Hodges Capital Management Inc. Trims Stake in Hewlett Packard Enterprise Company $HPE

Key Points

• Hodges Capital Management cut its HPE stake by 47.2% in the fourth quarter, though it still held 312,257 shares worth about $7.5 million.
• Insiders have been selling shares as well, including CEO Antonio F. Neri and Director Bethany Mayer, with total insider sales reaching 702,402 shares over the last 90 days.
• HPE reported a strong quarter, with EPS of $0.79 versus the $0.54 estimate and revenue of $10.68 billion, while analysts remain generally upbeat with a Moderate Buy rating and an average target price of $64.65.

Hodges Capital Management Inc. reduced its holdings in Hewlett Packard Enterprise Company (NYSE:HPE - Free Report) by 47.2% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 312,257 shares of the technology company's stock after selling 278,592 shares during the period. Hodges Capital Management Inc.'s holdings in Hewlett Packard Enterprise were worth $7,500,000 at the end of the most recent quarter.

Several other institutional investors also recently bought and sold shares of HPE. Headlands Technologies LLC acquired a new stake in Hewlett Packard Enterprise in the second quarter valued at approximately $26,000. Clearstead Trust LLC grew its holdings in Hewlett Packard Enterprise by 93.8% in the third quarter. Clearstead Trust LLC now owns 1,291 shares of the technology company's stock valued at $32,000 after purchasing an additional 625 shares during the period. Thompson Investment Management Inc. acquired a new stake in Hewlett Packard Enterprise in the fourth quarter valued at approximately $34,000. JFS Wealth Advisors LLC grew its holdings in Hewlett Packard Enterprise by 40.5% in the fourth quarter. JFS Wealth Advisors LLC now owns 1,565 shares of the technology company's stock valued at $38,000 after purchasing an additional 451 shares during the period. Finally, WealthCollab LLC grew its holdings in Hewlett Packard Enterprise by 121.8% in the fourth quarter. WealthCollab LLC now owns 1,657 shares of the technology company's stock valued at $40,000 after purchasing an additional 910 shares during the period. 80.78% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In related news, CEO Antonio F. Neri sold 264,432 shares of Hewlett Packard Enterprise stock in a transaction that occurred on Wednesday, March 25th. The stock was sold at an average price of $25.18, for a total transaction of $6,658,397.76. Following the transaction, the chief executive officer owned 1,837,329 shares in the company, valued at approximately $46,263,944.22. This trade represents a 12.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Bethany Mayer sold 6,482 shares of Hewlett Packard Enterprise stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $29.10, for a total value of $188,626.20. Following the transaction, the director owned 8,018 shares in the company, valued at approximately $233,323.80. The trade was a 44.70% decrease in their position. 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 702,402 shares of company stock valued at $18,440,171 in the last 90 days. 0.44% of the stock is owned by insiders.

Hewlett Packard Enterprise Stock Performance

Shares of Hewlett Packard Enterprise stock opened at $45.50 on Thursday. Hewlett Packard Enterprise Company has a one year low of $17.49 and a one year high of $64.25. The company has a market cap of $60.25 billion, a price-to-earnings ratio of 42.52, a PEG ratio of 0.77 and a beta of 1.42. The company has a debt-to-equity ratio of 0.72, a quick ratio of 0.75 and a current ratio of 1.09. The business's 50 day moving average price is $33.08 and its 200 day moving average price is $26.25.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) last announced its quarterly earnings data on Monday, June 1st. The technology company reported $0.79 EPS for the quarter, topping analysts' consensus estimates of $0.54 by $0.25. Hewlett Packard Enterprise had a return on equity of 11.91% and a net margin of 3.94%.The firm had revenue of $10.68 billion for the quarter, compared to the consensus estimate of $9.78 billion. During the same quarter last year, the business posted ($0.82) earnings per share. The firm's revenue 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. On average, research analysts predict that Hewlett Packard Enterprise Company will post 1.97 EPS for the current year.

Hewlett Packard Enterprise Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Tuesday, June 16th will be given a dividend of $0.1425 per share. The ex-dividend date is Tuesday, June 16th. This represents a $0.57 dividend on an annualized basis and a yield of 1.3%. Hewlett Packard Enterprise's dividend payout ratio (DPR) is presently 53.27%.

Wall Street Analysts Forecast Growth

Several analysts have commented on HPE shares. Truist Financial reissued a "buy" rating and issued a $69.00 price objective (up from $31.00) on shares of Hewlett Packard Enterprise in a report on Tuesday, June 2nd. Wells Fargo & Company raised their price objective on Hewlett Packard Enterprise from $26.00 to $67.00 and gave the company an "equal weight" rating in a report on Tuesday, June 2nd. Barclays raised their price objective on Hewlett Packard Enterprise from $28.00 to $67.00 and gave the company an "overweight" rating in a report on Tuesday, June 2nd. Sanford C. Bernstein raised their price objective on Hewlett Packard Enterprise from $35.00 to $62.00 and gave the company a "market perform" rating in a report on Tuesday, June 2nd. Finally, Loop Capital raised Hewlett Packard Enterprise from a "hold" rating to a "buy" rating and lifted their price target for the stock from $23.00 to $75.00 in a research note on Tuesday, June 2nd. Eleven investment analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $64.65.

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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