HSBC (NYSE:HSBC) Reaches New 1-Year High – Here’s Why

HSBC Holdings plc (NYSE:HSBC) shares reached a new 52-week high on Thursday . The company traded as high as $83.05 and last traded at $82.8550, with a volume of 764856 shares changing hands. The stock had previously closed at $81.76.

HSBC News Roundup

Here are the key news stories impacting HSBC this week:

• Positive Sentiment: HSBC is undertaking a strategic review of its insurance business in Singapore, including exploring a potential sale — a move management says is part of simplifying operations globally; this could unlock value or reduce complexity if a divestment or restructuring follows. HSBC to review Singapore insurance business as its slims down globally
• Positive Sentiment: Morgan Stanley has begun analyst coverage of HSBC, which can raise investor attention and trading liquidity; the initiation itself is a near-term catalyst even if the published note’s stance is not widely publicized yet. Morgan Stanley Begins Coverage on HSBC (NYSE:HSBC)
• Neutral Sentiment: HSBC published investment commentary naming two AI stocks as likely earnings winners — informative for markets but not directly material to HSBC’s own earnings; shows the bank’s research franchise is active. HSBC Says These 2 AI Stocks Are Likely to Be Earnings Winners. Should You Buy Them Now?
• Neutral Sentiment: HSBC strategists (Max Kettner) are publicly very bullish on equities — commentary that reflects the bank’s market views but is unlikely to move HSBC shares materially by itself. We’re ‘almost maximum bullish’ on equities, particularly in the US.: HSBC’s Max Kettner
• Neutral Sentiment: HSBC research highlights long-term tech opportunities (e.g., smart glasses market forecast to 2040) — supports its research-driven revenue stream but is a longer-dated, non-core signal for bank valuation. Smart glasses market will be worth $200 billion by 2040, HSBC says

Analysts Set New Price Targets

Several equities analysts recently weighed in on the company. Morgan Stanley started coverage on HSBC in a research note on Wednesday. They issued an “equal weight” rating for the company. Weiss Ratings reiterated a “hold (c+)” rating on shares of HSBC in a research report on Monday, December 29th. Bank of America raised shares of HSBC from a “neutral” rating to a “buy” rating in a report on Wednesday, December 10th. Citigroup reaffirmed a “buy” rating on shares of HSBC in a research note on Friday, January 9th. Finally, Keefe, Bruyette & Woods upgraded shares of HSBC from a “hold” rating to a “moderate buy” rating in a report on Wednesday, December 17th. Two analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and six have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $63.00.

HSBC Stock Down 0.4%

The business has a 50 day simple moving average of $75.46 and a 200 day simple moving average of $69.35. The company has a market capitalization of $283.46 billion, a price-to-earnings ratio of 17.37, a PEG ratio of 0.94 and a beta of 0.52. The company has a debt-to-equity ratio of 0.49, a current ratio of 0.92 and a quick ratio of 0.92.

HSBC (NYSE:HSBC) last released its earnings results on Tuesday, October 28th. The financial services provider reported $1.80 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.65 by $0.15. HSBC had a net margin of 12.85% and a return on equity of 12.78%. The company had revenue of $17.79 billion for the quarter, compared to analyst estimates of $16.78 billion. As a group, equities analysts predict that HSBC Holdings plc will post 6.66 earnings per share for the current fiscal year.

HSBC Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, December 18th. Investors of record on Friday, November 7th were given a $0.50 dividend. This is a positive change from HSBC’s previous quarterly dividend of $0.50. The ex-dividend date was Friday, November 7th. This represents a $2.00 annualized dividend and a yield of 2.4%. HSBC’s payout ratio is currently 41.68%.

Institutional Trading of HSBC

Hedge funds have recently modified their holdings of the business. Sivia Capital Partners LLC increased its stake in shares of HSBC by 19.0% during the 2nd quarter. Sivia Capital Partners LLC now owns 11,896 shares of the financial services provider’s stock worth $723,000 after purchasing an additional 1,899 shares in the last quarter. Contravisory Investment Management Inc. boosted its stake in shares of HSBC by 4.4% during the second quarter. Contravisory Investment Management Inc. now owns 4,972 shares of the financial services provider’s stock valued at $302,000 after acquiring an additional 210 shares during the last quarter. Trust Point Inc. lifted its stake in shares of HSBC by 42.7% during the 2nd quarter. Trust Point Inc. now owns 6,368 shares of the financial services provider’s stock worth $387,000 after purchasing an additional 1,906 shares during the period. Mitchell & Pahl Private Wealth LLC lifted its position in HSBC by 2.0% during the second quarter. Mitchell & Pahl Private Wealth LLC now owns 23,418 shares of the financial services provider’s stock worth $1,424,000 after buying an additional 462 shares during the period. Finally, Sowell Financial Services LLC grew its holdings in HSBC by 2.1% in the 2nd quarter. Sowell Financial Services LLC now owns 37,231 shares of the financial services provider’s stock valued at $2,263,000 after buying an additional 782 shares during the period. 1.48% of the stock is owned by institutional investors and hedge funds.

HSBC Company Profile

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.