HSBC Holdings plc (NYSE:HSBC) Sees Large Increase in Short Interest

HSBC Holdings plc (NYSE:HSBC) was the recipient of a significant increase in short interest in the month of February. As of February 28th, there was short interest totalling 9,650,000 shares, an increase of 36.7% from the February 13th total of 7,060,000 shares. Based on an average daily volume of 2,210,000 shares, the days-to-cover ratio is currently 4.4 days. Approximately 0.3% of the shares of the company are short sold.

HSBC Price Performance

Shares of HSBC stock traded up $0.70 during mid-day trading on Tuesday, reaching $58.52. The stock had a trading volume of 525,143 shares, compared to its average volume of 2,651,420. HSBC has a 12-month low of $38.34 and a 12-month high of $61.88. The company has a market cap of $208.74 billion, a P/E ratio of 9.44, a price-to-earnings-growth ratio of 1.05 and a beta of 0.51. The business has a 50-day simple moving average of $54.14 and a 200 day simple moving average of $48.87. The company has a current ratio of 0.88, a quick ratio of 0.96 and a debt-to-equity ratio of 0.69.

HSBC (NYSE:HSBC) last announced its quarterly earnings results on Wednesday, February 19th. The financial services provider reported $1.45 earnings per share for the quarter, beating analysts’ consensus estimates of $1.41 by $0.04. HSBC had a return on equity of 12.20% and a net margin of 16.17%. The business had revenue of $11.56 billion during the quarter, compared to analysts’ expectations of $13.79 billion. On average, sell-side analysts anticipate that HSBC will post 6.66 earnings per share for the current year.

HSBC Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, April 25th. Investors of record on Friday, March 7th will be given a dividend of $1.80 per share. This represents a $7.20 dividend on an annualized basis and a yield of 12.30%. The ex-dividend date of this dividend is Friday, March 7th. HSBC’s dividend payout ratio is presently 115.81%.

Institutional Trading of HSBC

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in HSBC. Prime Capital Investment Advisors LLC increased its position in HSBC by 4.3% during the 3rd quarter. Prime Capital Investment Advisors LLC now owns 8,268 shares of the financial services provider’s stock worth $374,000 after purchasing an additional 341 shares in the last quarter. Huntington National Bank increased its position in HSBC by 11.9% during the 3rd quarter. Huntington National Bank now owns 2,122 shares of the financial services provider’s stock worth $96,000 after purchasing an additional 226 shares in the last quarter. OneDigital Investment Advisors LLC purchased a new stake in HSBC during the 3rd quarter worth about $263,000. Drive Wealth Management LLC grew its holdings in HSBC by 6.4% in the 3rd quarter. Drive Wealth Management LLC now owns 6,771 shares of the financial services provider’s stock valued at $306,000 after buying an additional 407 shares during the period. Finally, Caprock Group LLC grew its holdings in HSBC by 12.8% in the 3rd quarter. Caprock Group LLC now owns 39,566 shares of the financial services provider’s stock valued at $1,788,000 after buying an additional 4,490 shares during the period. Hedge funds and other institutional investors own 1.48% of the company’s stock.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the company. Royal Bank of Canada reaffirmed a “sector perform” rating on shares of HSBC in a report on Monday, February 3rd. Deutsche Bank Aktiengesellschaft downgraded HSBC from a “buy” rating to a “hold” rating in a report on Monday, February 3rd. StockNews.com raised HSBC from a “sell” rating to a “hold” rating in a report on Tuesday, March 11th. Barclays raised HSBC from an “equal weight” rating to an “overweight” rating in a report on Tuesday, March 4th. Finally, UBS Group reissued a “neutral” rating on shares of HSBC in a report on Thursday, March 6th. Four research analysts have rated the stock with a hold rating, one has given a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy”.

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.