California Public Employees Retirement System Decreases Stake in Hewlett Packard Enterprise Company $HPE

Key Points

• California Public Employees Retirement System reduced its Hewlett Packard Enterprise stake by 2.3% in the first quarter, selling 63,632 shares and ending with 2,665,918 shares valued at about $63.5 million.
• HPE reported strong quarterly results, posting EPS of $0.79 versus estimates of $0.54 and revenue of $10.68 billion, up 40% year over year and ahead of expectations.
• Analysts have turned more bullish on the stock, with several firms sharply raising price targets; the consensus rating is now Moderate Buy with an average target of $64.65.

California Public Employees Retirement System lowered its stake in Hewlett Packard Enterprise Company (NYSE:HPE - Free Report) by 2.3% in the 1st quarter, according to its most recent disclosure with the SEC. The fund owned 2,665,918 shares of the technology company's stock after selling 63,632 shares during the quarter. California Public Employees Retirement System owned 0.20% of Hewlett Packard Enterprise worth $63,476,000 at the end of the most recent quarter.

A number of other institutional investors have also recently made changes to their positions in the stock. Headlands Technologies LLC purchased a new position in shares of Hewlett Packard Enterprise in the second quarter worth $26,000. SJS Investment Consulting Inc. boosted its position in Hewlett Packard Enterprise by 159.5% during the 1st quarter. SJS Investment Consulting Inc. now owns 1,165 shares of the technology company's stock valued at $28,000 after buying an additional 716 shares during the period. Union Savings Bank purchased a new stake in Hewlett Packard Enterprise during the 4th quarter valued at $30,000. Reflection Asset Management bought a new stake in Hewlett Packard Enterprise in the 4th quarter worth $31,000. Finally, Thompson Investment Management Inc. bought a new stake in Hewlett Packard Enterprise in the 4th quarter worth $34,000. Hedge funds and other institutional investors own 80.78% of the company's stock.

Hewlett Packard Enterprise Stock Down 0.0%

Shares of NYSE HPE opened at $45.81 on Monday. The firm has a fifty day simple moving average of $43.63 and a two-hundred day simple moving average of $30.62. Hewlett Packard Enterprise Company has a 12 month low of $19.64 and a 12 month high of $64.25. The company has a current ratio of 1.09, a quick ratio of 0.75 and a debt-to-equity ratio of 0.72. The firm has a market capitalization of $60.67 billion, a PE ratio of 42.82, a price-to-earnings-growth ratio of 0.50 and a beta of 1.42.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) last announced its earnings results on Monday, June 1st. The technology company reported $0.79 earnings per share for the quarter, beating analysts' consensus estimates of $0.54 by $0.25. Hewlett Packard Enterprise had a net margin of 3.94% and a return on equity of 11.91%. The firm had revenue of $10.68 billion for the quarter, compared to analyst estimates of $9.78 billion. During the same quarter in the previous year, the firm posted ($0.82) EPS. The company's revenue for the quarter was up 40.0% compared to the same quarter last year. Hewlett Packard Enterprise has set its FY 2026 guidance at 3.350-3.450 EPS and its Q3 2026 guidance at 0.880-0.930 EPS. Equities analysts expect that Hewlett Packard Enterprise Company will post 2.88 earnings per share for the current year.

Hewlett Packard Enterprise Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 16th were issued a dividend of $0.1425 per share. The ex-dividend date was Tuesday, June 16th. This represents a $0.57 dividend on an annualized basis and a dividend yield of 1.2%. Hewlett Packard Enterprise's dividend payout ratio is 53.27%.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the stock. Barclays upped their price objective on shares of Hewlett Packard Enterprise from $28.00 to $67.00 and gave the company an "overweight" rating in a research note on Tuesday, June 2nd. Piper Sandler reissued a "neutral" rating and issued a $63.00 target price (up from $23.00) on shares of Hewlett Packard Enterprise in a research note on Tuesday, June 2nd. UBS Group boosted their price target on Hewlett Packard Enterprise from $25.00 to $65.00 and gave the company a "neutral" rating in a report on Tuesday, June 2nd. Bank of America upped their price target on Hewlett Packard Enterprise from $38.00 to $80.00 and gave the company a "buy" rating in a research report on Tuesday, June 2nd. Finally, Sanford C. Bernstein increased their price objective on Hewlett Packard Enterprise from $35.00 to $62.00 and gave the stock a "market perform" rating in a report on Tuesday, June 2nd. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat.com, Hewlett Packard Enterprise has an average rating of "Moderate Buy" and a consensus price target of $64.65.

Insider Transactions at Hewlett Packard Enterprise

In other news, EVP Fidelma Russo sold 17,001 shares of the firm's stock in a transaction that occurred on Tuesday, April 21st. The stock was sold at an average price of $27.97, for a total value of $475,517.97. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Marie Myers sold 93,583 shares of Hewlett Packard Enterprise stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $30.01, for a total value of $2,808,425.83. Following the sale, the chief financial officer owned 204,754 shares in the company, valued at $6,144,667.54. This represents a 31.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 135,851 shares of company stock worth $4,383,642 over the last quarter. Insiders own 0.44% of the company's stock.

Hewlett Packard Enterprise Company Profile

Hewlett Packard Enterprise (HPE) is an enterprise technology company that designs, develops and sells IT infrastructure, software and services for business and government customers. Its core offerings span servers, storage, networking, and related software, together with consulting, integration and support services aimed at modernizing and managing enterprise IT environments. HPE's product portfolio includes systems for traditional data centers as well as solutions for high-performance computing, edge computing and telecommunications infrastructure.

A major focus for HPE is hybrid cloud and consumption-based IT.

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