HP (NYSE:HPQ) Shares Gap Down - Should You Sell?

Key Points

• HP shares fell 3.8%, opening at $33.40 after previously closing at $34.40, and later trading near $33.14.
• Analyst sentiment remains cautious: HP has a consensus “Hold” rating and an average price target of $25.77, below the current share price. Recent ratings include multiple “Underweight,” “Neutral,” and “Hold” assessments.
• Despite the stock decline, HP exceeded quarterly expectations with $0.83 EPS versus $0.66 forecast and revenue of $15.68 billion, up 12.5% year over year.

HP Inc. (NYSE:HPQ - Get Free Report)'s share price gapped down prior to trading on Monday . The stock had previously closed at $34.40, but opened at $33.40. HP shares last traded at $33.1370, with a volume of 4,497,113 shares traded.

Wall Street Analyst Weigh In

HPQ has been the topic of a number of recent research reports. Morgan Stanley reduced their price objective on HP from $19.00 to $17.00 and set an "underweight" rating on the stock in a research note on Monday, August 24th. Barclays increased their target price on HP from $19.00 to $23.00 and gave the company an "underweight" rating in a report on Friday, August 28th. UBS Group lifted their price target on HP from $26.00 to $28.00 and gave the stock a "neutral" rating in a research note on Thursday, August 27th. TD Cowen boosted their price objective on HP from $26.00 to $30.00 and gave the company a "hold" rating in a research report on Thursday, August 27th. Finally, Citigroup raised their target price on shares of HP from $20.00 to $25.00 and gave the stock a "neutral" rating in a report on Thursday, May 28th. Three investment analysts have rated the stock with a Strong Buy rating, eight have issued a Hold rating and five have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $25.77.

HP Stock Down 3.8%

The company has a market capitalization of $29.84 billion, a PE ratio of 12.62, a price-to-earnings-growth ratio of 1.79 and a beta of 1.18. The stock's fifty day moving average price is $29.33 and its two-hundred day moving average price is $24.26.

HP (NYSE:HPQ - Get Free Report) last released its quarterly earnings results on Wednesday, August 26th. The computer maker reported $0.83 EPS for the quarter, beating analysts' consensus estimates of $0.66 by $0.17. HP had a negative return on equity of 947.78% and a net margin of 4.14%.The business had revenue of $15.68 billion during the quarter, compared to analyst estimates of $14.44 billion. During the same quarter in the prior year, the company posted $0.75 EPS. HP's quarterly revenue was up 12.5% compared to the same quarter last year. HP has set its FY 2026 guidance at 3.190-3.290 EPS and its Q4 2026 guidance at 0.690-0.790 EPS. On average, equities research analysts forecast that HP Inc. will post 3.23 EPS for the current year.

Insider Buying and Selling

In related news, insider David McQuarrie sold 21,048 shares of HP stock in a transaction on Friday, August 7th. The shares were sold at an average price of $29.98, for a total value of $631,019.04. Following the sale, the insider owned 39,580 shares in the company, valued at $1,186,608.40. The trade was a 34.72% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 42,096 shares of company stock valued at $1,218,890 over the last ninety days. Company insiders own 0.18% of the company's stock.

Institutional Investors Weigh In On HP

Large investors have recently modified their holdings of the stock. BlackRock Inc. purchased a new stake in HP in the second quarter worth about $2,357,757,000. Geode Capital Management LLC grew its holdings in shares of HP by 1.0% during the 4th quarter. Geode Capital Management LLC now owns 27,313,924 shares of the computer maker's stock worth $607,373,000 after acquiring an additional 274,033 shares during the period. Primecap Management Co. CA bought a new position in shares of HP in the 2nd quarter worth approximately $545,984,000. Arrowstreet Capital Limited Partnership raised its position in shares of HP by 12.5% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 9,427,979 shares of the computer maker's stock worth $210,055,000 after acquiring an additional 1,049,256 shares in the last quarter. Finally, Pacer Advisors Inc. lifted its stake in shares of HP by 42.8% in the 1st quarter. Pacer Advisors Inc. now owns 9,145,694 shares of the computer maker's stock valued at $175,689,000 after purchasing an additional 2,741,438 shares during the period. Institutional investors own 77.53% of the company's stock.

HP Company Profile

HP Inc is a global technology company that develops and sells personal computing and printing products and related services. Its Personal Systems business offers laptops, desktop computers, workstations, gaming PCs, monitors, peripherals and accessories for consumers, businesses and public-sector organizations.

Through its Printing business, HP provides home and office printers, commercial printing systems, supplies such as ink and toner, and managed print services. The company also offers software and solutions designed to support device management, security, productivity and digital workflows.

HP serves customers in markets around the world through direct sales, online channels, retailers, distributors and business partners.

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