Hewlett Packard Enterprise (NYSE:HPE) Raised to Strong-Buy at Zacks Research

Key Points

• Zacks Research upgraded Hewlett Packard Enterprise from hold to strong-buy, adding to a wave of mostly positive analyst actions on the stock.
• Several firms recently raised their price targets, including Morgan Stanley, Susquehanna, Loop Capital, and Goldman Sachs. Overall, HPE now has a Moderate Buy consensus rating and a target price of $64.65.
• HPE reported better-than-expected quarterly results, with EPS of $0.79 versus the $0.54 estimate and revenue of $10.68 billion versus $9.78 billion expected. The company also issued FY2026 guidance of $3.35 to $3.45 EPS.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) was upgraded by research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research report issued to clients and investors on Wednesday,Zacks.com reports.

A number of other analysts have also recently weighed in on the company. Weiss Ratings raised Hewlett Packard Enterprise from a "hold (c-)" rating to a "hold (c+)" rating in a research report on Wednesday, June 3rd. Morgan Stanley increased their price objective on Hewlett Packard Enterprise from $33.00 to $71.00 and gave the stock an "equal weight" rating in a research report on Tuesday, June 2nd. Susquehanna increased their price objective on Hewlett Packard Enterprise from $21.00 to $65.00 and gave the stock a "neutral" rating in a research report on Tuesday, June 2nd. Loop Capital raised Hewlett Packard Enterprise from a "hold" rating to a "buy" rating and increased their price objective for the stock from $23.00 to $75.00 in a research report on Tuesday, June 2nd. Finally, The Goldman Sachs Group increased their price objective on Hewlett Packard Enterprise from $32.00 to $79.00 and gave the stock a "buy" rating in a research report on Wednesday, June 3rd. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and nine have given a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $64.65.

Hewlett Packard Enterprise Stock Up 2.7%

Shares of NYSE HPE opened at $46.70 on Wednesday. The stock has a market cap of $61.84 billion, a PE ratio of 43.64, a price-to-earnings-growth ratio of 0.49 and a beta of 1.42. The company has a quick ratio of 0.75, a current ratio of 1.09 and a debt-to-equity ratio of 0.72. Hewlett Packard Enterprise has a 52-week low of $17.49 and a 52-week high of $64.25. The business has a 50-day moving average price of $33.54 and a 200 day moving average price of $26.43.

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 (EPS) for the quarter, beating analysts' consensus estimates of $0.54 by $0.25. The firm had revenue of $10.68 billion during the quarter, compared to analysts' expectations of $9.78 billion. Hewlett Packard Enterprise had a return on equity of 11.91% and a net margin of 3.94%.The business's revenue was up 40.0% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.82) EPS. 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 forecast that Hewlett Packard Enterprise will post 2.88 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Antonio F. Neri sold 150,000 shares of the firm's stock in a transaction that occurred on Friday, April 17th. The stock was sold at an average price of $26.50, for a total value of $3,975,000.00. Following the completion of the sale, the chief executive officer directly owned 1,687,329 shares of the company's stock, valued at $44,714,218.50. This trade represents a 8.16% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bethany Mayer sold 6,482 shares of the firm's stock in a transaction that occurred on 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 directly owned 8,018 shares of the company's stock, 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 ninety days, insiders sold 702,402 shares of company stock worth $18,440,171. Corporate insiders own 0.44% of the company's stock.

Institutional Trading of Hewlett Packard Enterprise

Hedge funds have recently modified their holdings of the business. SJS Investment Consulting Inc. lifted its holdings in shares of Hewlett Packard Enterprise by 159.5% in the 1st quarter. SJS Investment Consulting Inc. now owns 1,165 shares of the technology company's stock valued at $28,000 after buying an additional 716 shares during the period. Headlands Technologies LLC purchased a new position in Hewlett Packard Enterprise in the 2nd quarter valued at approximately $26,000. Union Savings Bank purchased a new position in Hewlett Packard Enterprise in the 4th quarter valued at approximately $30,000. Reflection Asset Management purchased a new position in Hewlett Packard Enterprise in the 4th quarter valued at approximately $31,000. Finally, Clearstead Trust LLC increased its stake in Hewlett Packard Enterprise by 93.8% in the 3rd 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 in the last quarter. 80.78% of the stock is owned by institutional investors and hedge funds.

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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