HSBC Holdings Shares Owned By Insiders vs. Return On Equity
| HSBA Stock | 760.80 4.30 0.56% |
For HSBC Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of HSBC Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well HSBC Holdings PLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between HSBC Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of HSBC Holdings PLC over time as well as its relative position and ranking within its peers.
HSBC |
HSBC Holdings PLC Return On Equity vs. Shares Owned By Insiders Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining HSBC Holdings's current stock value. Our valuation model uses many indicators to compare HSBC Holdings value to that of its competitors to determine the firm's financial worth. HSBC Holdings PLC is rated below average in shares owned by insiders category among its peers. It is rated # 5 in return on equity category among its peers reporting about 0.38 of Return On Equity per Shares Owned By Insiders. The ratio of Shares Owned By Insiders to Return On Equity for HSBC Holdings PLC is roughly 2.61 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the HSBC Holdings' earnings, one of the primary drivers of an investment's value.HSBC Return On Equity vs. Shares Owned By Insiders
Shares Owned by Insiders show the percentage of outstanding shares owned by insiders (such as principal officers or members of the board of directors) or private individuals and entities with over 5% of the total shares outstanding. Company executives or private individuals with access to insider information share information about a firm's operations that is not available to the general public.
HSBC Holdings |
| = | 0.33 % |
Although the research on effects of insider trading on prices and volatility is still relatively inconclusive, and investors are advised to pay close attention to the distribution of equities among company's stakeholders to avoid many problems associated with the disclosure of price-sensitive information.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
HSBC Holdings |
| = | 0.13 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
HSBC Return On Equity Comparison
HSBC Holdings is currently under evaluation in return on equity category among its peers.
HSBC Holdings Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in HSBC Holdings, profitability is also one of the essential criteria for including it into their portfolios because, without profit, HSBC Holdings will eventually generate negative long term returns. The profitability progress is the general direction of HSBC Holdings' change in net profit over the period of time. It can combine multiple indicators of HSBC Holdings, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 8.8 B | 17.6 B | |
| Income Before Tax | 30.3 B | 31.9 B | |
| Income Tax Expense | 5.8 B | 3.3 B | |
| Operating Income | 26.1 B | 29.6 B | |
| Total Other Income Expense Net | 4.2 B | 4.4 B | |
| Net Income | 23.5 B | 15.2 B | |
| Net Income Applicable To Common Shares | 17 B | 11.7 B | |
| Net Income From Continuing Ops | 24.6 B | 14.9 B | |
| Net Interest Income | 35.8 B | 33.2 B | |
| Interest Income | 100.9 B | 58 B | |
| Change To Netincome | 60.2 B | 63.2 B |
HSBC Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on HSBC Holdings. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of HSBC Holdings position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the HSBC Holdings' important profitability drivers and their relationship over time.
Use HSBC Holdings in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if HSBC Holdings position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in HSBC Holdings will appreciate offsetting losses from the drop in the long position's value.HSBC Holdings Pair Trading
HSBC Holdings PLC Pair Trading Analysis
The ability to find closely correlated positions to HSBC Holdings could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace HSBC Holdings when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back HSBC Holdings - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling HSBC Holdings PLC to buy it.
The correlation of HSBC Holdings is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as HSBC Holdings moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if HSBC Holdings PLC moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for HSBC Holdings can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your HSBC Holdings position
In addition to having HSBC Holdings in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Natural Foods
Companies producing natural foods including dairy products and different types of meets. The Natural Foods theme has 37 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Natural Foods Theme or any other thematic opportunities.
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Additional Tools for HSBC Stock Analysis
When running HSBC Holdings' price analysis, check to measure HSBC Holdings' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy HSBC Holdings is operating at the current time. Most of HSBC Holdings' value examination focuses on studying past and present price action to predict the probability of HSBC Holdings' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move HSBC Holdings' price. Additionally, you may evaluate how the addition of HSBC Holdings to your portfolios can decrease your overall portfolio volatility.