HP Inc. (NYSE:HPQ) Receives Average Recommendation of "Hold" from Analysts

Key Points

• HP Inc. has received an average analyst recommendation of "Hold", with one sell rating, twelve holds, and two buys from fifteen research firms.
• The company's recent quarterly earnings fell short of expectations, reporting $0.71 earnings per share against an estimate of $0.80.
• HP declared a quarterly dividend of $0.2894 per share, with an annualized dividend yield of 4.4%, reflecting a payout ratio of 44.79%.

Shares of HP Inc. (NYSE:HPQ - Get Free Report) have received a consensus recommendation of "Hold" from the fifteen research firms that are presently covering the firm, Marketbeat Ratings reports. One research analyst has rated the stock with a sell rating, twelve have assigned a hold rating and two have given a buy rating to the company. The average 1 year price objective among analysts that have updated their coverage on the stock in the last year is $29.5417.

A number of research analysts have commented on the company. Barclays set a $28.00 target price on HP and gave the company an "equal weight" rating in a research note on Thursday, May 29th. Bank of America lowered their target price on HP from $35.00 to $33.00 and set a "neutral" rating on the stock in a research note on Wednesday, May 28th. TD Cowen reduced their price target on HP from $38.00 to $28.00 and set a "hold" rating for the company in a research report on Thursday, May 29th. Evercore ISI reduced their price target on HP from $40.00 to $32.00 and set an "outperform" rating for the company in a research report on Monday, April 28th. Finally, Morgan Stanley reduced their price target on HP from $29.00 to $26.00 and set an "equal weight" rating for the company in a research report on Thursday, May 29th.

Hedge Funds Weigh In On HP

Several large investors have recently added to or reduced their stakes in HPQ. Nuveen LLC acquired a new position in HP in the 1st quarter valued at approximately $179,037,000. Universal Beteiligungs und Servicegesellschaft mbH bought a new stake in shares of HP in the 4th quarter valued at approximately $63,612,000. Invesco Ltd. grew its stake in shares of HP by 19.2% in the 1st quarter. Invesco Ltd. now owns 11,340,629 shares of the computer maker's stock valued at $314,022,000 after purchasing an additional 1,829,411 shares during the period. Northern Trust Corp grew its stake in shares of HP by 15.8% in the 4th quarter. Northern Trust Corp now owns 12,844,795 shares of the computer maker's stock valued at $419,126,000 after purchasing an additional 1,755,942 shares during the period. Finally, Castlekeep Investment Advisors LLC bought a new stake in shares of HP in the 4th quarter valued at approximately $55,915,000. Institutional investors and hedge funds own 77.53% of the company's stock.

HP Trading Up 3.0%

NYSE:HPQ opened at $26.11 on Monday. The firm has a market capitalization of $24.52 billion, a price-to-earnings ratio of 10.08, a PEG ratio of 2.11 and a beta of 1.29. HP has a 1-year low of $21.21 and a 1-year high of $39.79. The business's fifty day moving average price is $25.05 and its 200 day moving average price is $27.32.

HP (NYSE:HPQ - Get Free Report) last posted its quarterly earnings results on Wednesday, May 28th. The computer maker reported $0.71 earnings per share for the quarter, missing the consensus estimate of $0.80 by ($0.09). HP had a net margin of 4.64% and a negative return on equity of 244.99%. The business had revenue of $13.22 billion for the quarter, compared to analyst estimates of $13.09 billion. During the same period in the previous year, the firm posted $0.82 earnings per share. The firm's quarterly revenue was up 3.3% on a year-over-year basis. Equities analysts forecast that HP will post 3.56 earnings per share for the current year.

HP Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Wednesday, September 10th will be issued a $0.2894 dividend. The ex-dividend date of this dividend is Wednesday, September 10th. This represents a $1.16 annualized dividend and a yield of 4.4%. HP's dividend payout ratio is 44.79%.

About HP

HP Inc provides products, technologies, software, solutions, and services to individual consumers, small- and medium-sized businesses, and large enterprises, including customers in the government, health, and education sectors worldwide. It operates through Personal Systems and Printing segments. The Personal Systems segment offers commercial personal computers (PCs), consumer PCs, workstations, thin clients, commercial tablets and mobility devices, retail point-of-sale systems, displays and other related accessories, software, support, and services for the commercial and consumer markets.

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