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

Key Points

• HP saw unusually heavy options activity: Investors purchased 110,665 call options, up 234% from the average daily volume of 33,095.
• Recent results exceeded expectations: HP reported quarterly EPS of $0.83 versus the $0.66 consensus estimate, while revenue rose 12.5% year over year to $15.68 billion. The company issued full-year fiscal 2026 EPS guidance of $3.19–$3.29.
• Investor sentiment remains mixed: Institutional ownership stands at 77.53%, while analysts maintain an average “Reduce” rating and a $25.17 consensus price target, below HP’s recent share price of $31.15. HP also announced a quarterly dividend of $0.30 per share, implying a 3.9% yield.

HP Inc. (NYSE:HPQ - Get Free Report) saw unusually large options trading activity on Tuesday. Investors acquired 110,665 call options on the company. This is an increase of 234% compared to the average daily volume of 33,095 call options.

Insider Activity

In other news, insider David McQuarrie sold 21,048 shares of the stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $29.98, for a total transaction of $631,019.04. Following the sale, the insider directly owned 39,580 shares of the company's stock, valued at $1,186,608.40. This represents a 34.72% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 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 in the last quarter. 0.18% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On HP

Several hedge funds have recently made changes to their positions in HPQ. BlackRock Inc. bought a new position in HP in the second quarter valued at $2,357,757,000. California State Teachers Retirement System lifted its position in HP by 2,151.8% during the 2nd quarter. California State Teachers Retirement System now owns 35,563,906 shares of the computer maker's stock worth $780,272,000 after buying an additional 33,984,527 shares in the last quarter. Primecap Management Co. CA acquired a new position in shares of HP during the 2nd quarter worth about $545,984,000. Legal & General Group Plc acquired a new position in shares of HP during the 2nd quarter worth about $180,689,000. Finally, DNB Asset Management AS grew its holdings in shares of HP by 242.2% in the 4th quarter. DNB Asset Management AS now owns 10,594,630 shares of the computer maker's stock valued at $236,048,000 after acquiring an additional 7,498,202 shares in the last quarter. 77.53% of the stock is owned by institutional investors.

HP Price Performance

Shares of HPQ stock traded down $1.49 during trading hours on Tuesday, reaching $31.15. The company had a trading volume of 15,565,889 shares, compared to its average volume of 18,338,771. HP has a 1-year low of $17.56 and a 1-year high of $32.78. The firm has a market cap of $28.09 billion, a price-to-earnings ratio of 11.89, a P/E/G ratio of 1.70 and a beta of 1.18. The company has a 50 day moving average of $27.41 and a 200 day moving average of $23.31.

HP (NYSE:HPQ - Get Free Report) last issued its earnings results on Wednesday, August 26th. The computer maker reported $0.83 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.66 by $0.17. HP had a negative return on equity of 947.78% and a net margin of 4.14%.The firm had revenue of $15.68 billion for the quarter, compared to analysts' expectations of $14.44 billion. During the same quarter last year, the business earned $0.75 earnings per share. The company's revenue was up 12.5% compared to the same quarter last year. HP has set its FY 2026 guidance at 3.190-3.290 EPS and its Q4 2026 guidance at 0.690-0.790 EPS. As a group, sell-side analysts forecast that HP will post 3.23 EPS for the current fiscal year.

HP Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 7th. Stockholders of record on Wednesday, September 9th will be given a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a dividend yield of 3.9%. The ex-dividend date of this dividend is Wednesday, September 9th. HP's dividend payout ratio is currently 45.80%.

Analysts Set New Price Targets

Several equities research analysts have recently commented on the company. Sanford C. Bernstein reissued a "market perform" rating and issued a $32.00 target price on shares of HP in a research note on Thursday, August 27th. Citigroup lifted their price objective on HP from $20.00 to $25.00 and gave the stock a "neutral" rating in a research report on Thursday, May 28th. Barclays boosted their price objective on HP from $19.00 to $23.00 and gave the stock an "underweight" rating in a report on Friday, August 28th. Bank of America restated an "underperform" rating on shares of HP in a research report on Thursday, August 27th. Finally, UBS Group raised their target price on shares of HP from $26.00 to $28.00 and gave the company a "neutral" rating in a research note on Thursday, August 27th. Two investment analysts have rated the stock with a Strong Buy rating, eight have given a Hold rating and five have given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Reduce" and a consensus price target of $25.17.

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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