Hewlett Packard Enterprise (NYSE:HPE) Shares Down 5.8% - Should You Sell?

Key Points

• HPE shares fell 5.8% to about $50 in mid-day trading, with roughly 21 million shares traded.
• The decline came amid a broader sell-off in AI-server stocks, as investors weighed margin concerns and opposition to data-center development; the article cited no company-specific setback.
• Analysts maintain a Moderate Buy consensus and an average price target of $65.44. HPE’s latest reported quarter beat earnings and revenue estimates, and a Zacks analysis suggested it could beat estimates again.

Hewlett Packard Enterprise Company (NYSE:HPE - Get Free Report)'s stock price was down 5.8% during mid-day trading on Wednesday. The stock traded as low as $49.16 and last traded at $50.0240. 20,996,141 shares traded hands during trading, an increase of 0% from the average daily volume of 20,957,473 shares. The stock had previously closed at $53.10.

Hewlett Packard Enterprise News Summary

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

• Positive Sentiment: HPE was included among Zacks Strong Buy picks and in a screen of value stocks with high earnings yields, potentially attracting investors seeking comparatively attractive valuations amid AI-related volatility. New Strong Buy Stocks for November 3rd 5 Value Stocks to Buy as AI Volatility Reshapes the Market
• Positive Sentiment: A Zacks analysis said HPE’s earnings-surprise record and current indicators suggest the company could beat estimates in its next quarterly report. This is a favorable near-term expectation, though not a guarantee. Will HPE Beat Estimates Again?
• Neutral Sentiment: HPE’s CEO said he has no exposure to the complex financing arrangements surrounding AI, a statement that may ease concerns about indirect financing risks but does not address demand or profitability. HPE CEO on AI financing exposure
• Negative Sentiment: AI-server makers, including HPE, sold off as investors questioned margins and voter opposition to data centers raised concerns about future development. The pressure was sector-wide, rather than news of a company-specific setback. AI server stocks face margin and data-center concerns

Analysts Set New Price Targets

A number of brokerages recently commented on HPE. Truist Financial restated a "buy" rating and set a $75.00 target price (up from $70.00) on shares of Hewlett Packard Enterprise in a report on Thursday, October 1st. Loop Capital reduced their price objective on Hewlett Packard Enterprise from $75.00 to $65.00 and set a "buy" rating on the stock in a research report on Tuesday, September 8th. Evercore boosted their target price on shares of Hewlett Packard Enterprise from $65.00 to $67.00 and gave the company an "outperform" rating in a research note on Thursday, October 1st. UBS Group raised their price target on shares of Hewlett Packard Enterprise from $59.00 to $66.00 and gave the stock a "neutral" rating in a research note on Thursday, October 1st. Finally, 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. Two research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and eight have issued a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $65.44.

Hewlett Packard Enterprise Stock Performance

The company's fifty day moving average price is $59.68 and its two-hundred day moving average price is $41.01. The firm has a market capitalization of $66.40 billion, a PE ratio of 26.05, a price-to-earnings-growth ratio of 0.33 and a beta of 1.46. The company has a debt-to-equity ratio of 0.65, a quick ratio of 0.72 and a current ratio of 1.11.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) last announced its quarterly earnings results on Wednesday, September 2nd. The technology company reported $1.11 earnings per share for the quarter, beating analysts' consensus estimates of $0.93 by $0.18. Hewlett Packard Enterprise had a net margin of 6.60% and a return on equity of 15.50%. The company had revenue of $12.21 billion for the quarter, compared to analyst estimates of $11.97 billion. During the same quarter last year, the business earned $0.44 EPS. Hewlett Packard Enterprise's revenue for the quarter was up 33.7% on a year-over-year basis. 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. As a group, 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 business also recently announced a quarterly dividend, which was paid on Friday, October 16th. Stockholders of record on Thursday, September 17th were paid a $0.1425 dividend. The ex-dividend date was Thursday, September 17th. This represents a $0.57 dividend on an annualized basis and a dividend yield of 1.1%. Hewlett Packard Enterprise's dividend payout ratio (DPR) is 29.69%.

Insider Activity

In other Hewlett Packard Enterprise news, Director Gary M. Reiner sold 17,000 shares of the business's stock in a transaction on Monday, September 14th. The shares were sold at an average price of $56.91, for a total value of $967,470.00. Following the transaction, the director owned 65,072 shares in the company, valued at $3,703,247.52. The trade was a 20.71% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Rami Rahim sold 34,443 shares of the firm's stock in a transaction dated Wednesday, October 21st. The shares were sold at an average price of $58.04, for a total value of $1,999,071.72. Following the sale, the executive vice president owned 840,690 shares of the company's stock, valued at $48,793,647.60. This represents a 3.94% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 585,899 shares of company stock worth $37,270,329 over the last 90 days. Company insiders own 0.44% of the company's stock.

Institutional Trading of Hewlett Packard Enterprise

A number of hedge funds have recently made changes to their positions in HPE. Barrow Hanley Mewhinney & Strauss LLC bought a new stake in shares of Hewlett Packard Enterprise in the 2nd quarter valued at approximately $1,027,139,000. Primecap Management Co. CA acquired a new stake in Hewlett Packard Enterprise in the second quarter valued at approximately $773,225,000. Elliott Investment Management L.P. increased its position in Hewlett Packard Enterprise by 47.2% during the first quarter. Elliott Investment Management L.P. now owns 27,421,735 shares of the technology company's stock worth $652,912,000 after buying an additional 8,790,757 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in shares of Hewlett Packard Enterprise by 6.1% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 13,088,774 shares of the technology company's stock valued at $590,435,000 after acquiring an additional 756,972 shares in the last quarter. Finally, Legal & General Group Plc bought a new stake in Hewlett Packard Enterprise during the second quarter worth approximately $512,721,000. Institutional investors and hedge funds 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 solutions for businesses, governments and other organizations. Its offerings are designed to help customers build, manage and modernize data centers, hybrid cloud environments and edge computing operations.

HPE's portfolio includes enterprise servers and compute systems, data storage, networking products, high-performance computing and artificial intelligence infrastructure.

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