HSBC (HSBC) Cut to Sell at Zacks Investment Research

Zacks Investment Research cut shares of HSBC (NYSE:HSBC) from a hold rating to a sell rating in a research note published on Wednesday.

According to Zacks, “Shares of HSBC have underperformed the industry on the NYSE in the past three months. While the company is expected to continue benefitting from its extensive global network and solid asset growth, its efforts to increase exposure in emerging markets will likely lead to elevated expenses. Thus, higher costs will hurt the company’s bottom-line in the near-term. Also, dismal European economic growth, weak loan demand and Brexit-related concerns are expected to continue leading to muted revenues. Further, litigation and regulatory issues might hamper the company's financials and hence remain a major concern.”

HSBC has been the subject of several other research reports. Societe Generale cut shares of HSBC from a buy rating to a hold rating in a research report on Monday, September 10th. DZ Bank reaffirmed a sell rating on shares of HSBC in a research report on Monday, August 6th. ValuEngine cut shares of HSBC from a hold rating to a sell rating in a research report on Monday, July 2nd. Keefe, Bruyette & Woods raised shares of HSBC from a market perform rating to an outperform rating in a research report on Tuesday, September 11th. Finally, JPMorgan Chase & Co. raised shares of HSBC from a neutral rating to an overweight rating in a research report on Tuesday, July 10th. Three equities research analysts have rated the stock with a sell rating, eight have issued a hold rating and four have given a buy rating to the stock. HSBC currently has a consensus rating of Hold.

HSBC stock opened at $43.55 on Wednesday. The stock has a market capitalization of $172.15 billion, a price-to-earnings ratio of 21.57, a P/E/G ratio of 1.96 and a beta of 0.80. The company has a debt-to-equity ratio of 0.55, a current ratio of 0.90 and a quick ratio of 0.96. HSBC has a 1 year low of $42.46 and a 1 year high of $55.89.

HSBC (NYSE:HSBC) last released its quarterly earnings data on Monday, August 6th. The financial services provider reported $1.05 earnings per share (EPS) for the quarter, meeting the consensus estimate of $1.05. The company had revenue of $13.58 billion during the quarter. research analysts expect that HSBC will post 3.65 earnings per share for the current fiscal year.

Several institutional investors and hedge funds have recently made changes to their positions in the company. Parallel Advisors LLC lifted its position in shares of HSBC by 23.1% in the 2nd quarter. Parallel Advisors LLC now owns 6,096 shares of the financial services provider’s stock worth $287,000 after purchasing an additional 1,145 shares during the period. Earnest Partners LLC lifted its position in HSBC by 8.6% during the second quarter. Earnest Partners LLC now owns 15,974 shares of the financial services provider’s stock valued at $753,000 after acquiring an additional 1,263 shares during the last quarter. Strategic Financial Services Inc lifted its position in HSBC by 1.8% during the second quarter. Strategic Financial Services Inc now owns 76,892 shares of the financial services provider’s stock valued at $3,625,000 after acquiring an additional 1,336 shares during the last quarter. Tweedy Browne Co LLC lifted its position in HSBC by 1.0% during the second quarter. Tweedy Browne Co LLC now owns 143,537 shares of the financial services provider’s stock valued at $6,766,000 after acquiring an additional 1,368 shares during the last quarter. Finally, Bbva Compass Bancshares Inc. lifted its position in HSBC by 3.1% during the second quarter. Bbva Compass Bancshares Inc. now owns 47,483 shares of the financial services provider’s stock valued at $2,239,000 after acquiring an additional 1,407 shares during the last quarter. 2.57% of the stock is owned by hedge funds and other institutional investors.

About HSBC

HSBC Holdings plc provides banking and financial products and services. The company operates through Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Global Private Banking segments. The Retail Banking and Wealth Management segment offers personal banking products and services, mortgages and loans, credit cards, insurance and investment products, savings products, international services, and wealth solutions and financial planning services, as well as telephone, Internet, and mobile banking services.

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