Hewlett Packard Enterprise (NYSE:HPE) Stock Price Up 2.4% - What's Next?

Key Points

• HPE shares rose 2.4% to about $72.14 on heavier-than-average volume, reaching an intraday high of $73.28 and a fresh record as investors responded to the company’s AI infrastructure momentum.
• HPE unveiled four AMD sixth-generation EPYC-powered ProLiant Gen13 servers aimed at AI inference, analytics, virtualization and other demanding workloads. Analysts have also raised price targets or upgraded the stock, contributing to its roughly 40% monthly rally.
• The outlook remains mixed: HPE reported stronger-than-expected quarterly earnings and 33.7% year-over-year revenue growth, but its elevated valuation, rising market yields and oil prices, recent insider selling, and the risk of profit-taking could pressure the shares.

Hewlett Packard Enterprise Company (NYSE:HPE - Get Free Report) was up 2.4% during mid-day trading on Wednesday. The stock traded as high as $73.28 and last traded at $72.1440. Approximately 25,475,140 shares traded hands during mid-day trading, an increase of 20% from the average daily volume of 21,306,883 shares. The stock had previously closed at $70.48.

Trending Headlines about Hewlett Packard Enterprise

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

• Positive Sentiment: HPE unveiled four ProLiant Gen13 servers powered by AMD’s sixth-generation EPYC processors. The systems are designed for enterprise AI inference, analytics, virtualization, simulation, and other compute-intensive workloads, strengthening HPE’s Cloud and AI growth story. HPE Accelerates Enterprise AI Innovation With Next-Generation AMD CPU-Powered Servers
• Positive Sentiment: The AMD-powered product launch helped HPE shares reach a fresh record high even as the broader technology market weakened, suggesting investors view the new systems as evidence of growing demand for HPE’s AI infrastructure portfolio. Why HPE Stock Hit a Record High Today?
• Positive Sentiment: Analyst support is adding momentum: Morgan Stanley raised its HPE price target following the company’s earnings and a major AI-related deal, while Daiwa upgraded the stock to Outperform from Neutral. Morgan Stanley Resets Hewlett Packard HPE Target After Earnings
• Positive Sentiment: Investors are increasingly emphasizing HPE’s networking opportunity, including technology from its Juniper Networks acquisition and stronger AMD partnership. The combination could expand HPE’s exposure to AI data-center connectivity beyond traditional servers. How HPE’s Juniper Acquisition Strengthens AMD Partnership
• Neutral Sentiment: The rally has been substantial, with shares gaining roughly 40% over the past month and reaching new highs. Positive earnings revisions may support further gains, but the rapid advance also increases the potential for profit-taking. Hewlett Packard Enterprise Just Surged 40% in a Month
• Negative Sentiment: Rising Treasury yields and oil prices are pressuring the broader market, while HPE’s elevated valuation and proximity to its high could make the stock more sensitive to weaker AI spending or disappointing guidance.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on HPE. Citigroup boosted their price objective on shares of Hewlett Packard Enterprise from $76.00 to $92.00 and gave the stock a "buy" rating in a report on Thursday, October 1st. UBS Group lifted their target price on Hewlett Packard Enterprise from $59.00 to $66.00 and gave the stock a "neutral" rating in a report on Thursday, October 1st. Barclays boosted their price target on Hewlett Packard Enterprise from $79.00 to $83.00 and gave the stock an "overweight" rating in a research note on Thursday, October 1st. Zacks Research raised Hewlett Packard Enterprise from a "hold" rating to a "strong-buy" rating in a report on Friday, September 4th. Finally, Weiss Ratings raised Hewlett Packard Enterprise from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, September 4th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $72.06.

Hewlett Packard Enterprise Trading Up 2.4%

The company has a market cap of $95.77 billion, a P/E ratio of 37.58, a P/E/G ratio of 0.61 and a beta of 1.39. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.11 and a quick ratio of 0.72. The stock's 50-day moving average is $56.71 and its two-hundred day moving average is $44.06.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) last released its quarterly earnings results on Wednesday, September 2nd. The technology company reported $1.11 earnings per share for the quarter, beating the consensus estimate of $0.93 by $0.18. The firm had revenue of $12.21 billion for the quarter, compared to analysts' expectations of $11.97 billion. Hewlett Packard Enterprise had a return on equity of 15.50% and a net margin of 6.60%.The company's revenue was up 33.7% compared to the same quarter last year. During the same period in the prior year, the firm 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, equities research analysts predict that Hewlett Packard Enterprise Company will post 3.34 earnings per share for the current fiscal year.

Hewlett Packard Enterprise Dividend Announcement

The company 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 $0.1425 dividend. This represents a $0.57 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend is Thursday, September 17th. Hewlett Packard Enterprise's dividend payout ratio (DPR) is presently 29.69%.

Insider Buying and Selling at Hewlett Packard Enterprise

In other news, Director Gary M. Reiner sold 17,000 shares of the company's 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 completion of the sale, the director owned 65,072 shares of the company's stock, valued at $3,703,247.52. This represents a 20.71% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Antonio Neri sold 250,000 shares of the stock in a transaction that occurred on Monday, October 5th. The stock was sold at an average price of $68.31, for a total transaction of $17,077,500.00. Following the completion of the transaction, the chief executive officer owned 1,182,393 shares in the company, valued at $80,769,265.83. This trade represents a 17.45% 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. Insiders sold a total of 551,456 shares of company stock worth $35,271,258 in the last three months. 0.44% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Hewlett Packard Enterprise

A number of hedge funds have recently modified their holdings of HPE. Barrow Hanley Mewhinney & Strauss LLC bought a new position in Hewlett Packard Enterprise in the 2nd quarter worth $1,027,139,000. Primecap Management Co. CA purchased a new stake in Hewlett Packard Enterprise in the second quarter worth about $773,225,000. 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 buying an additional 8,790,757 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in shares of Hewlett Packard Enterprise by 6.1% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 13,088,774 shares of the technology company's stock worth $590,435,000 after buying an additional 756,972 shares during the period. Finally, Legal & General Group Plc purchased a new position in shares of Hewlett Packard Enterprise during the 2nd quarter valued at about $512,721,000. 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 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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