Hewlett Packard Enterprise (NYSE:HPE) Trading Down 1.1% - Here's Why

Key Points

• HPE shares fell 1.1% to $61.05 in mid-day trading, with volume 22% below the average daily level.
• Analyst sentiment remains positive but mixed: HPE has a “Moderate Buy” consensus rating and an average price target of $69.18, though Evercore downgraded the stock and Wells Fargo lowered its target.
• The company exceeded quarterly expectations, reporting $1.11 in EPS and $12.21 billion in revenue, while revenue rose 33.7% year over year. HPE also declared a quarterly dividend of $0.1425 per share, representing a 0.9% annualized yield.

Shares of Hewlett Packard Enterprise Company (NYSE:HPE - Get Free Report) were down 1.1% during mid-day trading on Tuesday . The company traded as low as $60.45 and last traded at $61.05. 16,634,997 shares were traded during mid-day trading, a decline of 22% from the average daily volume of 21,436,951 shares. The stock had previously closed at $61.75.

Analyst Ratings Changes

A number of research firms recently commented on HPE. Evercore cut Hewlett Packard Enterprise from an "outperform" rating to an "in-line" rating and set a $65.00 price objective for the company. in a research report on Monday, September 14th. Wells Fargo & Company dropped their target price on Hewlett Packard Enterprise from $67.00 to $54.00 and set an "equal weight" rating on the stock in a research report on Thursday, September 3rd. Truist Financial boosted their price target on Hewlett Packard Enterprise from $69.00 to $70.00 and gave the company a "buy" rating in a research note on Thursday, September 3rd. Loop Capital raised shares of Hewlett Packard Enterprise from a "hold" rating to a "buy" rating and upped their price target for the company from $23.00 to $75.00 in a research report on Tuesday, June 2nd. Finally, The Goldman Sachs Group increased their price objective on shares of Hewlett Packard Enterprise from $32.00 to $79.00 and gave the stock a "buy" rating in a research note on Wednesday, June 3rd. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and six have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $69.18.

Hewlett Packard Enterprise Stock Performance

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 firm has a market cap of $81.04 billion, a PE ratio of 31.80, a PEG ratio of 0.54 and a beta of 1.43. The business has a 50-day simple moving average of $52.83 and a 200 day simple moving average of $40.72.

Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) last announced its quarterly earnings data on Wednesday, September 2nd. The technology company reported $1.11 earnings per share (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 company had revenue of $12.21 billion during the quarter, compared to the consensus estimate of $11.97 billion. During the same period in the previous year, the company posted $0.44 EPS. 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. Equities research analysts forecast that Hewlett Packard Enterprise Company will post 3.34 EPS for the current year.

Hewlett Packard Enterprise Announces Dividend

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

Insider Buying and Selling at Hewlett Packard Enterprise

In other news, CEO Antonio F. Neri sold 250,000 shares of the business's stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $60.44, for a total value of $15,110,000.00. Following the transaction, the chief executive officer directly owned 1,432,393 shares in the company, valued at $86,573,832.92. The trade was a 14.86% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Gary Reiner sold 17,000 shares of the company's stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $56.91, for a total value of $967,470.00. Following the completion of the transaction, the director directly owned 65,072 shares of the company's stock, valued at approximately $3,703,247.52. This trade represents a 20.71% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.44% of the company's stock.

Institutional Trading of Hewlett Packard Enterprise

Several institutional investors and hedge funds have recently added to or reduced their stakes in HPE. Barrow Hanley Mewhinney & Strauss LLC bought a new stake in shares of Hewlett Packard Enterprise during the second quarter valued at approximately $1,027,139,000. Capital World Investors purchased a new position in Hewlett Packard Enterprise during the fourth quarter valued at $901,751,000. Geode Capital Management LLC increased its holdings in Hewlett Packard Enterprise by 1.3% in the 4th quarter. Geode Capital Management LLC now owns 34,869,143 shares of the technology company's stock valued at $835,626,000 after acquiring an additional 431,728 shares during the last quarter. Primecap Management Co. CA purchased a new stake in Hewlett Packard Enterprise in the 2nd quarter worth $773,225,000. Finally, Elliott Investment Management L.P. boosted its holdings 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 purchasing an additional 8,790,757 shares during 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 products, services and solutions for businesses and other organizations. Its offerings are designed to support data centers, cloud computing, artificial intelligence, networking and the management of distributed IT environments.

HPE's portfolio includes enterprise servers, data storage systems, networking equipment, high-performance computing and software. Through its HPE GreenLake platform, the company also delivers cloud and as-a-service solutions that allow customers to access computing, storage, data protection and other IT capabilities through a flexible consumption model.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.