Hewlett Packard Enterprise (NYSE:HPE) Earns Neutral Rating from Piper Sandler

Key Points

• Piper Sandler reiterated a neutral rating on Hewlett Packard Enterprise, but raised its price target sharply to $63 from $23, implying about 15.7% upside from the current share price.
• HPE posted a strong fiscal second quarter, reporting $0.79 EPS versus the $0.54 consensus and $10.68 billion in revenue versus expectations of $9.78 billion. Revenue jumped 40% year over year as the company benefited from demand in AI servers and related infrastructure.
• Following the earnings report, several major analysts lifted their price targets materially, and the stock surged to $54.46 on heavy trading volume. Management also raised its full-year and Q3 guidance, reinforcing optimism around HPE’s growth momentum.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report)'s stock had its "neutral" rating reissued by analysts at Piper Sandler in a research report issued on Tuesday,Benzinga reports. They currently have a $63.00 price target on the technology company's stock, up from their prior price target of $23.00. Piper Sandler's price target indicates a potential upside of 15.69% from the company's current price.

HPE has been the subject of several other research reports. Morgan Stanley increased their target price on shares of Hewlett Packard Enterprise from $33.00 to $71.00 and gave the stock an "equal weight" rating in a research note on Tuesday. Truist Financial reiterated a "buy" rating and set a $69.00 price target (up from $31.00) on shares of Hewlett Packard Enterprise in a research report on Tuesday. Bank of America lifted their price target on shares of Hewlett Packard Enterprise from $38.00 to $80.00 and gave the company a "buy" rating in a research report on Tuesday. Barclays raised their price objective on shares of Hewlett Packard Enterprise from $28.00 to $67.00 and gave the stock an "overweight" rating in a research note on Tuesday. Finally, Citigroup raised their price objective on shares of Hewlett Packard Enterprise from $39.00 to $70.00 and gave the stock a "buy" rating in a research note on Tuesday. Eleven investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. Based on data from MarketBeat, Hewlett Packard Enterprise has a consensus rating of "Moderate Buy" and an average price target of $59.47.

Hewlett Packard Enterprise Stock Up 15.0%

Shares of Hewlett Packard Enterprise stock traded up $7.09 during trading hours on Tuesday, reaching $54.46. 106,917,826 shares of the company were exchanged, compared to its average volume of 19,915,974. Hewlett Packard Enterprise has a 1 year low of $17.02 and a 1 year high of $47.97. The stock's fifty day moving average is $29.23 and its 200 day moving average is $24.80. The company has a debt-to-equity ratio of 0.71, a quick ratio of 0.75 and a current ratio of 1.03. The firm has a market cap of $72.26 billion, a PE ratio of -249.32, a PEG ratio of 1.10 and a beta of 1.28.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) last posted its earnings results on Monday, June 1st. The technology company reported $0.79 EPS for the quarter, beating the consensus estimate of $0.54 by $0.25. Hewlett Packard Enterprise had a positive return on equity of 9.93% and a negative net margin of 0.41%.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 prior year, the company posted ($0.82) earnings per share. Hewlett Packard Enterprise'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. As a group, equities research analysts forecast that Hewlett Packard Enterprise will post 1.97 earnings per share for the current year.

Insider Transactions at Hewlett Packard Enterprise

In other news, Director Bethany Mayer sold 6,482 shares of the business's stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $29.10, for a total value of $188,626.20. Following the completion of the sale, the director owned 8,018 shares of the company's stock, valued at approximately $233,323.80. The trade was a 44.70% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Antonio F. Neri sold 264,432 shares of the business's stock in a transaction dated Wednesday, March 25th. The shares were sold at an average price of $25.18, for a total transaction of $6,658,397.76. Following the sale, the chief executive officer directly owned 1,837,329 shares of the company's stock, valued at approximately $46,263,944.22. This represents a 12.58% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 702,402 shares of company stock worth $18,440,171 over the last three months. Insiders own 0.44% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Empowered Funds LLC lifted its stake in Hewlett Packard Enterprise by 317.3% during the first quarter. Empowered Funds LLC now owns 149,810 shares of the technology company's stock valued at $2,312,000 after purchasing an additional 113,906 shares during the last quarter. Geneos Wealth Management Inc. lifted its stake in Hewlett Packard Enterprise by 44.7% during the first quarter. Geneos Wealth Management Inc. now owns 4,456 shares of the technology company's stock valued at $69,000 after purchasing an additional 1,377 shares during the last quarter. Brown Advisory Inc. lifted its stake in Hewlett Packard Enterprise by 4.4% during the second quarter. Brown Advisory Inc. now owns 23,593 shares of the technology company's stock valued at $482,000 after purchasing an additional 996 shares during the last quarter. Jump Financial LLC lifted its stake in Hewlett Packard Enterprise by 25.8% during the second quarter. Jump Financial LLC now owns 15,662 shares of the technology company's stock valued at $320,000 after purchasing an additional 3,215 shares during the last quarter. Finally, WINTON GROUP Ltd acquired a new stake in Hewlett Packard Enterprise during the second quarter valued at approximately $207,000. 80.78% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Hewlett Packard Enterprise

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

• Positive Sentiment: HPE reported fiscal Q2 earnings of $0.79 per share, well above the $0.54 consensus, on revenue of $10.68 billion versus expectations of about $9.78 billion. HPE Reports Fiscal 2026 Second Quarter Results
• Positive Sentiment: Management raised full-year and Q3 guidance materially above Wall Street estimates, signaling continued momentum in AI servers, networking, and data center spending. HPE expects to achieve 2028 financial targets this year after record quarter on AI boom
• Positive Sentiment: Multiple analysts turned more bullish after the report, with several sharply raising price targets, including Truist to $69, Citigroup to $70, Barclays to $67, Morgan Stanley to $71, JPMorgan to $68, and Bank of America to $80. Analyst price target updates
• Positive Sentiment: HPE also launched new AI-focused server hardware, including a CPU server with NVIDIA Vera CPU, reinforcing the company’s positioning in agentic AI infrastructure. HPE Introduces CPU Server with NVIDIA Vera CPU, Purpose-built for Agentic AI
• Neutral Sentiment: HPE declared a quarterly dividend of $0.1425 per share, which provides a modest income component for shareholders. Dividend announcement
• Neutral Sentiment: The company appointed Chris Hsu of Elliott Investment Management to its board, a governance update that may support strategic execution but is not a direct operating catalyst. HPE Names Chris Hsu to Board of Directors

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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