HDFC Bank (NYSE:HDB) Shares Gap Down – Here’s Why

HDFC Bank Limited (NYSE:HDB)’s share price gapped down prior to trading on Monday. The stock had previously closed at $23.84, but opened at $22.70. HDFC Bank shares last traded at $23.1150, with a volume of 1,764,055 shares trading hands.

Analyst Ratings Changes

HDB has been the topic of several research analyst reports. The Goldman Sachs Group initiated coverage on shares of HDFC Bank in a research note on Friday, August 21st. They set a “buy” rating on the stock. Wall Street Zen cut HDFC Bank from a “hold” rating to a “sell” rating in a research note on Saturday, July 18th. HSBC cut HDFC Bank from a “buy” rating to a “hold” rating and dropped their price objective for the company from $30.80 to $26.10 in a research note on Monday, August 31st. Zacks Research upgraded shares of HDFC Bank from a “strong sell” rating to a “hold” rating in a research note on Friday, July 17th. Finally, Weiss Ratings downgraded HDFC Bank from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, September 25th. One analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $26.10.

HDFC Bank Price Performance

The firm has a market cap of $118.25 billion, a PE ratio of 13.56, a PEG ratio of 1.16 and a beta of 0.61. The stock has a 50 day simple moving average of $22.91 and a 200-day simple moving average of $24.26.

HDFC Bank (NYSE:HDB) last released its earnings results on Saturday, October 17th. The bank reported $0.40 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.40. The company had revenue of $5.10 billion during the quarter, compared to analyst estimates of $4.92 billion. HDFC Bank had a net margin of 15.96% and a return on equity of 11.84%. As a group, equities analysts predict that HDFC Bank Limited will post 1.64 EPS for the current fiscal year.

Hedge Funds Weigh In On HDFC Bank

A number of institutional investors have recently added to or reduced their stakes in HDB. Royal Bank of Canada increased its stake in HDFC Bank by 6.3% during the 1st quarter. Royal Bank of Canada now owns 42,418,483 shares of the bank’s stock worth $1,055,372,000 after buying an additional 2,520,716 shares during the period. Principal Financial Group Inc. raised its holdings 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 valued at $447,289,000 after buying an additional 17,871,520 shares during the last quarter. Temasek Holdings Private Ltd grew its stake in shares of HDFC Bank by 15.5% in the 1st quarter. Temasek Holdings Private Ltd now owns 12,559,656 shares of the bank’s stock valued at $312,484,000 after purchasing an additional 1,686,276 shares during the last quarter. Bank of America Corp DE increased its stake in shares of HDFC Bank by 40.7% during the first quarter. Bank of America Corp DE now owns 10,549,235 shares of the bank’s stock worth $262,465,000 after acquiring an additional 3,051,055 shares during the period. Finally, Trinity Street Asset Management LLP grew its holdings in HDFC Bank by 27.3% during the first quarter. Trinity Street Asset Management LLP now owns 7,724,700 shares of the bank’s stock worth $192,191,000 after acquiring an additional 1,657,700 shares during the period. Hedge funds and other institutional investors own 17.61% of the company’s stock.

HDFC Bank Company Profile

HDFC Bank Limited is an Indian banking and financial services company headquartered in Mumbai, India. Established in 1994, the bank provides services to individuals, businesses, corporations and institutions through a broad network of physical branches, ATMs and digital banking channels.

Its principal offerings include savings and current accounts, deposits, personal and home loans, vehicle and consumer financing, business and commercial lending, credit and debit cards, payments, investment and wealth-management services, and foreign-exchange and treasury products.