Zacks Investment Research Downgrades HSBC (HSBC) to Hold

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HSBC (NYSE:HSBC) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Monday.

According to Zacks, “Shares of HSBC have underperformed the industry on the NYSE in the past six months. Estimates have been stable lately ahead of the company's fourth quarter 2018 earnings release. The company is undertaking initiatives to improve its market share in the U.K. and China as well as strengthen digital capabilities globally. These efforts are expected to increase its exposure in emerging markets. Given a solid capital position, the company is expected to continue enhancing shareholder value through efficient capital deployment activities. However, dismal European economic growth, weak loan demand and Brexit-related concerns are expected to continue leading to muted revenues. Further, investments to improve market shares and efforts to strengthen operations are expected to lead to increase in expenses.”

HSBC has been the topic of several other reports. Citigroup lowered shares of HSBC from a “buy” rating to a “neutral” rating in a research note on Monday, October 22nd. Royal Bank of Canada lowered shares of HSBC from a “sector perform” rating to an “underperform” rating in a research note on Tuesday, October 23rd. Edward Jones lowered shares of HSBC from a “hold” rating to a “sell” rating in a research note on Wednesday, December 19th. ValuEngine raised shares of HSBC from a “sell” rating to a “hold” rating in a research note on Tuesday, December 25th. Finally, Barclays lowered shares of HSBC from an “equal weight” rating to an “underweight” rating in a research note on Tuesday, January 8th. Seven research analysts have rated the stock with a sell rating, four have assigned a hold rating and two have issued a buy rating to the company. The company presently has an average rating of “Hold” and an average target price of $47.00.

Shares of NYSE:HSBC traded down $0.05 during trading on Monday, reaching $41.70. The stock had a trading volume of 98,079 shares, compared to its average volume of 1,493,083. The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 0.42. HSBC has a 52 week low of $38.23 and a 52 week high of $54.15.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in HSBC. Segantii Capital Management Ltd acquired a new position in HSBC during the fourth quarter worth $165,445,000. Fisher Asset Management LLC raised its holdings in HSBC by 3.0% during the third quarter. Fisher Asset Management LLC now owns 15,726,602 shares of the financial services provider’s stock worth $691,813,000 after buying an additional 463,230 shares during the last quarter. First Republic Investment Management Inc. raised its holdings in HSBC by 172.7% during the third quarter. First Republic Investment Management Inc. now owns 389,464 shares of the financial services provider’s stock worth $8,703,000 after buying an additional 246,640 shares during the last quarter. Tocqueville Asset Management L.P. acquired a new position in HSBC during the fourth quarter worth $6,402,000. Finally, Capital Fund Management S.A. raised its holdings in HSBC by 1,585.6% during the third quarter. Capital Fund Management S.A. now owns 128,206 shares of the financial services provider’s stock worth $5,640,000 after buying an additional 120,600 shares during the last quarter. Hedge funds and other institutional investors own 2.62% of the company’s stock.

HSBC Company Profile

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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