HP Inc. (NYSE:HPQ) Receives Average Rating of "Reduce" from Analysts

Key Points

• Analyst sentiment is negative: Fifteen firms give HP an average “Reduce” rating, including five sells, eight holds and two strong buys. The average 12-month price target is $23.50, below the reported share price of $29.42.
• Recent results exceeded expectations: HP reported quarterly EPS of $0.86 versus a $0.72 consensus estimate, while revenue rose 9% year over year to $14.41 billion.
• HP maintains an attractive dividend: The company declared a quarterly dividend of $0.30, or $1.20 annualized, representing a 4.1% yield and a 44.28% payout ratio.

Shares of HP Inc. (NYSE:HPQ - Get Free Report) have earned an average rating of "Reduce" from the fifteen research firms that are presently covering the firm, MarketBeat Ratings reports. Five investment analysts have rated the stock with a sell rating, eight have given a hold rating and two have assigned a strong buy rating to the company. The average twelve-month price objective among analysts that have issued a report on the stock in the last year is $23.50.

Several brokerages recently issued reports on HPQ. Wells Fargo & Company lifted their price objective on shares of HP from $18.00 to $20.00 and gave the company an "underweight" rating in a report on Thursday, May 28th. Bank of America upped their target price on HP from $16.00 to $18.00 and gave the stock an "underperform" rating in a report on Thursday, May 28th. Weiss Ratings raised HP from a "hold (c-)" rating to a "hold (c)" rating in a research report on Monday, July 6th. Barclays lifted their price target on HP from $16.00 to $19.00 and gave the company an "underweight" rating in a report on Thursday, May 28th. Finally, The Goldman Sachs Group upped their price objective on HP from $19.00 to $21.00 and gave the stock a "sell" rating in a research note on Wednesday, August 12th.

HP Price Performance

NYSE:HPQ opened at $29.42 on Friday. HP has a 1-year low of $17.56 and a 1-year high of $32.19. The company has a 50-day moving average of $25.69 and a 200 day moving average of $22.35. The firm has a market cap of $26.91 billion, a PE ratio of 10.86, a price-to-earnings-growth ratio of 5.05 and a beta of 1.17.

HP (NYSE:HPQ - Get Free Report) last posted its earnings results on Wednesday, May 27th. The computer maker reported $0.86 EPS for the quarter, beating analysts' consensus estimates of $0.72 by $0.14. HP had a net margin of 4.45% and a negative return on equity of 581.36%. The business had revenue of $14.41 billion for the quarter, compared to the consensus estimate of $13.99 billion. During the same quarter last year, the firm posted $0.71 EPS. The company's revenue for the quarter was up 9.0% on a year-over-year basis. HP has set its FY 2026 guidance at 2.900-3.100 EPS and its Q3 2026 guidance at 0.610-0.710 EPS. Sell-side analysts anticipate that HP will post 2.98 EPS for the current fiscal year.

HP Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 7th. Shareholders of record on Wednesday, September 9th will be issued a $0.30 dividend. The ex-dividend date is Wednesday, September 9th. This represents a $1.20 dividend on an annualized basis and a yield of 4.1%. HP's payout ratio is currently 44.28%.

Insider Activity at HP

In other HP news, insider David P. Mcquarrie sold 21,048 shares of the stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $29.98, for a total transaction of $631,019.04. Following the completion of the sale, the insider directly owned 39,580 shares of the company's stock, valued at approximately $1,186,608.40. This represents a 34.72% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 52,620 shares of company stock worth $1,478,622 over the last ninety days. Corporate insiders own 0.18% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of HPQ. IHT Wealth Management LLC lifted its position in shares of HP by 3.3% during the second quarter. IHT Wealth Management LLC now owns 12,470 shares of the computer maker's stock worth $305,000 after purchasing an additional 398 shares in the last quarter. Vident Advisory LLC boosted its position in HP by 0.6% in the 2nd quarter. Vident Advisory LLC now owns 69,579 shares of the computer maker's stock valued at $1,702,000 after buying an additional 444 shares during the last quarter. MassMutual Private Wealth & Trust FSB increased its stake in shares of HP by 10.3% in the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 5,020 shares of the computer maker's stock valued at $110,000 after buying an additional 467 shares during the period. Vise Technologies Inc. raised its position in shares of HP by 2.4% during the third quarter. Vise Technologies Inc. now owns 20,531 shares of the computer maker's stock worth $559,000 after acquiring an additional 477 shares during the last quarter. Finally, Legacy Wealth Asset Management LLC raised its position in shares of HP by 0.6% during the second quarter. Legacy Wealth Asset Management LLC now owns 80,784 shares of the computer maker's stock worth $1,772,000 after acquiring an additional 491 shares during the last quarter. Institutional investors own 77.53% of the company's stock.

HP Company Profile

HP Inc is an American multinational information technology company that designs, manufactures and sells personal computing devices, printers and related supplies and services. Its product portfolio spans consumer and commercial notebooks and desktops, workstations, displays and accessories, as well as an extensive line of printing hardware that includes home, office and production printers. HP also provides consumables such as ink and toner, managed print services, device deployment and lifecycle support, and software for device and print management.

Founded from the original Hewlett‑Packard Company, HP Inc became a separately traded public company in 2015 following a corporate split that created Hewlett Packard Enterprise to focus on enterprise hardware and services.

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