Hewlett Packard Enterprise (NYSE:HPE) Shares Up 2.3% - Should You Buy?

Key Points

• HPE shares rose 2.3% to about $62.43, supported by strong networking demand tied to AI infrastructure investment and potential growth from its Juniper Networks integration.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating and an average price target of $69.18, although estimates range widely and some analysts have downgraded the stock or lowered targets.
• HPE reported strong quarterly results, including $1.11 in EPS versus the $0.93 estimate and 33.7% year-over-year revenue growth. Risks include the stock’s elevated valuation near its annual high and recent insider sales by the CEO and a director.

Hewlett Packard Enterprise Company (NYSE:HPE - Get Free Report)'s stock price rose 2.3% on Wednesday . The company traded as high as $63.36 and last traded at $62.4310. 14,933,073 shares were traded during mid-day trading, a decline of 30% from the average daily volume of 21,402,014 shares. The stock had previously closed at $61.03.

Trending Headlines about Hewlett Packard Enterprise

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

• Positive Sentiment: Networking orders point to continued growth. HPE’s networking orders are reportedly outpacing shipments as customers invest in AI infrastructure. Large deals and the integration of Juniper Networks could provide additional growth opportunities, although execution remains important. HPE's Networking Orders Signal Continued Growth: What's Ahead?
• Positive Sentiment: Morgan Stanley maintained a Buy rating. The reaffirmed rating adds to the positive analyst backdrop and supports investor confidence as HPE approaches its annual high. Morgan Stanley Reaffirms Their Buy Rating on Hewlett Packard Enterprise (HPE)
• Positive Sentiment: HPE is highlighted as a potential beneficiary of technology demand. Analysts point to demand for integrated solutions and adoption of multi-cloud models, while HPE is included among technology-solutions stocks positioned to benefit despite supply-chain challenges. 4 Stocks to Buy From a Prospering Technology Solutions Industry
• Positive Sentiment: Technical momentum remains supportive. HPE is identified as one of the technology stocks with favorable fundamentals and technical setups that could extend gains if the sector’s breakout and broader QQQ momentum persist. 3 Tech Stocks Positioned for More Upside if the Sector’s Breakout Holds
• Neutral Sentiment: Value-stock screens are drawing attention to HPE. Recent comparisons with AMD and broader value-stock lists suggest investors are evaluating HPE on valuation and growth potential. However, the stock’s sharp advance toward its yearly high may make valuation and execution more important risks for new buyers. HPE or AMD: Which Is the Better Value Stock Right Now?

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on HPE shares. Wells Fargo & Company cut their price target on shares of Hewlett Packard Enterprise from $67.00 to $54.00 and set an "equal weight" rating on the stock in a report on Thursday, September 3rd. Raymond James Financial lifted their price objective on shares of Hewlett Packard Enterprise from $74.00 to $86.00 and gave the stock an "outperform" rating in a research report on Thursday, September 3rd. Evercore downgraded shares of Hewlett Packard Enterprise from an "outperform" rating to an "in-line" rating and set a $65.00 target price on the stock. in a research note on Monday, September 14th. Wall Street Zen raised Hewlett Packard Enterprise from a "buy" rating to a "strong-buy" rating in a research report on Sunday, August 30th. Finally, Loop Capital upgraded Hewlett Packard Enterprise from a "hold" rating to a "buy" rating and lifted their price target for the company from $23.00 to $75.00 in a report on Tuesday, June 2nd. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $69.18.

Hewlett Packard Enterprise Stock Up 2.3%

The firm has a 50 day moving average of $53.06 and a 200-day moving average of $41.00. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.11 and a quick ratio of 0.72. The stock has a market capitalization of $82.87 billion, a P/E ratio of 32.52, a price-to-earnings-growth ratio of 0.55 and a beta of 1.43.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) last announced its quarterly earnings data on Wednesday, September 2nd. The technology company reported $1.11 EPS for the quarter, topping analysts' consensus estimates of $0.93 by $0.18. The company had revenue of $12.21 billion during the quarter, compared to the consensus estimate of $11.97 billion. Hewlett Packard Enterprise had a return on equity of 15.50% and a net margin of 6.60%.The company's quarterly revenue was up 33.7% on a year-over-year basis. During the same quarter last year, the company earned $0.44 EPS. 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 research analysts expect that Hewlett Packard Enterprise Company will post 3.34 earnings per share for the current fiscal year.

Hewlett Packard Enterprise Announces Dividend

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

Insider Activity

In related news, Director Gary Reiner sold 17,000 shares of the business's stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $56.91, for a total transaction of $967,470.00. Following the completion of the transaction, the director owned 65,072 shares in the company, valued at approximately $3,703,247.52. The trade was a 20.71% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Antonio F. Neri sold 250,000 shares of the business's stock in a transaction dated Friday, September 11th. The shares were 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 of the company's stock, valued at approximately $86,573,832.92. The trade was a 14.86% 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. 0.44% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Andra AP fonden bought a new position in shares of Hewlett Packard Enterprise during the 2nd quarter valued at approximately $10,759,000. Tidal Investments LLC raised its stake in Hewlett Packard Enterprise by 552.7% during the second quarter. Tidal Investments LLC now owns 800,103 shares of the technology company's stock valued at $36,093,000 after purchasing an additional 677,528 shares in the last quarter. BlueCrest Capital Management Ltd raised its stake in Hewlett Packard Enterprise by 105.8% during the second quarter. BlueCrest Capital Management Ltd now owns 201,015 shares of the technology company's stock valued at $9,068,000 after purchasing an additional 103,323 shares in the last quarter. Engineers Gate Manager LP bought a new position in Hewlett Packard Enterprise during the second quarter valued at $13,408,000. Finally, SVB Wealth LLC purchased a new position in shares of Hewlett Packard Enterprise in the 2nd quarter worth $237,000. Institutional investors and hedge funds own 80.78% of the company's stock.

About Hewlett Packard Enterprise

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.

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