of 1.9%. HSBC’s payout ratio is presently 32.46%.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the company. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating on shares of HSBC in a research note on Tuesday, June 23rd. Citigroup reissued a “buy” rating on shares of HSBC in a research note on Thursday, July 16th. Erste Group Bank lowered shares of HSBC from a “buy” rating to a “hold” rating in a research report on Wednesday, July 15th. Royal Bank Of Canada reissued a “sector perform” rating on shares of HSBC in a research report on Thursday, May 14th. Finally, BNP Paribas Exane cut shares of HSBC from an “outperform” rating to a “neutral” rating in a report on Tuesday, April 14th. Four equities research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold”.

About HSBC

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.