Hewlett Packard Enterprise (NYSE:HPE) Shares Up 1.2% - Time to Buy?

Key Points

• HPE shares rose 1.2% to about $55.80, while trading volume was 19% below the average session level. The stock remains below its 50-day moving average of $59.34 but above its 200-day average of $46.49.
• Analysts maintain a consensus “Moderate Buy” rating, with an average price target of $65.44. Recent targets range from $65 to $86, although Barclays downgraded the stock to “equal weight.”
• HPE exceeded quarterly expectations, reporting $1.11 in EPS versus $0.93 expected and $12.21 billion in revenue, up 33.7% year over year. The company also pays a $0.57 annualized dividend, yielding approximately 1.0%.

Shares of Hewlett Packard Enterprise Company (NYSE:HPE - Get Free Report) were up 1.2% during trading on Monday. The stock traded as high as $57.68 and last traded at $55.7990. Approximately 17,377,986 shares were traded during trading, a decline of 19% from the average session volume of 21,385,746 shares. The stock had previously closed at $55.13.

Wall Street Analysts Forecast Growth

HPE has been the topic of a number of recent analyst reports. Raymond James Financial raised their price target on shares of Hewlett Packard Enterprise from $74.00 to $86.00 and gave the company an "outperform" rating in a report on Thursday, September 3rd. UBS Group boosted their price objective 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. Loop Capital decreased their target price on shares of Hewlett Packard Enterprise from $75.00 to $65.00 and set a "buy" rating for the company in a research report on Tuesday, September 8th. Barclays cut shares of Hewlett Packard Enterprise from an "overweight" rating to an "equal weight" rating and decreased their target price for the company from $83.00 to $77.00 in a research report on Wednesday, October 14th. Finally, JPMorgan Chase & Co. raised their target price on shares of Hewlett Packard Enterprise from $68.00 to $70.00 in a research note on Tuesday, August 25th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $65.44.

Hewlett Packard Enterprise Stock Up 1.2%

The company has a 50-day moving average of $59.34 and a 200-day moving average of $46.49. The company has a market capitalization of $74.07 billion, a price-to-earnings ratio of 29.06, a price-to-earnings-growth ratio of 0.49 and a beta of 1.39. The company has a current ratio of 1.11, a quick ratio of 0.72 and a debt-to-equity ratio of 0.65.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) last released its quarterly earnings results on Wednesday, September 2nd. The technology company reported $1.11 EPS for the quarter, beating analysts' consensus estimates 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 analysts' expectations of $11.97 billion. During the same period last year, the business posted $0.44 earnings per share. The firm'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 predict that Hewlett Packard Enterprise Company will post 3.34 earnings per share for the current fiscal year.

Hewlett Packard Enterprise Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, October 16th. Investors of record on Thursday, September 17th were given a $0.1425 dividend. This represents a $0.57 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend was Thursday, September 17th. Hewlett Packard Enterprise's dividend payout ratio (DPR) is presently 29.69%.

Insider Buying and Selling

In related news, Director Gary M. Reiner sold 17,000 shares of Hewlett Packard Enterprise stock in a transaction that occurred 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 completion of the sale, the director directly owned 65,072 shares in the company, valued at $3,703,247.52. This trade represents a 20.71% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Rami Rahim sold 34,456 shares of the business's stock in a transaction that occurred on Tuesday, September 29th. The stock was sold at an average price of $61.42, for a total transaction of $2,116,287.52. Following the sale, the executive vice president directly owned 875,133 shares in the company, valued at approximately $53,750,668.86. This represents a 3.79% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 551,456 shares of company stock worth $35,271,258 in the last three months. Corporate insiders own 0.44% of the company's stock.

Hedge Funds Weigh In On Hewlett Packard Enterprise

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in HPE. Capital Square LLC purchased a new position in Hewlett Packard Enterprise during the third quarter worth about $225,000. LongView Wealth Management acquired a new position in Hewlett Packard Enterprise in the 3rd quarter valued at about $329,000. Jackson Square Capital LLC boosted its holdings in Hewlett Packard Enterprise by 56.4% in the 3rd quarter. Jackson Square Capital LLC now owns 18,335 shares of the technology company's stock valued at $1,171,000 after purchasing an additional 6,614 shares during the last quarter. Cottage Street Advisors LLC purchased a new stake in shares of Hewlett Packard Enterprise in the 3rd quarter valued at approximately $504,000. Finally, Grant Private Wealth Management Inc purchased a new stake in shares of Hewlett Packard Enterprise in the 3rd quarter valued at approximately $789,000. 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 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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