Hewlett Packard Enterprise Company (NYSE:HPE) Given Consensus Rating of "Moderate Buy" by Brokerages

Key Points

• Analysts maintain a “Moderate Buy” consensus on HPE, with 11 buy, six hold and one strong-buy ratings. The average 12-month price target is $67.31, above the reported $48.01 share price.
• HPE’s latest quarterly results exceeded expectations, with adjusted earnings of $0.79 per share versus the $0.54 consensus and revenue of $10.68 billion, up 40% year over year.
• The company declared a quarterly dividend of $0.1425 per share, equivalent to an annualized $0.57 payout and a 1.2% yield. Insiders sold 118,850 shares worth about $3.9 million during the quarter, while institutional investors own 80.78% of the stock.

Hewlett Packard Enterprise Company (NYSE:HPE - Get Free Report) has received an average recommendation of "Moderate Buy" from the eighteen ratings firms that are presently covering the company, Marketbeat reports. Six research analysts have rated the stock with a hold recommendation, eleven have given a buy recommendation and one has given a strong buy recommendation to the company. The average 12 month target price among brokerages that have covered the stock in the last year is $67.3125.

HPE has been the subject of a number of analyst reports. Piper Sandler reissued a "neutral" rating and issued a $63.00 price objective (up from $23.00) on shares of Hewlett Packard Enterprise in a research report on Tuesday, June 2nd. Argus lifted their target price on Hewlett Packard Enterprise from $30.00 to $70.00 and gave the stock a "buy" rating in a research report on Wednesday, June 3rd. Sanford C. Bernstein boosted their price target on Hewlett Packard Enterprise from $35.00 to $62.00 and gave the stock a "market perform" rating in a research note on Tuesday, June 2nd. Zacks Research upgraded Hewlett Packard Enterprise from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, June 10th. Finally, Raymond James Financial lifted their price objective on Hewlett Packard Enterprise from $29.00 to $74.00 and gave the stock an "outperform" rating in a report on Tuesday, June 2nd.

Hewlett Packard Enterprise Trading Up 0.2%

NYSE HPE opened at $48.01 on Monday. The company's fifty day simple moving average is $46.37 and its 200-day simple moving average is $32.28. Hewlett Packard Enterprise has a 52 week low of $19.64 and a 52 week 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 stock has a market cap of $63.58 billion, a P/E ratio of 44.87, a PEG ratio of 0.52 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 the consensus estimate 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 business had revenue of $10.68 billion during the quarter, compared to the consensus estimate of $9.78 billion. During the same period in the prior year, the firm earned ($0.82) earnings per share. The business'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 research analysts predict that Hewlett Packard Enterprise will post 2.88 EPS for the current fiscal year.

Hewlett Packard Enterprise Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 16th were given a dividend of $0.1425 per share. The ex-dividend date of this dividend 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 (DPR) is presently 53.27%.

Insider Buying and Selling

In related news, CFO Marie Myers sold 93,583 shares of Hewlett Packard Enterprise stock in a transaction 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 completion of the sale, the chief financial officer owned 204,754 shares in the company, valued at approximately $6,144,667.54. The trade was a 31.37% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bethany Mayer sold 6,482 shares of the company's stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $29.10, for a total transaction of $188,626.20. Following the completion of the sale, the director directly owned 8,018 shares in the company, valued at $233,323.80. This represents a 44.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 118,850 shares of company stock worth $3,908,125. Insiders own 0.44% of the company's stock.

Hedge Funds Weigh In On Hewlett Packard Enterprise

Several large investors have recently modified their holdings of HPE. Empowered Funds LLC increased its holdings in Hewlett Packard Enterprise by 317.3% in the first quarter. Empowered Funds LLC now owns 149,810 shares of the technology company's stock valued at $2,312,000 after buying an additional 113,906 shares during the last quarter. Geneos Wealth Management Inc. lifted its holdings in Hewlett Packard Enterprise by 44.7% during the 1st quarter. Geneos Wealth Management Inc. now owns 4,456 shares of the technology company's stock worth $69,000 after buying an additional 1,377 shares during the last quarter. Brown Advisory Inc. lifted its holdings in Hewlett Packard Enterprise by 4.4% during the 2nd quarter. Brown Advisory Inc. now owns 23,593 shares of the technology company's stock worth $482,000 after buying an additional 996 shares during the last quarter. Jump Financial LLC grew its position in shares of Hewlett Packard Enterprise by 25.8% in the 2nd quarter. Jump Financial LLC now owns 15,662 shares of the technology company's stock worth $320,000 after acquiring an additional 3,215 shares in the last quarter. Finally, WINTON GROUP Ltd acquired a new position in shares of Hewlett Packard Enterprise in the 2nd quarter worth approximately $207,000. Institutional investors own 80.78% 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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