Investors Buy High Volume of Call Options on HP (NYSE:HPQ)

Key Points

• HP Inc. experienced a significant surge in options trading, with investors purchasing 113,327 call options, marking a 584% increase over its average volume.
• Analysts have recently upgraded HP's stock ratings, with Zacks Research moving from a "strong sell" to a "hold," and Wall Street Zen rating it as a "buy."
• In the most recent quarter, HP reported a net revenue increase of 3.1% year-over-year, achieving earnings per share of $0.75, which matched analysts' expectations.

HP Inc. (NYSE:HPQ - Get Free Report) saw unusually large options trading activity on Tuesday. Investors acquired 113,327 call options on the company. This is an increase of 584% compared to the average volume of 16,561 call options.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on the stock. Zacks Research raised shares of HP from a "strong sell" rating to a "hold" rating in a research report on Tuesday, August 19th. Bank of America reduced their price target on shares of HP from $35.00 to $33.00 and set a "neutral" rating on the stock in a research report on Wednesday, May 28th. TD Cowen reduced their price target on shares of HP from $38.00 to $28.00 and set a "hold" rating on the stock in a research report on Thursday, May 29th. UBS Group boosted their price objective on shares of HP from $26.00 to $29.00 and gave the company a "neutral" rating in a research report on Thursday, August 28th. Finally, Wall Street Zen raised shares of HP from a "hold" rating to a "buy" rating in a research report on Monday, May 12th. Two research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, HP currently has an average rating of "Hold" and a consensus target price of $29.96.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Nuveen LLC acquired a new position in HP in the 1st quarter valued at about $179,037,000. Norges Bank bought a new stake in HP in the 2nd quarter valued at $91,698,000. Qube Research & Technologies Ltd bought a new position in HP during the 2nd quarter worth $74,385,000. Vanguard Group Inc. grew its stake in shares of HP by 1.9% in the second quarter. Vanguard Group Inc. now owns 126,536,318 shares of the computer maker's stock valued at $3,095,078,000 after acquiring an additional 2,395,056 shares in the last quarter. Finally, First Trust Advisors LP raised its stake in HP by 93.9% in the 2nd quarter. First Trust Advisors LP now owns 4,874,334 shares of the computer maker's stock worth $119,226,000 after purchasing an additional 2,360,678 shares in the last quarter. Institutional investors own 77.53% of the company's stock.

HP Price Performance

NYSE:HPQ traded down $0.25 on Tuesday, hitting $29.10. 9,859,971 shares of the company's stock were exchanged, compared to its average volume of 8,421,819. The firm has a 50-day moving average price of $26.30 and a 200-day moving average price of $26.51. HP has a 52 week low of $21.21 and a 52 week high of $39.79. The company has a market cap of $27.20 billion, a P/E ratio of 10.62, a price-to-earnings-growth ratio of 2.36 and a beta of 1.29.

HP (NYSE:HPQ - Get Free Report) last issued its quarterly earnings results on Wednesday, August 27th. The computer maker reported $0.75 EPS for the quarter, hitting the consensus estimate of $0.75. HP had a net margin of 4.83% and a negative return on equity of 262.03%. The firm had revenue of $13.93 billion for the quarter, compared to analysts' expectations of $13.69 billion. During the same period in the previous year, the firm posted $0.83 EPS. The company's revenue for the quarter was up 3.1% on a year-over-year basis. HP has set its Q4 2025 guidance at 0.870-0.97 EPS. On average, research analysts expect that HP will post 3.56 earnings per share for the current fiscal year.

HP Company Profile

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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