Zacks Investment Research Lowers HP (NYSE:HPQ) to Sell

Zacks Investment Research lowered shares of HP (NYSE:HPQ) from a hold rating to a sell rating in a report issued on Thursday, Zacks.com reports. They currently have $21.00 price target on the computer maker’s stock.

According to Zacks, “HP is benefiting from strong growth in Personal Systems revenues. Increase in sales for commercial customers is a tailwind. The company is gaining from Windows 10 refresh cycle, which is likely to remain a tailwind. Rising demand for notebooks, desktops and workstations on the back of product innovation and differentiations is an upside. Further, improvement in product mix coupled with stringent cost control is driving margin expansion. The company's improving market share across the PC and Printer businesses makes us optimitistic. Estimates have been stable lately ahead of the company’s Q4 earnings release. However, macroeconomic, geopolitical and tariff related uncertainties are a headwind. Further, competition from Lenovo and Dell is a concern. Weakness in the Printing business, due to softness in EMEA market, remains an overhang.”

Other research analysts also recently issued reports about the company. ValuEngine raised HP from a sell rating to a hold rating in a report on Wednesday, October 2nd. UBS Group downgraded HP from a buy rating to a neutral rating and decreased their price target for the company from $26.00 to $20.00 in a report on Monday, September 16th. Barclays decreased their price target on HP from $21.00 to $20.00 and set an equal weight rating for the company in a report on Friday, August 23rd. Morgan Stanley decreased their price target on HP from $21.00 to $20.00 and set a weight rating for the company in a report on Friday, October 4th. Finally, Credit Suisse Group decreased their price target on HP from $21.00 to $18.00 and set a neutral rating for the company in a report on Friday, October 4th. Three research analysts have rated the stock with a sell rating, twelve have issued a hold rating and three have issued a buy rating to the company. The stock presently has a consensus rating of Hold and an average price target of $19.80.

NYSE:HPQ traded up $0.13 during trading hours on Thursday, reaching $19.52. The company had a trading volume of 21,217,413 shares, compared to its average volume of 11,513,799. HP has a 1-year low of $15.93 and a 1-year high of $25.49. The firm has a market cap of $28.47 billion, a PE ratio of 9.66, a price-to-earnings-growth ratio of 3.60 and a beta of 1.41. The business’s 50 day moving average price is $17.62 and its 200-day moving average price is $19.24.

HP (NYSE:HPQ) last announced its quarterly earnings results on Thursday, August 22nd. The computer maker reported $0.58 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.55 by $0.03. HP had a negative return on equity of 265.02% and a net margin of 7.18%. The company had revenue of $14.60 billion during the quarter, compared to the consensus estimate of $14.58 billion. During the same period in the previous year, the company posted $0.52 earnings per share. HP’s revenue for the quarter was up .1% on a year-over-year basis. On average, equities analysts anticipate that HP will post 2.21 earnings per share for the current year.

In related news, insider Dion J. Weisler sold 437,171 shares of the business’s stock in a transaction that occurred on Monday, August 26th. The stock was sold at an average price of $18.01, for a total transaction of $7,873,449.71. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.25% of the stock is currently owned by insiders.

Several institutional investors and hedge funds have recently modified their holdings of HPQ. Valeo Financial Advisors LLC boosted its stake in HP by 4.2% during the second quarter. Valeo Financial Advisors LLC now owns 12,516 shares of the computer maker’s stock worth $260,000 after buying an additional 502 shares during the last quarter. PagnatoKarp Partners LLC boosted its stake in HP by 4.4% during the second quarter. PagnatoKarp Partners LLC now owns 14,284 shares of the computer maker’s stock worth $299,000 after buying an additional 599 shares during the last quarter. Cornerstone Advisors Inc. boosted its stake in HP by 7.8% during the second quarter. Cornerstone Advisors Inc. now owns 8,719 shares of the computer maker’s stock worth $181,000 after buying an additional 632 shares during the last quarter. Montecito Bank & Trust boosted its stake in HP by 2.8% during the third quarter. Montecito Bank & Trust now owns 24,655 shares of the computer maker’s stock worth $467,000 after buying an additional 676 shares during the last quarter. Finally, Kanawha Capital Management LLC boosted its stake in HP by 4.7% during the second quarter. Kanawha Capital Management LLC now owns 15,356 shares of the computer maker’s stock worth $319,000 after buying an additional 695 shares during the last quarter. Hedge funds and other institutional investors own 79.84% 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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