Stock Traders Purchase High Volume of HP Call Options (NYSE:HPQ)

Key Points

• HP Inc. saw an unusual spike in options trading with 28,852 call options purchased, marking a 75% increase from the average daily volume.
• The company's stock price increased by 1.8% to $28.16, with a recent earnings report showing an EPS of $0.75, matching expectations, and revenue growth of 3.1% year-over-year.
• Analysts have mixed views on HP's stock, with price targets ranging from $26.00 to $30.00, and a consensus rating of "Hold" with an average target price of $28.71.

HP Inc. (NYSE:HPQ - Get Free Report) was the recipient of some unusual options trading activity on Tuesday. Stock traders bought 28,852 call options on the stock. This is an increase of 75% compared to the typical daily volume of 16,475 call options.

HP Trading Up 1.8%

NYSE:HPQ traded up $0.50 during mid-day trading on Tuesday, hitting $28.16. 8,330,377 shares of the company's stock were exchanged, compared to its average volume of 12,714,595. The company has a 50 day simple moving average of $27.62 and a 200-day simple moving average of $26.17. HP has a fifty-two week low of $21.21 and a fifty-two week high of $39.79. The firm has a market capitalization of $26.32 billion, a P/E ratio of 10.28, a PEG ratio of 2.23 and a beta of 1.29.

HP (NYSE:HPQ - Get Free Report) last posted its earnings results on Wednesday, August 27th. The computer maker reported $0.75 EPS for the quarter, hitting the consensus estimate of $0.75. HP had a net margin of 4.83% and a negative return on equity of 262.03%. The business had revenue of $13.93 billion for the quarter, compared to the consensus estimate of $13.69 billion. During the same period last year, the company earned $0.83 EPS. The firm's revenue was up 3.1% compared to the same quarter last year. HP has set its Q4 2025 guidance at 0.870-0.97 EPS. As a group, analysts expect that HP will post 3.56 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on HPQ. UBS Group lifted their price target on shares of HP from $26.00 to $29.00 and gave the company a "neutral" rating in a report on Thursday, August 28th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of HP in a report on Wednesday, October 8th. Wall Street Zen raised shares of HP from a "hold" rating to a "buy" rating in a report on Saturday. Barclays decreased their price target on shares of HP from $28.00 to $27.00 and set an "equal weight" rating on the stock in a report on Thursday, August 28th. Finally, HSBC set a $30.00 price target on shares of HP and gave the company a "buy" rating in a report on Tuesday, October 14th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, HP presently has an average rating of "Hold" and an average target price of $28.71.

Insider Buying and Selling

In other HP news, CEO Enrique Lores sold 34,282 shares of the firm's stock in a transaction dated Monday, September 29th. The shares were sold at an average price of $26.85, for a total value of $920,471.70. Following the transaction, the chief executive officer directly owned 3 shares of the company's stock, valued at $80.55. This trade represents a 99.99% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.38% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Plato Investment Management Ltd lifted its position in shares of HP by 1.2% in the 1st quarter. Plato Investment Management Ltd now owns 31,030 shares of the computer maker's stock worth $869,000 after purchasing an additional 363 shares during the period. Coppell Advisory Solutions LLC lifted its position in shares of HP by 4.4% in the 1st quarter. Coppell Advisory Solutions LLC now owns 8,747 shares of the computer maker's stock worth $223,000 after purchasing an additional 369 shares during the period. Fiduciary Financial Group LLC lifted its position in shares of HP by 3.2% in the 2nd quarter. Fiduciary Financial Group LLC now owns 12,712 shares of the computer maker's stock worth $324,000 after purchasing an additional 390 shares during the period. IHT Wealth Management LLC lifted its position in shares of HP by 3.3% in the 2nd quarter. IHT Wealth Management LLC now owns 12,470 shares of the computer maker's stock worth $305,000 after purchasing an additional 398 shares during the period. Finally, AdvisorNet Financial Inc lifted its position in shares of HP by 42.9% in the 3rd quarter. AdvisorNet Financial Inc now owns 1,349 shares of the computer maker's stock worth $37,000 after purchasing an additional 405 shares during the period. Institutional investors and hedge funds own 77.53% of the company's stock.

About HP

HP Inc provides products, technologies, software, solutions, and services to individual consumers, small- and medium-sized businesses, and large enterprises, including customers in the government, health, and education sectors worldwide. It operates through Personal Systems and Printing segments. The Personal Systems segment offers commercial personal computers (PCs), consumer PCs, workstations, thin clients, commercial tablets and mobility devices, retail point-of-sale systems, displays and other related accessories, software, support, and services for the commercial and consumer markets.

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