Hewlett Packard Enterprise (NYSE:HPE) Stock Jumps 4.1% - Here's Why

Key Points

• HPE shares rose 4.1% to roughly $64 amid a 52% increase in trading volume, driven by news of a $1.2 billion Vultr order for AMD Helios AI Rack systems.
• The company raised its long-term networking growth outlook, citing demand from expanding AI infrastructure and a broader opportunity across data-center networking, routing, campus and security products.
• Analysts maintain a generally positive view, with a “Moderate Buy” consensus and a $69.18 average price target, though investors will closely monitor execution of the Vultr deployment and whether networking growth delivers sustained earnings gains.

Hewlett Packard Enterprise Company (NYSE:HPE - Get Free Report)'s stock price was up 4.1% during mid-day trading on Wednesday. The company traded as high as $67.10 and last traded at $64.0220. Approximately 32,457,240 shares traded hands during trading, an increase of 52% from the average daily volume of 21,347,873 shares. The stock had previously closed at $61.49.

More Hewlett Packard Enterprise News

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

• Positive Sentiment: $1.2 billion Vultr order: HPE secured its first order for AMD Helios AI Rack systems. Cloud infrastructure provider Vultr plans to deploy the systems across its U.S. data centers, giving HPE a significant customer for AMD’s latest rack-scale AI platform and reinforcing its position in AI infrastructure. HPE Secures Its First AMD Helios Order in $1.2 Billion Deal With Vultr
• Positive Sentiment: Networking growth outlook raised: At its Networking Investor Day, HPE outlined plans to accelerate profitable growth across data-center networking, routing, campus and branch products, and security. The company raised its long-term revenue growth expectations for networking, citing demand generated by AI infrastructure expansion. HPE boosts networking growth outlook, gets $1.2 billion AI order from cloud firm Vultr
• Positive Sentiment: AI platform validation: The AMD Helios systems combine AMD computing with HPE networking hardware and software, potentially expanding HPE’s role in large-scale enterprise and service-provider AI deployments. The announcement also improves visibility into future AI infrastructure revenue. Hewlett Packard Enterprise Stock Soars to Fresh Record on Raised Revenue Targets, $1.2B Server Deal
• Neutral Sentiment: Expectations and execution matter: HPE has already experienced a substantial 2026 rally, so investors may demand timely delivery of the Vultr systems, successful scaling of AMD Helios deployments, and evidence that the upgraded networking targets translate into sustained earnings growth.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on the company. Weiss Ratings upgraded Hewlett Packard Enterprise from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, September 4th. Piper Sandler reaffirmed a "neutral" rating and issued a $57.00 price target (down from $63.00) on shares of Hewlett Packard Enterprise in a research note on Thursday, September 3rd. Argus reaffirmed a "buy" rating and issued a $70.00 target price on shares of Hewlett Packard Enterprise in a research report on Friday, September 4th. Morgan Stanley reduced their price target on shares of Hewlett Packard Enterprise from $69.00 to $67.00 and set an "overweight" rating on the stock in a research report on Thursday, September 3rd. Finally, Raymond James Financial increased their price target on shares of Hewlett Packard Enterprise from $74.00 to $86.00 and gave the stock an "outperform" rating in a research note on Thursday, September 3rd. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $69.18.

Hewlett Packard Enterprise Trading Up 4.1%

The stock's fifty day moving average price is $54.72 and its 200 day moving average price is $42.45. The stock has a market cap of $84.99 billion, a P/E ratio of 33.34, a PEG ratio of 0.56 and a beta of 1.43. 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 issued its quarterly earnings results on Wednesday, September 2nd. The technology company reported $1.11 earnings per share (EPS) 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 company had revenue of $12.21 billion during the quarter, compared to analyst estimates of $11.97 billion. During the same period last year, the business earned $0.44 EPS. Hewlett Packard Enterprise's quarterly 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. Equities research analysts expect that Hewlett Packard Enterprise Company will post 3.34 earnings per share for the current year.

Hewlett Packard Enterprise Announces Dividend

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

Insider Activity at Hewlett Packard Enterprise

In other Hewlett Packard Enterprise news, Director Gary Reiner sold 17,000 shares of the business's stock in a transaction on Monday, September 14th. The stock was sold at an average price of $56.91, for a total value of $967,470.00. Following the sale, the director directly owned 65,072 shares of the company's stock, valued at approximately $3,703,247.52. The trade was a 20.71% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Antonio F. Neri sold 250,000 shares of the firm's stock in a transaction on 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 transaction, the chief executive officer owned 1,432,393 shares of the company's stock, valued at $86,573,832.92. The trade was a 14.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.44% of the company's stock.

Hedge Funds Weigh In On Hewlett Packard Enterprise

A number of hedge funds have recently bought and sold shares of HPE. Capital World Investors bought a new position in shares of Hewlett Packard Enterprise in the fourth quarter worth approximately $901,751,000. Barrow Hanley Mewhinney & Strauss LLC bought a new position in Hewlett Packard Enterprise in the 2nd quarter valued at approximately $1,027,139,000. Primecap Management Co. CA purchased a new stake in Hewlett Packard Enterprise during the 2nd quarter valued at $773,225,000. Legal & General Group Plc bought a new stake in shares of Hewlett Packard Enterprise in the 2nd quarter worth $512,721,000. Finally, Elliott Investment Management L.P. raised its stake in shares of Hewlett Packard Enterprise by 47.2% in the first quarter. Elliott Investment Management L.P. now owns 27,421,735 shares of the technology company's stock worth $652,912,000 after purchasing an additional 8,790,757 shares during the last quarter. Institutional investors 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, 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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