Hewlett Packard Enterprise (NYSE:HPE) Stock Price Down 7.2% - What's Next?

Key Points

• HPE shares fell 7.2% to about $51.11, with roughly 16.2 million shares traded. The decline pushed the stock well below its 50-day moving average of $59.71, though it remained above its 200-day average of $40.71.
• Analyst sentiment remains generally positive but mixed: HPE has a consensus “Moderate Buy” rating and an average price target of $65.44, while Barclays recently downgraded the stock to “equal weight” and cut its target to $77.
• The company reported strong quarterly results, with adjusted EPS of $1.11 and revenue of $12.21 billion, both above estimates, alongside 33.7% year-over-year revenue growth. HPE also pays a $0.1425 quarterly dividend, while insiders sold $37.3 million of shares during the last quarter.

Hewlett Packard Enterprise Company (NYSE:HPE - Get Free Report) dropped 7.2% during trading on Monday. The company traded as low as $50.83 and last traded at $51.1120. Approximately 16,202,049 shares traded hands during trading, a decline of 23% from the average daily volume of 21,011,434 shares. The stock had previously closed at $55.09.

Analyst Ratings Changes

HPE has been the topic of several research analyst reports. Barclays cut Hewlett Packard Enterprise from an "overweight" rating to an "equal weight" rating and decreased their target price for the stock from $83.00 to $77.00 in a report on Wednesday, October 14th. Morgan Stanley lifted their price target on Hewlett Packard Enterprise from $67.00 to $72.00 and gave the company an "overweight" rating in a report on Thursday, October 1st. Raymond James Financial upped 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 report on Thursday, September 3rd. Truist Financial reissued a "buy" rating and set a $75.00 price objective (up from $70.00) on shares of Hewlett Packard Enterprise in a report on Thursday, October 1st. Finally, UBS Group raised their price objective on shares of Hewlett Packard Enterprise from $59.00 to $66.00 and gave the company a "neutral" rating in a research report on Thursday, October 1st. Two investment 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. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $65.44.

Hewlett Packard Enterprise Price Performance

The company has a debt-to-equity ratio of 0.65, a quick ratio of 0.72 and a current ratio of 1.11. The company has a 50-day moving average price of $59.71 and a 200-day moving average price of $40.71. The firm has a market capitalization of $67.85 billion, a P/E ratio of 26.62, a price-to-earnings-growth ratio of 0.46 and a beta of 1.39.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) last released its quarterly earnings data on Wednesday, September 2nd. The technology company reported $1.11 EPS for the quarter, beating analysts' consensus estimates of $0.93 by $0.18. Hewlett Packard Enterprise had a return on equity of 15.50% and a net margin of 6.60%. The business had revenue of $12.21 billion during the quarter, compared to the consensus estimate of $11.97 billion. During the same quarter in the prior year, the company posted $0.44 earnings per share. The firm'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. On average, sell-side analysts predict that Hewlett Packard Enterprise Company will post 3.34 earnings per share for the current year.

Hewlett Packard Enterprise Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, October 16th. Investors of record on Thursday, September 17th were paid a dividend of $0.1425 per share. This represents a $0.57 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend was Thursday, September 17th. Hewlett Packard Enterprise's dividend payout ratio (DPR) is presently 29.69%.

Insider Buying and Selling

In other Hewlett Packard Enterprise news, EVP Rami Rahim sold 34,443 shares of Hewlett Packard Enterprise stock in a transaction dated Wednesday, October 21st. The stock was sold at an average price of $58.04, for a total transaction of $1,999,071.72. Following the transaction, the executive vice president directly owned 840,690 shares in the company, valued at approximately $48,793,647.60. The trade was a 3.94% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through 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 that occurred on Monday, October 5th. The shares were sold at an average price of $68.31, for a total value of $17,077,500.00. Following the completion of the transaction, the chief executive officer owned 1,182,393 shares of the company's stock, valued at $80,769,265.83. This represents a 17.45% 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. In the last quarter, insiders have sold 585,899 shares of company stock valued at $37,270,329. 0.44% of the stock is owned by company insiders.

Institutional Investors Weigh In On Hewlett Packard Enterprise

Several large investors have recently made changes to their positions in the stock. Irenic Capital Management LP purchased a new position in shares of Hewlett Packard Enterprise during the 1st quarter valued at $18,691,000. Gunderson Capital Management LLC bought a new stake in Hewlett Packard Enterprise during the third quarter valued at about $15,409,000. Generate Investment Management Ltd bought a new stake in Hewlett Packard Enterprise during the third quarter valued at about $19,340,000. Sanders Morris Harris LLC bought a new stake in Hewlett Packard Enterprise during the third quarter valued at about $1,661,000. Finally, Parkway Wealth Management Group LLC lifted its position in shares of Hewlett Packard Enterprise by 36.7% in the third quarter. Parkway Wealth Management Group LLC now owns 110,121 shares of the technology company's stock valued at $7,036,000 after acquiring an additional 29,551 shares in the last quarter. Institutional investors own 80.78% of the company's stock.

Hewlett Packard Enterprise Company Profile

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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