HP (NYSE:HPQ) Stock Price Breaks Below Fifty Day Moving Average Following Insider Selling

Key Points

• HP shares fell below their 50-day moving average, trading as low as $26.96 and last changing hands at $28.82. The decline followed insider Anneliese Olson’s sale of approximately $618,542 in shares to cover tax withholding on vested equity awards.
• Analyst sentiment remains cautious, with HP carrying a consensus “Reduce” rating and an average price target of $25.42; nine analysts rate it a Hold and five rate it a Sell.
• HP recently beat quarterly earnings and revenue expectations, but concerns about memory shortages, weaker PC demand and margin pressure are weighing on the near-term outlook. Institutional investors own 77.53% of the company.

HP Inc. (NYSE:HPQ - Get Free Report) shares crossed below its 50-day moving average during trading on Friday following insider selling activity. The stock has a 50-day moving average of $31.73 and traded as low as $26.96. HP shares last traded at $28.82, with a volume of 29,894,922 shares trading hands.

Specifically, insider Anneliese Olson sold 18,997 shares of the stock in a transaction on Thursday, October 29th. The stock was sold at an average price of $32.56, for a total transaction of $618,542.32. Following the completion of the sale, the insider directly owned 169 shares in the company, valued at approximately $5,502.64. This trade represents a 99.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Analysts Set New Price Targets

A number of research analysts have commented on the company. Barclays boosted their target price on HP from $19.00 to $23.00 and gave the company an "underweight" rating in a research note on Friday, August 28th. Morgan Stanley cut their price target on HP from $19.00 to $17.00 and set an "underweight" rating for the company in a research note on Monday, August 24th. The Goldman Sachs Group lifted their price target on HP from $19.00 to $21.00 and gave the company a "sell" rating in a report on Wednesday, August 12th. Bank of America reissued an "underperform" rating on shares of HP in a research note on Thursday, August 27th. Finally, TD Cowen increased their price objective on HP from $26.00 to $30.00 and gave the stock a "hold" rating in a report on Thursday, August 27th. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Hold rating and five have issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and a consensus target price of $25.42.

Trending Headlines about HP

Here are the key news stories impacting HP this week:

• Positive Sentiment: HP’s lower valuation relative to Apple, along with continued adoption of AI-enabled PCs and demand for premium commercial devices, supports the stock’s long-term investment case. HPQ vs. AAPL: Which Computer Stock Offers Better Investment Potential?
• Positive Sentiment: HP previously exceeded quarterly expectations, reporting $0.83 in adjusted earnings per share versus a $0.66 consensus estimate and $15.68 billion in revenue, up 12.5% year over year. This provides some fundamental support, although investors are focused more heavily on forward PC demand. HP Inc. earnings preview: What to expect
• Neutral Sentiment: Insider Anneliese Olson sold approximately $618,542 of HP stock to cover tax withholding tied to vested equity awards. Because the sale was described as tax-related rather than discretionary, it is a limited signal about management’s outlook. Insider Selling: HP Insider Sells $618,542.32 in Stock
• Negative Sentiment: Intel’s warning that memory shortages are constraining PC demand triggered selling across computer and server makers, including HP. Investors fear tighter component availability, weaker PC shipments and margin pressure could weigh on HP’s upcoming results. Dell Sinks as Intel’s Warning Hits Hardware Stocks
• Negative Sentiment: Intel’s weak guidance and margin concerns reinforced fears of a broader PC-market downturn, increasing pressure on HP’s consumer-computing business and near-term earnings outlook. Silicon Shock: Intel’s 25% Valuation Reset
• Negative Sentiment: Zacks Research downgraded HP from “strong buy” to “hold,” adding to the cautious tone surrounding the stock. Broader analyst sentiment remains restrained, with concerns about slowing PC demand despite HP’s inexpensive valuation. Zacks Research stock recommendations

HP Price Performance

The stock has a market capitalization of $25.99 billion, a P/E ratio of 11.00, a PEG ratio of 1.65 and a beta of 1.17. The stock's fifty day moving average is $31.73 and its 200-day moving average is $24.54.

HP (NYSE:HPQ - Get Free Report) last posted its earnings results on Wednesday, August 26th. The computer maker reported $0.83 earnings per share for the quarter, beating the consensus estimate of $0.66 by $0.17. HP had a negative return on equity of 947.78% and a net margin of 4.14%. The company had revenue of $15.68 billion for the quarter, compared to analyst estimates of $14.44 billion. During the same period last year, the company earned $0.75 earnings per share. The business's 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, research analysts expect that HP Inc. will post 3.23 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. MassMutual Private Wealth & Trust FSB increased its holdings in HP by 10.3% in the second quarter. MassMutual Private Wealth & Trust FSB now owns 5,020 shares of the computer maker's stock valued at $110,000 after purchasing an additional 467 shares during the last quarter. Legacy Wealth Asset Management LLC lifted its stake in HP by 0.6% in the second quarter. Legacy Wealth Asset Management LLC now owns 80,784 shares of the computer maker's stock valued at $1,772,000 after buying an additional 491 shares during the period. Founders Financial Securities LLC boosted its holdings in HP by 0.8% during the third quarter. Founders Financial Securities LLC now owns 62,324 shares of the computer maker's stock worth $1,949,000 after buying an additional 496 shares during the last quarter. Cullinan Associates Inc. grew its position in shares of HP by 0.3% during the 2nd quarter. Cullinan Associates Inc. now owns 189,327 shares of the computer maker's stock worth $4,154,000 after buying an additional 540 shares during the period. Finally, Elevation Wealth Partners LLC grew its position in shares of HP by 2.5% during the 3rd quarter. Elevation Wealth Partners LLC now owns 22,488 shares of the computer maker's stock worth $703,000 after buying an additional 550 shares during the period. Institutional investors own 77.53% of the company's stock.

About HP

HP Inc NYSE: HPQ is a global technology company that develops personal computing and printing products, services, and solutions. Its portfolio includes laptops, desktop computers, workstations, monitors, peripherals, printers, digital printing systems, and related supplies such as ink and toner.

The company serves consumers, small and medium-sized businesses, large enterprises, and public-sector organizations through direct sales, online channels, retailers, distributors, and other business partners.

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