[Zacks] HSBC Holdings PLC (ADR) (NYSE:HSBC)(TREND ANALYSIS) has been shutting down branches and trimming pay packages due to pressure from investors to reduce costs and boost profits, the bank is now planning to repackage its loans into bonds and sell them to investors in the U.S. The news was first reported by Reuters.
The move will help HSBC improve investment banking profits along with shedding credit risk and arbitrage capital requirements. While the stringent regulations post-crisis have made keeping loans on the balance sheet costlier for the banks, originating assets from all over the world and repackaging as well as selling them will aid in lowering the amount of capital required to be set aside to cover potential losses.
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HSBC Holdings PLC (ADR) (NYSE:HSBC) stock is currently trading 23.66% below its 52-week-high, 4.32% above its 52-week-low. The 1-year stock price history is in the range of $36.78 – $50.26. HSBC Holdings PLC (ADR) (HSBC) has a price to earnings ratio of 10.23 versus Financial sector average of 13.86. HSBC stock price has underperformed the S&P 500 by 16.9%. The Diversified Banking Services company is currently valued at $160.51 billion, and its share price closed the last trading session at $38.37. The stock has a 50-day moving average of $39.7 and a 200-day moving average of $42.21.
HSBC Holdings PLC (ADR) (HSBC) current short interest stands at 3.51 million shares. It has decreased by 7% from the same period of last month. Around 1% of the company’s shares, which are float, are short sold. With a 10-days average volume of 2.17 million shares, the number of days required to cover the short positions stand at 1.7 days.
HSBC reported last quarter earnings on November 02. The Diversified Banking Services company announced earnings per share of $1.25 against a consensus Street estimate of $0, beating the average estimate by $1.25. This corresponds to a flat EPS compared to the same quarter of the previous fiscal year.
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There are currently twenty-two analysts that cover HSBC Holdings PLC (ADR) stock. Of those twenty-two, nine have a Buy rating, twelve have a Hold rating and one has a Sell rating. On a consensus basis this yields to an Overweight rating. The consensus target price stands at $586.02.
A recent analyst activity consisted of UBS upgrading their Neutral rating to on September 30. On the date of report, the stock closed at $37.4.
Goldman Sachs downgraded their Buy rating to Neutral on June 30. On the date of report, the stock closed at $43.76.
Another research firm was Bernstein who downgraded their Outperform rating to Market Perform on May 19. On the date of report, the stock closed at $46.24.
Company snapshot
HSBC Holdings plc is the holding company for the HSBC Group. The Company provides a variety of international banking and financial services, including retail and corporate banking, trade, trusteeship, securities, custody, capital markets, treasury, private and investment banking, and insurance. The Group operates worldwide.
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