Erste Group Bank Issues Optimistic Outlook for HSBC Earnings

HSBC Holdings plc (NYSE:HSBC) – Research analysts at Erste Group Bank lifted their FY2026 earnings estimates for HSBC in a research report issued on Thursday, June 25th. Erste Group Bank analyst S. Lingnau now forecasts that the financial services provider will post earnings of $8.70 per share for the year, up from their prior forecast of $8.50. The consensus estimate for HSBC’s current full-year earnings is $8.60 per share.

HSBC (NYSE:HSBC) last issued its earnings results on Tuesday, March 31st. The financial services provider reported $0.44 earnings per share (EPS) for the quarter. HSBC had a return on equity of 13.35% and a net margin of 16.06%.The company had revenue of $19.12 billion during the quarter.

A number of other brokerages have also commented on HSBC. Weiss Ratings lowered HSBC from a “hold (c+)” rating to a “hold (c)” rating in a research report on Wednesday, May 6th. Royal Bank Of Canada restated a “sector perform” rating on shares of HSBC in a research note on Thursday, May 14th. BNP Paribas Exane lowered shares of HSBC from an “outperform” rating to a “neutral” rating in a research note on Tuesday, April 14th. The Goldman Sachs Group initiated coverage on shares of HSBC in a research report on Thursday, March 26th. They set a “buy” rating for the company. Finally, Zacks Research lowered shares of HSBC from a “strong-buy” rating to a “hold” rating in a report on Tuesday, May 5th. Five research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Hold”.

HSBC Stock Up 1.4%

Shares of HSBC stock opened at $95.08 on Tuesday. HSBC has a fifty-two week low of $59.92 and a fifty-two week high of $96.90. The firm has a market capitalization of $326.78 billion, a PE ratio of 15.59, a P/E/G ratio of 0.83 and a beta of 0.56. The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.92 and a current ratio of 0.92. The stock’s 50-day simple moving average is $91.88 and its 200-day simple moving average is $86.65.

Hedge Funds Weigh In On HSBC

Several institutional investors and hedge funds have recently modified their holdings of the business. Fisher Asset Management LLC raised its holdings in HSBC by 2.3% in the 4th quarter. Fisher Asset Management LLC now owns 17,800,748 shares of the financial services provider’s stock worth $1,400,385,000 after purchasing an additional 402,288 shares during the period. Dimensional Fund Advisors LP increased its position in shares of HSBC by 1.8% in the third quarter. Dimensional Fund Advisors LP now owns 10,575,644 shares of the financial services provider’s stock valued at $750,659,000 after buying an additional 185,073 shares in the last quarter. Morgan Stanley raised its stake in shares of HSBC by 15.3% during the 4th quarter. Morgan Stanley now owns 7,483,883 shares of the financial services provider’s stock worth $588,757,000 after buying an additional 993,473 shares during the period. Northern Trust Corp raised its stake in shares of HSBC by 4.7% during the 3rd quarter. Northern Trust Corp now owns 3,045,134 shares of the financial services provider’s stock worth $216,144,000 after buying an additional 136,342 shares during the period. Finally, Bank of America Corp DE lifted its position in shares of HSBC by 5.5% during the 1st quarter. Bank of America Corp DE now owns 2,385,883 shares of the financial services provider’s stock valued at $196,811,000 after buying an additional 124,201 shares in the last quarter. Hedge funds and other institutional investors own 1.48% of the company’s stock.

Insider Transactions at HSBC

In related news, insider Daniel Scott Palomaki sold 23,123 shares of the firm’s stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $18.11, for a total transaction of $418,757.53. Following the sale, the insider owned 4,973 shares in the company, valued at approximately $90,061.03. This trade represents a 82.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 0.01% of the company’s stock.

HSBC Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Friday, May 15th were paid a $0.50 dividend. This represents a $2.00 annualized dividend and a dividend yield of 2.1%. The ex-dividend date was Friday, May 15th. HSBC’s payout ratio is currently 32.46%.

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.