Hewlett Packard Enterprise (NYSE:HPE) Sets New 52-Week High - Still a Buy?

Key Points

• Hewlett Packard Enterprise hit a new 52-week high, trading as high as $31.46 after last closing at $31.35, reflecting strong recent momentum in the stock.
• Analysts remain generally positive on HPE, with several firms issuing Buy ratings and the consensus view listed as Moderate Buy, though the average price target of $26.71 is below the current share price.
• The company beat quarterly EPS expectations and raised guidance, reporting $0.65 EPS versus $0.59 expected and revenue growth of 18.4% year over year, while insiders, including the CFO and CEO, have recently sold shares.

Hewlett Packard Enterprise Company (NYSE:HPE - Get Free Report)'s share price reached a new 52-week high on Monday . The company traded as high as $31.46 and last traded at $31.51, with a volume of 1017532 shares changing hands. The stock had previously closed at $31.35.

Analyst Upgrades and Downgrades

Several research analysts have commented on HPE shares. The Goldman Sachs Group started coverage on shares of Hewlett Packard Enterprise in a report on Tuesday, January 13th. They issued a "buy" rating and a $31.00 price target for the company. Truist Financial started coverage on shares of Hewlett Packard Enterprise in a report on Tuesday, March 31st. They issued a "buy" rating and a $31.00 price target for the company. Citigroup raised their price target on shares of Hewlett Packard Enterprise from $26.00 to $27.00 and gave the company a "buy" rating in a report on Wednesday, March 11th. Morgan Stanley raised their price target on shares of Hewlett Packard Enterprise from $23.00 to $25.00 and gave the company an "equal weight" rating in a report on Tuesday, March 10th. Finally, Weiss Ratings reissued a "hold (c-)" rating on shares of Hewlett Packard Enterprise in a report on Wednesday, March 25th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and eleven have issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $26.71.

Hewlett Packard Enterprise Price Performance

The company has a current ratio of 1.03, a quick ratio of 0.75 and a debt-to-equity ratio of 0.71. The company has a market capitalization of $41.25 billion, a P/E ratio of -163.97, a P/E/G ratio of 0.81 and a beta of 1.28. The business's fifty day moving average price is $24.46 and its 200-day moving average price is $23.38.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) last posted its quarterly earnings data on Monday, March 9th. The technology company reported $0.65 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.59 by $0.06. Hewlett Packard Enterprise had a negative net margin of 0.41% and a positive return on equity of 9.93%. The company had revenue of $9.30 billion during the quarter, compared to the consensus estimate of $9.31 billion. During the same period in the previous year, the firm posted $0.49 EPS. The firm's revenue was up 18.4% compared to the same quarter last year. Hewlett Packard Enterprise has set its FY 2026 guidance at 2.300-2.500 EPS and its Q2 2026 guidance at 0.510-0.550 EPS. As a group, sell-side analysts predict that Hewlett Packard Enterprise Company will post 1.96 earnings per share for the current fiscal year.

Hewlett Packard Enterprise Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, April 23rd. Stockholders of record on Tuesday, March 24th were issued a dividend of $0.1425 per share. This represents a $0.57 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date of this dividend was Tuesday, March 24th. Hewlett Packard Enterprise's payout ratio is currently -300.00%.

Insider Activity at Hewlett Packard Enterprise

In other Hewlett Packard Enterprise news, CFO Marie Myers sold 93,583 shares of the business's 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 directly owned 204,754 shares of the company's stock, valued at $6,144,667.54. The trade was a 31.37% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, 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 150,000 shares of the business's stock in a transaction on Friday, April 17th. The stock was sold at an average price of $26.50, for a total transaction 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 represents a 8.16% 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. Insiders sold a total of 702,402 shares of company stock worth $18,440,171 in the last three months. 0.44% of the stock is owned by insiders.

Institutional Trading of Hewlett Packard Enterprise

Hedge funds have recently added to or reduced their stakes in the business. TFC Financial Management Inc. lifted its stake in Hewlett Packard Enterprise by 2,694.4% in the third quarter. TFC Financial Management Inc. now owns 1,006 shares of the technology company's stock worth $25,000 after purchasing an additional 970 shares during the last quarter. Annis Gardner Whiting Capital Advisors LLC lifted its stake in Hewlett Packard Enterprise by 176.7% in the third quarter. Annis Gardner Whiting Capital Advisors LLC now owns 1,043 shares of the technology company's stock worth $26,000 after purchasing an additional 666 shares during the last quarter. Headlands Technologies LLC bought a new stake in Hewlett Packard Enterprise in the second quarter worth $26,000. SJS Investment Consulting Inc. lifted its stake in Hewlett Packard Enterprise by 159.5% in 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 during the last quarter. Finally, Chilton Capital Management LLC bought a new stake in Hewlett Packard Enterprise in the third quarter worth $30,000. 80.78% of the stock is owned by institutional investors.

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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