HP Target of Unusually Large Options Trading (NYSE:HPQ)

Key Points

• Unusually high put-option activity: Traders bought 50,951 put options on HP, about 76% above typical volume, signaling increased bearish or hedging interest.
• Shares rose despite the options activity: HP stock gained 6.6% to $28.30 on above-average trading volume, while the company’s latest earnings beat expectations and revenue increased 9% year over year.
• Analyst sentiment remains cautious: HP pays a quarterly dividend of $0.30 per share, but analysts’ consensus rating is “Reduce,” with an average price target of $23.33 versus the reported share price.

HP Inc. (NYSE:HPQ - Get Free Report) was the recipient of unusually large options trading on Tuesday. Traders bought 50,951 put options on the company. This represents an increase of approximately 76% compared to the typical volume of 28,891 put options.

HP Trading Up 6.6%

HPQ stock traded up $1.75 during mid-day trading on Tuesday, hitting $28.30. 25,471,885 shares of the company were exchanged, compared to its average volume of 18,955,514. The firm has a fifty day simple moving average of $24.40 and a 200 day simple moving average of $21.28. The company has a market capitalization of $25.88 billion, a PE ratio of 10.44, a price-to-earnings-growth ratio of 4.34 and a beta of 1.19. HP has a twelve month low of $17.56 and a twelve month high of $29.65.

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

HP Announces Dividend

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 dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 4.2%. The ex-dividend date of this dividend is Wednesday, September 9th. HP's dividend payout ratio (DPR) is currently 44.28%.

Insiders Place Their Bets

In related news, insider David P. Mcquarrie sold 10,524 shares of the business's stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $24.68, for a total value of $259,732.32. Following the completion of the transaction, the insider owned 92,200 shares of the company's stock, valued at approximately $2,275,496. The trade was a 10.24% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.18% of the company's stock.

Institutional Investors Weigh In On HP

Several institutional investors and hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. raised its stake in HP by 1.9% during the fourth quarter. Vanguard Group Inc. now owns 132,094,388 shares of the computer maker's stock worth $2,943,063,000 after acquiring an additional 2,435,634 shares during the period. Universal Beteiligungs und Servicegesellschaft mbH boosted its stake in HP by 8.6% in the fourth quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 1,981,864 shares of the computer maker's stock valued at $45,063,000 after acquiring an additional 157,464 shares during the period. PFA Pension Forsikringsaktieselskab bought a new position in shares of HP during the fourth quarter valued at approximately $31,899,000. Mitsubishi UFJ Asset Management Co. Ltd. grew its holdings in shares of HP by 5.5% during the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 1,977,716 shares of the computer maker's stock valued at $43,747,000 after purchasing an additional 103,175 shares during the last quarter. Finally, BNP Paribas raised its position in shares of HP by 8,978.0% during the 4th quarter. BNP Paribas now owns 129,725 shares of the computer maker's stock worth $2,891,000 after purchasing an additional 128,296 shares during the period. 77.53% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on the stock. Wells Fargo & Company boosted their price objective on shares of HP from $18.00 to $20.00 and gave the company an "underweight" rating in a research report on Thursday, May 28th. Citigroup boosted their price target on HP from $20.00 to $25.00 and gave the company a "neutral" rating in a report on Thursday, May 28th. JPMorgan Chase & Co. raised their price objective on HP from $22.00 to $26.00 and gave the stock a "neutral" rating in a report on Thursday, May 28th. The Goldman Sachs Group raised their price target on HP from $16.00 to $19.00 and gave the stock a "sell" rating in a research note on Tuesday, June 2nd. Finally, Wall Street Zen lowered shares of HP from a "buy" rating to a "hold" rating in a report on Saturday, July 18th. Two research analysts have rated the stock with a Strong Buy rating, eight have given a Hold rating and five have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Reduce" and an average target price of $23.33.

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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