Hsbc Holdings PLC Reduces Stock Holdings in Hewlett Packard Enterprise Company $HPE

Key Points

• HSBC Holdings PLC cut its Hewlett Packard Enterprise stake by 5.1% in the first quarter, selling 400,670 shares and ending with about 7.43 million shares worth roughly $176.7 million.
• Wall Street sentiment on HPE improved sharply, with several analysts raising price targets and the consensus rating landing at Moderate Buy with an average target price of $64.65.
• The company posted a strong quarterly update, beating EPS and revenue estimates, while also recently paying a quarterly dividend of $0.1425 per share for a 1.2% yield.

Hsbc Holdings PLC lessened its stake in shares of Hewlett Packard Enterprise Company (NYSE:HPE - Free Report) by 5.1% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 7,426,168 shares of the technology company's stock after selling 400,670 shares during the quarter. Hsbc Holdings PLC owned about 0.56% of Hewlett Packard Enterprise worth $176,680,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently modified their holdings of HPE. Headlands Technologies LLC purchased a new stake in Hewlett Packard Enterprise in the second quarter valued at $26,000. SJS Investment Consulting Inc. increased its position in shares of Hewlett Packard Enterprise by 159.5% during the first quarter. SJS Investment Consulting Inc. now owns 1,165 shares of the technology company's stock worth $28,000 after purchasing an additional 716 shares in the last quarter. Union Savings Bank acquired a new stake in shares of Hewlett Packard Enterprise during the fourth quarter worth about $30,000. Reflection Asset Management purchased a new stake in shares of Hewlett Packard Enterprise in the 4th quarter valued at about $31,000. Finally, Thompson Investment Management Inc. acquired a new stake in shares of Hewlett Packard Enterprise in the 4th quarter valued at about $34,000. 80.78% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities research analysts have weighed in on the company. Argus boosted their price objective on Hewlett Packard Enterprise from $30.00 to $70.00 and gave the company a "buy" rating in a research note on Wednesday, June 3rd. Barclays lifted their target price on shares of Hewlett Packard Enterprise from $28.00 to $67.00 and gave the company an "overweight" rating in a report on Tuesday, June 2nd. Wells Fargo & Company upped their price target on shares of Hewlett Packard Enterprise from $26.00 to $67.00 and gave the company an "equal weight" rating in a research report on Tuesday, June 2nd. Susquehanna increased their price target on shares of Hewlett Packard Enterprise from $21.00 to $65.00 and gave the stock a "neutral" rating in a research note on Tuesday, June 2nd. Finally, Zacks Research raised shares of Hewlett Packard Enterprise from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, June 10th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, Hewlett Packard Enterprise has a consensus rating of "Moderate Buy" and an average target price of $64.65.

Insider Buying and Selling

In other news, EVP Fidelma Russo sold 17,001 shares of Hewlett Packard Enterprise stock in a transaction dated Tuesday, April 21st. The shares were sold at an average price of $27.97, for a total value of $475,517.97. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Neil B. Macdonald sold 24,251 shares of the business's stock in a transaction dated Monday, April 20th. The stock was sold at an average price of $27.01, for a total transaction of $655,019.51. Following the transaction, the executive vice president owned 32,243 shares in the company, valued at approximately $870,883.43. This trade represents a 42.93% 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. In the last three months, insiders have sold 160,102 shares of company stock worth $5,038,662. 0.44% of the stock is currently owned by insiders.

Hewlett Packard Enterprise Trading Up 1.5%

Shares of HPE stock opened at $45.81 on Friday. The company has a market capitalization of $60.67 billion, a P/E ratio of 42.82, a price-to-earnings-growth ratio of 0.50 and a beta of 1.42. 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 business's 50 day moving average is $43.63 and its two-hundred day moving average is $30.58. Hewlett Packard Enterprise Company has a twelve month low of $19.64 and a twelve month high of $64.25.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) last released its quarterly earnings results on Monday, June 1st. The technology company reported $0.79 EPS for the quarter, topping the consensus estimate 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 business had revenue of $10.68 billion during the quarter, compared to analysts' expectations of $9.78 billion. During the same quarter in the prior year, the business earned ($0.82) earnings per share. The company's quarterly 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. Equities analysts forecast that Hewlett Packard Enterprise Company will post 2.88 EPS for the current year.

Hewlett Packard Enterprise Announces Dividend

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

Hewlett Packard Enterprise 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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