Hewlett Packard Enterprise (NYSE:HPE) Stock Price Down 2.3% - Should You Sell?

Key Points

• HPE shares fell 2.3% to about $68.72 amid higher-than-average trading volume, following a strong rally that has pushed valuation above historical averages.
• The company’s fundamentals remain positive: its latest quarter beat earnings and revenue expectations, networking growth guidance was raised, and its NVIDIA partnership could strengthen its position in enterprise AI infrastructure.
• Analyst sentiment is broadly favorable, with a consensus “Moderate Buy” rating, but Evercore downgraded the stock to “In-Line” over valuation concerns and set a $65 target. HPE also pays a $0.1425 quarterly dividend, while recent insider selling adds a note of caution.

Hewlett Packard Enterprise Company (NYSE:HPE - Get Free Report)'s stock price traded down 2.3% during trading on Tuesday. The company traded as low as $67.05 and last traded at $68.7160. Approximately 24,000,838 shares changed hands during mid-day trading, an increase of 13% from the average session volume of 21,272,793 shares. The stock had previously closed at $70.33.

Hewlett Packard Enterprise News Summary

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

• Positive Sentiment: HPE’s partnership with NVIDIA (NVDA) is strengthening its enterprise AI offerings and could help the company compete more effectively with Super Micro Computer and Dell in AI infrastructure. The opportunity supports longer-term growth in high-demand AI, networking and cloud markets. HPE Partners With NVDA: Can it Help Challenge SMCI & DELL?
• Positive Sentiment: Recent operating momentum remains constructive: HPE raised its networking revenue growth outlook, while its latest reported quarter exceeded analyst expectations for both earnings and revenue. These trends indicate continued demand for the company’s infrastructure portfolio. How Evercore’s Valuation-Driven Downgrade At Hewlett Packard Enterprise Has Changed Its Investment Story
• Neutral Sentiment: HPE’s technology was highlighted in coverage of the Ryder Cup as an example of autonomous enterprise operations. The exposure may reinforce the company’s digital-transformation credentials, but the event is unlikely to materially affect near-term earnings. HPE & Ryder Cup: Driving Autonomous Enterprise Operations
• Negative Sentiment: Evercore ISI downgraded HPE from Outperform to In-Line and maintained a $65 price target, citing stretched valuation after the rally. Analyst Amit Daryanani noted that HPE was trading at roughly 13 times fiscal 2027 earnings versus an approximately eight-times five-year average, leaving less room for further multiple expansion despite improving fundamentals. Why Hewlett Packard Enterprise Shares Are Trading Lower Today

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on HPE. Loop Capital decreased their target price on shares of Hewlett Packard Enterprise from $75.00 to $65.00 and set a "buy" rating on the stock in a research report on Tuesday, September 8th. The Goldman Sachs Group increased their price target on shares of Hewlett Packard Enterprise from $75.00 to $80.00 and gave the company a "buy" rating in a report on Tuesday, October 6th. Evercore lifted their price target on Hewlett Packard Enterprise from $65.00 to $67.00 and gave the stock an "outperform" rating in a research report on Thursday, October 1st. Wells Fargo & Company boosted their price objective on Hewlett Packard Enterprise from $54.00 to $63.00 and gave the stock an "equal weight" rating in a research note on Thursday, October 1st. Finally, Bank of America upped their price objective on Hewlett Packard Enterprise from $80.00 to $82.00 and gave the company a "buy" rating in a research report on Monday, August 31st. Two research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $65.78.

Hewlett Packard Enterprise Trading Down 2.3%

The company's 50 day moving average price is $58.65 and its two-hundred day moving average price is $45.45. The firm has a market cap of $91.22 billion, a PE ratio of 35.79, a P/E/G ratio of 0.65 and a beta of 1.39. The company has a quick ratio of 0.72, a current ratio of 1.11 and a debt-to-equity ratio of 0.65.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) last released its quarterly earnings results 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 firm had revenue of $12.21 billion during the quarter, compared to analysts' expectations of $11.97 billion. Hewlett Packard Enterprise had a net margin of 6.60% and a return on equity of 15.50%. The firm's revenue for the quarter was up 33.7% compared to the same quarter last year. During the same period in the previous 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. As a group, sell-side analysts forecast that Hewlett Packard Enterprise Company will post 3.34 EPS for the current year.

Hewlett Packard Enterprise Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 16th. Shareholders 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 0.8%. The ex-dividend date is Thursday, September 17th. Hewlett Packard Enterprise's payout ratio is 29.69%.

Insider Activity

In other news, CEO Antonio F. Neri sold 250,000 shares of Hewlett Packard Enterprise stock in a transaction 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. This trade represents a 14.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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 dated Monday, September 14th. The shares were 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 $3,703,247.52. The trade was a 20.71% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 551,456 shares of company stock valued at $35,271,258. 0.44% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Hewlett Packard Enterprise

A number of institutional investors have recently modified their holdings of the stock. Irenic Capital Management LP acquired a new position in shares of Hewlett Packard Enterprise in the 1st quarter valued at $18,691,000. Farther Finance Advisors LLC raised its stake in Hewlett Packard Enterprise by 45.7% in the 3rd quarter. Farther Finance Advisors LLC now owns 69,745 shares of the technology company's stock worth $4,456,000 after acquiring an additional 21,890 shares during the last quarter. Assenagon Asset Management S.A. increased its holdings in shares of Hewlett Packard Enterprise by 387.9% in the second quarter. Assenagon Asset Management S.A. now owns 1,240,000 shares of the technology company's stock valued at $55,936,000 after purchasing an additional 985,829 shares during the period. Eastern Bank raised its stake in shares of Hewlett Packard Enterprise by 206.4% in the third quarter. Eastern Bank now owns 28,994 shares of the technology company's stock worth $1,852,000 after purchasing an additional 19,532 shares during the last quarter. Finally, Sacks & Associates LLC purchased a new position in shares of Hewlett Packard Enterprise in the third quarter worth about $1,098,000. 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, 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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