Assenagon Asset Management S.A. has significantly increased its holdings in HDFC Bank by nearly 270%, joining other institutional investors, as market reactions are mixed despite strong quarterly earnings.
Assenagon Asset Management S.A. has sharply expanded its stake in HDFC Bank, lifting its holdings by 269.6% in the second quarter, according to a recent filing with the US Securities and Exchange Commission. The fund now owns 1,746,160 shares of the Indian lender’s American depositary receipts, worth $45.1 million at the end of the period.
The move comes as other institutional investors also adjusted their positions in HDFC Bank. Elliott Investment Management increased its stake by 267.7% in the first quarter, while KBC Group and ABN Amro Investment Solutions also added to their holdings, according to the latest disclosures. MarketBeat said institutional investors and hedge funds collectively own 17.61% of the stock.
HDFC Bank’s shares were trading lower on Friday at $23.60, leaving the stock near the bottom of its 52-week range of $22.66 to $38.01. The bank has a market value of $120.4 billion and trades at 13.88 times earnings, with a price-to-earnings-growth ratio of 1.11.
The bank reported better-than-expected quarterly earnings on July 18, posting earnings per share of $0.40 versus analysts’ estimate of $0.38. Revenue came in at $14.02 billion, while the bank recorded a net margin of 15.96% and return on equity of 11.84%. Despite that result, analyst sentiment remains mixed: Zacks Research upgraded the stock from “strong sell” to “hold”, Wall Street Zen cut it to “sell” and Weiss Ratings moved it up to “hold (c-)”. MarketBeat said the consensus view is currently “hold”.
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