Hewlett Packard Enterprise (NYSE:HPE) Stock Price Up 3.4% - Here's What Happened

Key Points

• HPE shares rose 3.4% to about $58.64, with trading volume roughly 54% below the average daily level.
• Analysts maintain a consensus “Moderate Buy” rating with an average price target of $65.44, although recent targets and ratings were mixed.
• HPE reported quarterly EPS of $1.11 versus the $0.93 consensus estimate, while revenue reached $12.21 billion, up 33.7% year over year; the company also declared a $0.1425 quarterly dividend.

Shares of Hewlett Packard Enterprise Company (NYSE:HPE - Get Free Report) were up 3.4% during trading on Monday. The company traded as high as $59.40 and last traded at $58.6380. Approximately 9,731,052 shares were traded during trading, a decline of 54% from the average daily volume of 21,213,035 shares. The stock had previously closed at $56.69.

Analysts Set New Price Targets

HPE has been the subject of several research reports. Susquehanna decreased their price target on shares of Hewlett Packard Enterprise from $65.00 to $62.00 and set a "neutral" rating for the company in a research note on Friday, September 4th. Wells Fargo & Company boosted their price objective on shares of 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. Weiss Ratings upgraded shares of Hewlett Packard Enterprise from a "buy (b-)" rating to a "buy (b)" rating in a report on Friday, September 4th. Bank of America raised their target price on shares of Hewlett Packard Enterprise from $80.00 to $82.00 and gave the company a "buy" rating in a research note on Monday, August 31st. Finally, Barclays lowered shares of Hewlett Packard Enterprise from an "overweight" rating to an "equal weight" rating and lowered their target price for the company from $83.00 to $77.00 in a report on Wednesday, October 14th. Two equities research 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's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $65.44.

Hewlett Packard Enterprise Trading Up 3.4%

The firm has a 50-day moving average price of $59.26 and a 200-day moving average price of $47.63. 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 stock has a market cap of $77.84 billion, a PE ratio of 30.54, a price-to-earnings-growth ratio of 0.51 and a beta of 1.39.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) last announced its quarterly earnings results on Wednesday, September 2nd. The technology company reported $1.11 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.93 by $0.18. The company had revenue of $12.21 billion for 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%. Hewlett Packard Enterprise's revenue was up 33.7% compared to the same quarter last year. During the same quarter in the previous year, the business posted $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 analysts anticipate that Hewlett Packard Enterprise Company will post 3.34 EPS for the current fiscal year.

Hewlett Packard Enterprise Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, October 16th. Stockholders of record on Thursday, September 17th were issued a dividend of $0.1425 per share. This represents a $0.57 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend was Thursday, September 17th. Hewlett Packard Enterprise's dividend payout ratio is presently 29.69%.

Insider Activity at Hewlett Packard Enterprise

In other Hewlett Packard Enterprise news, EVP Rami Rahim sold 34,443 shares of the business's stock in a transaction dated Wednesday, October 21st. The stock was sold at an average price of $58.04, for a total value of $1,999,071.72. Following the completion of the transaction, the executive vice president owned 840,690 shares of the company's stock, valued at approximately $48,793,647.60. The trade was a 3.94% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Antonio F. Neri sold 250,000 shares of the company's stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $68.31, for a total transaction of $17,077,500.00. Following the transaction, the chief executive officer owned 1,182,393 shares in the company, valued at $80,769,265.83. This 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 have sold 585,899 shares of company stock valued at $37,270,329 over the last ninety days. Insiders own 0.44% of the company's stock.

Institutional Trading of Hewlett Packard Enterprise

A number of large investors have recently made changes to their positions in the stock. Barrow Hanley Mewhinney & Strauss LLC bought a new stake in Hewlett Packard Enterprise during the second quarter valued at about $1,027,139,000. Primecap Management Co. CA bought a new position in shares of Hewlett Packard Enterprise in the second quarter worth about $773,225,000. Legal & General Group Plc bought a new position in shares of Hewlett Packard Enterprise in the second quarter worth about $512,721,000. Elliott Investment Management L.P. lifted its position in shares of Hewlett Packard Enterprise by 47.2% during the 1st quarter. Elliott Investment Management L.P. now owns 27,421,735 shares of the technology company's stock valued at $652,912,000 after buying an additional 8,790,757 shares in the last quarter. Finally, Bank of New York Mellon Corp purchased a new position in shares of Hewlett Packard Enterprise during the 2nd quarter valued at about $322,718,000. 80.78% of the stock is currently owned by institutional investors.

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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