Hewlett Packard Enterprise (NYSE:HPE) Shares Climb 1.9% - Here's Why

Key Points

• HPE shares rose 1.9% to about $63.49, reaching as high as $65.48 amid strong investor momentum and a new 52-week high.
• The company reported approximately 34% year-over-year revenue growth and quarterly earnings of $1.11 per share, beating estimates of $0.93, as demand for servers, networking and AI infrastructure remained strong.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $69.18 price target, although HPE faces competition from Dell and Super Micro in AI infrastructure and recently saw its CEO sell shares under a pre-arranged trading plan.

Hewlett Packard Enterprise Company (NYSE:HPE - Get Free Report)'s share price rose 1.9% during trading on Thursday. The company traded as high as $65.48 and last traded at $63.4860. 21,352,172 shares traded hands during trading, a decline of 0% from the average daily volume of 21,402,209 shares. The stock had previously closed at $62.33.

Key Headlines Impacting Hewlett Packard Enterprise

Here are the key news stories impacting Hewlett Packard Enterprise this week:

• Positive Sentiment: HPE reported approximately 34% year-over-year revenue growth, reinforcing the view that demand for its servers, networking equipment, and AI infrastructure remains strong. Hewlett Packard Enterprise stock reports 34% revenue growth
• Positive Sentiment: Analyst upgrades and supportive technical signals have helped HPE climb ahead of the open and reach a fresh 52-week high, suggesting continued investor momentum. HPE stock climbs ahead of the open
• Positive Sentiment: Research commentary continues to characterize HPE as an attractive value stock, while broader demand for integrated solutions and multi-cloud adoption supports the computer-systems industry. Why HPE is a strong value stock
• Positive Sentiment: HPE’s work bringing quantum computing into on-premises high-performance computing expands its technology offering and could create longer-term opportunities in advanced computing. HPE brings quantum computing into on-premises HPC
• Neutral Sentiment: HPE’s Aruba networking platform was highlighted in a hotel technology refit, illustrating practical AI and networking applications but offering limited immediate financial impact. HPE hotel refit with Aruba
• Negative Sentiment: A comparison with Dell Technologies was less favorable for HPE: Dell’s record AI orders, approximately $95 billion backlog, and higher server-revenue outlook provide investors with greater near-term demand visibility. HPE versus Dell AI infrastructure comparison
• Negative Sentiment: Super Micro’s rapid shipment of NVIDIA’s next-generation liquid-cooled AI systems highlights intense competition in advanced data-center infrastructure, potentially challenging HPE’s ability to capture incremental AI-server orders.

Analyst Upgrades and Downgrades

Several analysts have recently commented on the company. Evercore cut Hewlett Packard Enterprise from an "outperform" rating to an "in-line" rating and set a $65.00 price target for the company. in a report on Monday, September 14th. Weiss Ratings upgraded shares of Hewlett Packard Enterprise from a "buy (b-)" rating to a "buy (b)" rating in a report on Friday, September 4th. Barclays upped their target price on shares of Hewlett Packard Enterprise from $67.00 to $79.00 and gave the stock an "overweight" rating in a research report on Thursday, September 3rd. Citigroup lifted their price target on shares of Hewlett Packard Enterprise from $74.00 to $76.00 and gave the company a "buy" rating in a research report on Thursday, September 3rd. Finally, Raymond James Financial upped their price target on Hewlett Packard Enterprise from $74.00 to $86.00 and gave the stock an "outperform" rating in a report on Thursday, September 3rd. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and six have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $69.18.

Hewlett Packard Enterprise Stock Performance

The company has a current ratio of 1.11, a quick ratio of 0.72 and a debt-to-equity ratio of 0.65. The firm has a market capitalization of $84.28 billion, a PE ratio of 33.07, a PEG ratio of 0.54 and a beta of 1.43. The stock's 50 day moving average price is $53.36 and its two-hundred day moving average price is $41.29.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) last released its quarterly earnings results on Wednesday, September 2nd. The technology company reported $1.11 earnings per share for the quarter, topping the consensus estimate of $0.93 by $0.18. Hewlett Packard Enterprise had a return on equity of 15.50% and a net margin of 6.60%.The company had revenue of $12.21 billion during the quarter, compared to the consensus estimate of $11.97 billion. During the same quarter last year, the business posted $0.44 earnings per share. Hewlett Packard Enterprise's revenue was up 33.7% compared to the same quarter last year. Hewlett Packard Enterprise has set its Q4 2026 guidance at 1.200-1.300 EPS and its FY 2026 guidance at 3.750-3.850 EPS. On average, equities analysts expect that Hewlett Packard Enterprise Company will post 3.34 earnings per share for the current year.

Hewlett Packard Enterprise Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 16th. Shareholders of record on Thursday, September 17th will be issued a $0.1425 dividend. This represents a $0.57 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date is Thursday, September 17th. Hewlett Packard Enterprise's dividend payout ratio is 29.69%.

Insider Transactions at Hewlett Packard Enterprise

In related news, CEO Antonio F. Neri sold 250,000 shares of the company's stock in a transaction on Friday, September 11th. The stock was sold at an average price of $60.44, for a total value of $15,110,000.00. Following the completion of the transaction, the chief executive officer directly owned 1,432,393 shares in the company, valued at approximately $86,573,832.92. This represents a 14.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Gary Reiner sold 17,000 shares of the firm's stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $56.91, for a total transaction of $967,470.00. Following the completion of the sale, the director directly owned 65,072 shares in the company, valued at $3,703,247.52. This represents a 20.71% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 0.44% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Delos Wealth Advisors LLC acquired a new stake in Hewlett Packard Enterprise in the 2nd quarter valued at $27,000. SJS Investment Consulting Inc. boosted its position in Hewlett Packard Enterprise by 159.5% in the 1st quarter. SJS Investment Consulting Inc. now owns 1,165 shares of the technology company's stock valued at $28,000 after buying an additional 716 shares during the last quarter. Union Savings Bank acquired a new stake in shares of Hewlett Packard Enterprise during the fourth quarter valued at about $30,000. First Bancorp Inc ME purchased a new position in Hewlett Packard Enterprise in the second quarter valued at about $30,000. Finally, Reflection Asset Management acquired a new stake in Hewlett Packard Enterprise during the 4th quarter valued at approximately $31,000. Hedge funds and other institutional investors own 80.78% of the company's stock.

Hewlett Packard Enterprise Company Profile

Hewlett Packard Enterprise Company NYSE: HPE is a global technology company that provides information technology products, services and solutions for businesses and other organizations. Its offerings are designed to support data centers, cloud computing, artificial intelligence, networking and the management of distributed IT environments.

HPE's portfolio includes enterprise servers, data storage systems, networking equipment, high-performance computing and software. Through its HPE GreenLake platform, the company also delivers cloud and as-a-service solutions that allow customers to access computing, storage, data protection and other IT capabilities through a flexible consumption model.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.