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

Key Points

• Unusually high options activity: Traders bought 47,622 put options on HP, 55% above the typical daily volume of 30,733 contracts.
• Analyst sentiment remains cautious: Despite several price-target increases, HP has an average “Reduce” rating and a consensus price target of $23.50, with eight Hold and five Sell ratings.
• Strong quarterly results and dividend: HP reported quarterly EPS of $0.86 versus the $0.72 estimate and revenue of $14.41 billion, up 9% year over year. The company declared a $0.30 quarterly dividend, representing a 4.0% annualized yield.

HP Inc. (NYSE:HPQ - Get Free Report) was the recipient of some unusual options trading on Friday. Traders bought 47,622 put options on the company. This represents an increase of 55% compared to the typical daily volume of 30,733 put options.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on the stock. JPMorgan Chase & Co. lifted their price target on shares of HP from $22.00 to $26.00 and gave the company a "neutral" rating in a research note on Thursday, May 28th. Bank of America boosted their price target on shares of HP from $16.00 to $18.00 and gave the company an "underperform" rating in a research report on Thursday, May 28th. Morgan Stanley lifted their target price on HP from $17.00 to $19.00 and gave the company an "underweight" rating in a research report on Thursday, May 28th. Barclays raised their target price on HP from $16.00 to $19.00 and gave the company an "underweight" rating in a report on Thursday, May 28th. Finally, TD Cowen raised their target price on shares of HP from $20.00 to $26.00 and gave the company a "hold" rating in a report on Thursday, May 28th. Two equities research analysts have rated the stock with a Strong Buy rating, eight have assigned a Hold rating and five have issued a Sell rating to the company's stock. According to MarketBeat.com, HP has an average rating of "Reduce" and an average price target of $23.50.

Insider Buying and Selling at HP

In related news, insider David P. Mcquarrie sold 21,048 shares of the company's stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $29.98, for a total value of $631,019.04. Following the completion of the transaction, the insider owned 39,580 shares of the company's stock, valued at approximately $1,186,608.40. This represents a 34.72% decrease in their position. The transaction 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. In the last ninety days, insiders sold 52,620 shares of company stock valued at $1,478,622. 0.18% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Garner Asset Management Corp acquired a new position in HP in the 4th quarter valued at $25,000. Flagship Harbor Advisors LLC acquired a new stake in shares of HP during the fourth quarter worth $26,000. SHP Wealth Management purchased a new stake in shares of HP in the fourth quarter valued at $26,000. Union Savings Bank purchased a new stake in shares of HP in the fourth quarter valued at $28,000. Finally, Aberdeen Wealth Management LLC acquired a new position in HP in the second quarter valued at $29,000. Institutional investors and hedge funds own 77.53% of the company's stock.

HP Stock Performance

HP stock traded down $1.19 during trading hours on Friday, reaching $30.11. 4,638,125 shares of the stock were exchanged, compared to its average volume of 18,601,857. HP has a 52-week low of $17.56 and a 52-week high of $32.19. The firm's 50 day moving average is $25.21 and its 200 day moving average is $21.98. The stock has a market cap of $27.54 billion, a P/E ratio of 11.10, a P/E/G ratio of 4.94 and a beta of 1.17.

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

HP Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 7th. Stockholders of record on Wednesday, September 9th will be given a $0.30 dividend. The ex-dividend date is Wednesday, September 9th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 4.0%. HP's dividend payout ratio (DPR) is currently 44.28%.

About HP

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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