Hewlett Packard Enterprise (NYSE:HPE) Shares Up 9.2% - What's Next?

Key Points

• HPE shares surged 9.2% to about $61.89 as investors rotated into AI server and infrastructure stocks, alongside Super Micro Computer and Dell.
• The company reported strong quarterly results, with adjusted EPS of $1.11 beating estimates of $0.93 and revenue rising 33.7% year over year to $12.21 billion. Analysts maintain a “Moderate Buy” consensus with an average price target of $69.18.
• Risks include valuation and insider selling: Evercore downgraded HPE to “In Line” after the rally, while CEO Antonio Neri sold $15.1 million of shares under a pre-arranged trading plan.

Hewlett Packard Enterprise Company (NYSE:HPE - Get Free Report) shares rose 9.2% on Thursday . The company traded as high as $61.84 and last traded at $61.8860. Approximately 4,670,580 shares changed hands during mid-day trading, a decline of 78% from the average daily volume of 21,315,863 shares. The stock had previously closed at $56.68.

More Hewlett Packard Enterprise News

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

• Positive Sentiment: AI server-sector rally: HPE advanced alongside Super Micro Computer and Dell as investors increased exposure to companies supplying servers and other hardware needed for expanding AI deployments. The broader sector move is the most immediate driver of HPE’s strength. AI Server Stocks Rally
• Positive Sentiment: AI infrastructure opportunity: Recent commentary points to HPE’s potential gains from new AI infrastructure wins, agentic AI adoption and longer-term connections between AI and quantum computing. HPE’s efforts to manage memory constraints through supplier coordination and better forecasting could also support its ability to fulfill demand. HPE AI Infrastructure Wins
• Neutral Sentiment: Performance remains ahead of much of technology: HPE’s strong year-to-date performance is drawing comparisons with the broader computer and technology sector. The relative strength supports investor interest, but also raises the bar for future results. HPE Versus Technology Stocks
• Negative Sentiment: Valuation and insider-selling concerns: Evercore downgraded HPE to “In Line,” citing a less attractive risk-reward balance after the stock’s sharp rally. Separately, CEO Antonio Neri sold 250,000 shares for about $15.1 million under a pre-arranged Rule 10b5-1 plan, while Director Gary Reiner sold 17,000 shares for roughly $967,000. Although the planned CEO sale is not necessarily a signal about business prospects, the transactions may temper bullish sentiment. HPE Rating Lowered to In-Line

Analysts Set New Price Targets

Several analysts have recently commented on the stock. Sanford C. Bernstein raised their price objective on shares of Hewlett Packard Enterprise from $35.00 to $62.00 and gave the company a "market perform" rating in a research report on Tuesday, June 2nd. Argus reiterated a "buy" rating and issued a $70.00 price target on shares of Hewlett Packard Enterprise in a research note on Friday, September 4th. JPMorgan Chase & Co. raised their price target on Hewlett Packard Enterprise from $37.00 to $68.00 and gave the company an "overweight" rating in a report on Tuesday, June 2nd. Wall Street Zen upgraded Hewlett Packard Enterprise from a "buy" rating to a "strong-buy" rating in a research report on Sunday, August 30th. Finally, Morgan Stanley cut their target price on Hewlett Packard Enterprise from $69.00 to $67.00 and set an "overweight" rating for the company in a research report on Thursday, September 3rd. One 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 stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $69.18.

Hewlett Packard Enterprise Trading Up 8.4%

The firm has a market cap of $81.58 billion, a P/E ratio of 32.01, a P/E/G ratio of 0.50 and a beta of 1.43. The stock has a 50 day simple moving average of $52.05 and a 200-day simple moving average of $39.89. 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 posted its 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. The firm had revenue of $12.21 billion during the quarter, compared to analyst estimates of $11.97 billion. Hewlett Packard Enterprise had a net margin of 6.60% and a return on equity of 15.50%. Hewlett Packard Enterprise's revenue for the quarter was up 33.7% compared to the same quarter last year. During the same period last year, the firm posted $0.44 earnings per share. 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 EPS for the current fiscal year.

Hewlett Packard Enterprise Dividend Announcement

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

Insider Activity at Hewlett Packard Enterprise

In related news, SVP Kirt Karros sold 18,785 shares of Hewlett Packard Enterprise stock in a transaction dated Monday, June 22nd. The stock was sold at an average price of $48.50, for a total value of $911,072.50. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Antonio Neri sold 250,000 shares of the business's stock in a transaction on Friday, September 11th. The shares were sold at an average price of $60.44, for a total transaction of $15,110,000.00. Following the transaction, the chief executive officer owned 1,432,393 shares in the company, valued at $86,573,832.92. This trade represents a 14.86% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 285,785 shares of company stock valued at $16,988,542. Insiders own 0.44% of the company's stock.

Hedge Funds Weigh In On Hewlett Packard Enterprise

A number of institutional investors have recently modified their holdings of HPE. Tidal Investments LLC increased its stake in shares of 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 buying an additional 677,528 shares during the period. BlueCrest Capital Management Ltd grew its holdings in Hewlett Packard Enterprise by 105.8% in the second quarter. BlueCrest Capital Management Ltd now owns 201,015 shares of the technology company's stock worth $9,068,000 after purchasing an additional 103,323 shares during the last quarter. Engineers Gate Manager LP acquired a new position in Hewlett Packard Enterprise during the 2nd quarter valued at about $13,408,000. SVB Wealth LLC acquired a new position in shares of Hewlett Packard Enterprise during the second quarter valued at about $237,000. Finally, Insight Wealth Partners LLC purchased a new position in shares of Hewlett Packard Enterprise in the second quarter worth $299,000. 80.78% of the stock is owned by hedge funds and other institutional investors.

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.

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