Hewlett Packard Enterprise (NYSE:HPE) Shares Up 3.6% - Should You Buy?

Key Points

• HPE shares rose 3.6% to about $58.11, supported by strong AI-infrastructure demand after Super Micro reported better-than-expected preliminary results.
• HPE reported quarterly EPS of $1.11 versus the $0.93 consensus estimate, while revenue reached $12.21 billion, up 33.7% year over year. The company is also expanding its AI and networking offerings, including new AMD-powered ProLiant servers and a Miami Heat modernization contract.
• Analyst sentiment remains cautiously positive, with a “Moderate Buy” consensus and a $65.44 average price target, though Barclays cut its target to $77 and investors remain concerned about valuation and the durability of enterprise AI spending.

Shares of Hewlett Packard Enterprise Company (NYSE:HPE - Get Free Report) traded up 3.6% during mid-day trading on Wednesday. The stock traded as high as $59.50 and last traded at $58.1110. Approximately 13,485,814 shares traded hands during trading, a decline of 37% from the average session volume of 21,309,078 shares. The stock had previously closed at $56.09.

Trending Headlines about Hewlett Packard Enterprise

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

• Positive Sentiment: AI infrastructure demand is lifting the sector. Super Micro’s preliminary results exceeded its revenue forecast and indicated stronger gross margins, providing fresh evidence that spending on AI computing infrastructure remains robust. The read-through helped lift HPE and other server makers. Why are Dell and HPE stocks rising in premarket trading on Wednesday?
• Positive Sentiment: HPE won a networking modernization contract with the Miami Heat. The company will help upgrade wired and wireless infrastructure at Kaseya Center, including Wi-Fi 7 capabilities, with AT&T and CSPI Technology Solutions supporting the project. The deal offers a modest demonstration of demand for HPE’s networking business. Miami Heat selects Hewlett Packard Enterprise to modernize infrastructure
• Positive Sentiment: New products are expanding HPE’s AI opportunity. HPE introduced ProLiant Gen13 servers using AMD’s sixth-generation EPYC processors, targeting AI inference, data-intensive simulations and other high-value workloads. Its Spaceborne Computer 4 is also planned to run AI and high-performance-computing benchmarks on the Moon, adding visibility to HPE’s specialized computing capabilities. HPE Spaceborne Computer to power high performance computing and AI on the Moon
• Neutral Sentiment: Investors remain focused on execution and valuation. HPE’s latest reported quarter showed adjusted earnings and revenue above expectations, while revenue grew substantially year over year. However, commentary notes that the market is questioning whether enterprise AI spending can remain durable after a sharp rally.
• Negative Sentiment: Barclays lowered its HPE price target from $83 to $77. The reduction may weigh on sentiment and highlights concerns that expectations for the stock have risen faster than confidence in sustainable future growth. Barclays cuts target for Hewlett Packard Enterprise stock

Analysts Set New Price Targets

Several analysts have weighed in on the stock. Weiss Ratings raised shares of Hewlett Packard Enterprise from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, September 4th. Citigroup lifted their price objective on Hewlett Packard Enterprise from $76.00 to $92.00 and gave the company a "buy" rating in a research report on Thursday, October 1st. JPMorgan Chase & Co. boosted their price objective on Hewlett Packard Enterprise from $68.00 to $70.00 in a research note on Tuesday, August 25th. Bank of America increased their target price on Hewlett Packard Enterprise from $80.00 to $82.00 and gave the stock a "buy" rating in a report on Monday, August 31st. Finally, Truist Financial restated a "buy" rating and issued a $75.00 target price (up from $70.00) on shares of Hewlett Packard Enterprise in a research note on Thursday, October 1st. Two analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and eight have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $65.44.

Hewlett Packard Enterprise Price Performance

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 firm has a market capitalization of $77.14 billion, a P/E ratio of 30.27, a PEG ratio of 0.50 and a beta of 1.39. The company's 50 day moving average price is $59.40 and its 200 day moving average price is $46.95.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) last posted its quarterly earnings data 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 net margin of 6.60% and a return on equity of 15.50%. The firm had revenue of $12.21 billion during the quarter, compared to analysts' expectations of $11.97 billion. During the same quarter in the previous year, the company posted $0.44 EPS. Hewlett Packard Enterprise's revenue 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, sell-side analysts anticipate that Hewlett Packard Enterprise Company will post 3.34 EPS for the current fiscal year.

Hewlett Packard Enterprise Announces Dividend

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

Insider Buying and Selling

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

Hedge Funds Weigh In On Hewlett Packard Enterprise

Large investors have recently bought and sold shares of the business. Triumph Capital Management raised its position in Hewlett Packard Enterprise by 208.6% during the third quarter. Triumph Capital Management now owns 466 shares of the technology company's stock worth $30,000 after acquiring an additional 315 shares in the last quarter. Delos Wealth Advisors LLC bought a new stake in shares of Hewlett Packard Enterprise in the 2nd quarter valued at about $27,000. Pension & Wealth Management Advisors Inc. acquired a new stake in Hewlett Packard Enterprise in the 3rd quarter valued at about $40,000. First Bancorp Inc ME bought a new position in Hewlett Packard Enterprise during the second quarter worth about $30,000. Finally, Bullock Wealth Management Group acquired a new stake in shares of Hewlett Packard Enterprise in the third quarter valued at approximately $48,000. 80.78% of the stock is currently owned by institutional investors and hedge funds.

About Hewlett Packard Enterprise

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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