Hewlett Packard Enterprise (NYSE:HPE) Downgraded by Wall Street Zen to "Hold"

Key Points

• Wall Street Zen downgraded Hewlett Packard Enterprise from “buy” to “hold,” even as the broader analyst community remains somewhat constructive with a consensus “Moderate Buy” rating and an average price target of $27.88.
• HPE’s latest quarterly results beat expectations, with EPS of $0.79 versus $0.54 expected and revenue of $10.68 billion versus $9.78 billion projected, driven by 40% year-over-year sales growth.
• The company raised guidance and highlighted AI-related strength, saying networking revenue surged 148% and that it now expects to hit its 2028 financial targets two years early, underscoring confidence in AI infrastructure demand.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Tuesday.

Several other research analysts also recently issued reports on the stock. Morgan Stanley upped their price target on shares of Hewlett Packard Enterprise from $25.00 to $33.00 and gave the stock an "equal weight" rating in a report on Thursday, May 21st. Bank of America upped their price target on shares of Hewlett Packard Enterprise from $29.00 to $32.00 and gave the stock a "buy" rating in a report on Tuesday, March 10th. Raymond James Financial reiterated an "outperform" rating and set a $29.00 price target (down from $30.00) on shares of Hewlett Packard Enterprise in a report on Monday, April 13th. Truist Financial began coverage on Hewlett Packard Enterprise in a report on Tuesday, March 31st. They issued a "buy" rating and a $31.00 price objective for the company. Finally, Citigroup increased their price objective on Hewlett Packard Enterprise from $27.00 to $39.00 and gave the company a "buy" rating in a report on Thursday, May 14th. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and eleven have given a Hold rating to the stock. According to MarketBeat, Hewlett Packard Enterprise has a consensus rating of "Moderate Buy" and an average price target of $27.88.

Hewlett Packard Enterprise Stock Up 10.1%

Shares of NYSE:HPE opened at $47.37 on Tuesday. The company has a fifty day moving average of $29.23 and a 200-day moving average of $24.80. The company has a market capitalization of $62.85 billion, a PE ratio of -249.32, a price-to-earnings-growth ratio of 1.10 and a beta of 1.28. The company has a debt-to-equity ratio of 0.71, a quick ratio of 0.75 and a current ratio of 1.03. Hewlett Packard Enterprise has a 52-week low of $17.02 and a 52-week high of $47.97.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) last announced its quarterly earnings results on Monday, June 1st. The technology company reported $0.79 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.54 by $0.25. The company had revenue of $10.68 billion during the quarter, compared to the consensus estimate of $9.78 billion. Hewlett Packard Enterprise had a negative net margin of 0.41% and a positive return on equity of 9.93%. The company's revenue for the quarter was up 40.0% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.82) earnings per share. 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, equities analysts predict that Hewlett Packard Enterprise will post 1.97 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Bethany Mayer sold 6,482 shares of the firm's stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $29.10, for a total value 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 trade represents a 44.70% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Fidelma Russo sold 17,001 shares of the firm's 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. 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 sold a total of 702,402 shares of company stock worth $18,440,171 over the last 90 days. 0.44% of the stock is owned by company insiders.

Institutional Trading of Hewlett Packard Enterprise

Several large investors have recently made changes to their positions in HPE. Empowered Funds LLC grew its stake in shares of Hewlett Packard Enterprise by 317.3% in the 1st 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 period. Geneos Wealth Management Inc. lifted its position in Hewlett Packard Enterprise by 44.7% in the 1st quarter. Geneos Wealth Management Inc. now owns 4,456 shares of the technology company's stock valued at $69,000 after acquiring an additional 1,377 shares in the last quarter. Brown Advisory Inc. lifted its position in Hewlett Packard Enterprise by 4.4% in the 2nd quarter. Brown Advisory Inc. now owns 23,593 shares of the technology company's stock valued at $482,000 after acquiring an additional 996 shares in the last quarter. Jump Financial LLC lifted its position in Hewlett Packard Enterprise by 25.8% in the 2nd quarter. Jump Financial LLC now owns 15,662 shares of the technology company's stock valued at $320,000 after acquiring an additional 3,215 shares in the last quarter. Finally, WINTON GROUP Ltd bought a new position in Hewlett Packard Enterprise in the 2nd quarter valued at about $207,000. 80.78% of the stock is currently owned by institutional investors and hedge funds.

Hewlett Packard Enterprise News Summary

Here are the key news stories impacting Hewlett Packard Enterprise this week:

• Positive Sentiment: HPE reported adjusted EPS of $0.79, well above Wall Street’s $0.54 estimate, showing stronger-than-expected profitability. Article Title
• Positive Sentiment: Revenue came in at $10.68 billion versus $9.78 billion expected, with year-over-year sales growth of 40%, reinforcing that demand remains strong. Read More.
• Positive Sentiment: The company said networking revenue surged 148%, highlighting robust AI infrastructure and networking demand as customers build out AI data centers. Article Title
• Positive Sentiment: Management raised guidance sharply, with Q3 EPS and revenue outlooks both above consensus, and also increased full-year FY2026 targets. Article Title
• Positive Sentiment: HPE said it now expects to reach its 2028 financial targets two years early, reflecting confidence in AI-driven demand and execution. Article Title
• Positive Sentiment: HPE also announced a new NVIDIA Vera CPU-based server designed for agentic AI workloads, which supports the company’s push deeper into AI infrastructure. Article Title
• Neutral Sentiment: HPE named Elliott partner Chris Hsu to its board, a governance update that is not likely to drive near-term results by itself. Article Title

About Hewlett Packard Enterprise

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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