Hewlett Packard Enterprise (NYSE:HPE) Stock Falls 1.4% - What's Next?

Key Points

• HPE shares fell 1.4% to $68.38 in Monday trading, with volume below the stock’s average. Despite the decline, the stock remains well above its 50-day and 200-day moving averages.
• Analyst sentiment remains positive: HPE has a consensus “Moderate Buy” rating, with several firms recently raising price targets to between $75 and $86.
• HPE reported stronger-than-expected quarterly results, including $1.11 in EPS and $12.21 billion in revenue, up 33.7% year over year. The company also declared a quarterly dividend of $0.1425 per share, while insiders sold more than $18 million of stock during the last quarter.

Hewlett Packard Enterprise Company (NYSE:HPE - Get Free Report) shares traded down 1.4% during trading on Monday. The company traded as low as $66.95 and last traded at $68.38. 15,702,445 shares changed hands during mid-day trading, a decline of 26% from the average session volume of 21,333,000 shares. The stock had previously closed at $69.33.

Analyst Ratings Changes

Several brokerages recently weighed in on HPE. Wall Street Zen upgraded Hewlett Packard Enterprise from a "buy" rating to a "strong-buy" rating in a research report on Sunday, August 30th. Raymond James Financial upped their price objective on Hewlett Packard Enterprise from $74.00 to $86.00 and gave the stock an "outperform" rating in a research report on Thursday, September 3rd. Truist Financial reaffirmed a "buy" rating and set a $75.00 price objective (up from $70.00) on shares of Hewlett Packard Enterprise in a research note on Thursday. Weiss Ratings upgraded shares of Hewlett Packard Enterprise from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, September 4th. Finally, Barclays increased their price target on shares of Hewlett Packard Enterprise from $79.00 to $83.00 and gave the stock an "overweight" rating in a report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and six have given a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $72.06.

Hewlett Packard Enterprise Stock Down 1.4%

The business has a 50-day moving average price of $55.81 and a 200-day moving average price of $43.39. The stock has a market cap of $90.77 billion, a PE ratio of 35.61, a price-to-earnings-growth ratio of 0.62 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 announced its earnings results on Wednesday, September 2nd. The technology company reported $1.11 earnings per share (EPS) for the quarter, beating 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 business 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 earnings per share. The company's revenue for the quarter 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. As a group, analysts forecast that Hewlett Packard Enterprise Company will post 3.34 earnings per share for the current year.

Hewlett Packard Enterprise Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 16th. Shareholders of record on Thursday, September 17th will be paid a dividend of $0.1425 per share. This represents a $0.57 annualized dividend and a yield of 0.8%. The ex-dividend date is Thursday, September 17th. Hewlett Packard Enterprise's payout ratio is 29.69%.

Insider Buying and Selling at Hewlett Packard Enterprise

In related news, CEO Antonio F. Neri sold 250,000 shares of the business's stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $60.44, for a total transaction of $15,110,000.00. Following the completion of the sale, the chief executive officer directly owned 1,432,393 shares in the company, valued at approximately $86,573,832.92. The trade was a 14.86% 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 the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Gary Reiner sold 17,000 shares of the 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 completion of the transaction, the director directly owned 65,072 shares of the company's stock, valued at approximately $3,703,247.52. This represents a 20.71% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 301,456 shares of company stock valued at $18,193,758 over the last quarter. 0.44% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Hewlett Packard Enterprise

A number of hedge funds have recently modified their holdings of HPE. Delos Wealth Advisors LLC acquired a new position in shares of Hewlett Packard Enterprise during the 2nd quarter worth approximately $27,000. First Bancorp Inc ME acquired a new position in Hewlett Packard Enterprise during the second quarter worth $30,000. Transamerica Financial Advisors LLC purchased a new position in shares of Hewlett Packard Enterprise during the 2nd quarter worth $37,000. SJS Investment Consulting Inc. boosted its position in shares of Hewlett Packard Enterprise by 159.5% during the 1st quarter. SJS Investment Consulting Inc. now owns 1,165 shares of the technology company's stock valued at $28,000 after acquiring an additional 716 shares during the last quarter. Finally, Ancora Advisors LLC purchased a new stake in shares of Hewlett Packard Enterprise in the second quarter valued at about $56,000. 80.78% of the stock is currently owned by institutional investors and hedge funds.

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, governments and other organizations. Its offerings are designed to help customers build, manage and secure data center, cloud and edge-computing environments.

HPE's portfolio includes enterprise servers, high-performance computing systems, data storage, networking equipment, software and technology consulting services. The company also provides hybrid cloud and as-a-service solutions through HPE GreenLake, allowing customers to access and manage computing, storage, data protection and other IT capabilities through a flexible consumption model.

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