HP’s (HPQ) “Underperform” Rating Reiterated at Bank of America

Bank of America reaffirmed their underperform rating on shares of HP (NYSE:HPQ) in a report issued on Tuesday, MarketBeat reports. They currently have a $20.00 price objective on the computer maker’s stock, down from their prior price objective of $26.00.

A number of other research analysts have also recently commented on HPQ. Argus raised HP to a “strong-buy” rating in a report on Tuesday, December 2nd. Weiss Ratings restated a “hold (c)” rating on shares of HP in a research note on Thursday, January 22nd. Evercore ISI dropped their target price on HP from $29.00 to $25.00 and set an “in-line” rating on the stock in a research note on Wednesday, November 26th. The Goldman Sachs Group cut shares of HP from a “neutral” rating to a “sell” rating and set a $21.00 price target for the company. in a report on Tuesday, January 13th. Finally, Hsbc Global Res upgraded HP from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, October 14th. Two investment analysts have rated the stock with a Strong Buy rating, one has given a Buy rating, ten have given a Hold rating and six have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Reduce” and an average target price of $24.31.

HP Stock Performance

HPQ opened at $19.17 on Tuesday. HP has a 52-week low of $18.32 and a 52-week high of $35.28. The stock’s 50 day moving average price is $22.21 and its 200-day moving average price is $25.09. The stock has a market capitalization of $17.59 billion, a PE ratio of 7.23, a price-to-earnings-growth ratio of 0.31 and a beta of 1.21.

HP (NYSE:HPQ) last posted its quarterly earnings data on Tuesday, November 25th. The computer maker reported $0.93 EPS for the quarter, topping the consensus estimate of $0.91 by $0.02. HP had a net margin of 4.57% and a negative return on equity of 330.68%. The business had revenue of $14.64 billion for the quarter, compared to analyst estimates of $14.50 billion. During the same quarter in the previous year, the firm posted $0.93 earnings per share. HP’s quarterly revenue was up 4.2% on a year-over-year basis. HP has set its FY 2026 guidance at 2.900-3.200 EPS and its Q1 2026 guidance at 0.730-0.810 EPS. Research analysts forecast that HP will post 3.56 EPS for the current fiscal year.

HP Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Wednesday, March 11th will be paid a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 6.3%. The ex-dividend date of this dividend is Wednesday, March 11th. HP’s payout ratio is 45.28%.

Insider Buying and Selling at HP

In related news, insider Anneliese Olson sold 16,726 shares of the firm’s stock in a transaction dated Tuesday, December 9th. The stock was sold at an average price of $24.83, for a total transaction of $415,306.58. Following the completion of the transaction, the insider directly owned 169 shares in the company, valued at $4,196.27. This trade represents a 99.00% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Ketan M. Patel sold 33,321 shares of the company’s stock in a transaction that occurred on Friday, December 26th. The stock was sold at an average price of $23.19, for a total transaction of $772,713.99. Following the sale, the insider directly owned 34,572 shares in the company, valued at approximately $801,724.68. The trade was a 49.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 91,969 shares of company stock valued at $2,277,993 over the last quarter. 0.38% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Mirae Asset Global Investments Co. Ltd. increased its stake in HP by 2.3% in the second quarter. Mirae Asset Global Investments Co. Ltd. now owns 125,430 shares of the computer maker’s stock valued at $3,068,000 after purchasing an additional 2,782 shares during the period. QRG Capital Management Inc. grew its holdings in HP by 32.6% in the second quarter. QRG Capital Management Inc. now owns 108,901 shares of the computer maker’s stock valued at $2,664,000 after purchasing an additional 26,792 shares during the last quarter. SteelPeak Wealth LLC grew its stake in HP by 1,117.4% in the 2nd quarter. SteelPeak Wealth LLC now owns 101,467 shares of the computer maker’s stock valued at $2,508,000 after acquiring an additional 93,132 shares during the last quarter. Shell Asset Management Co. lifted its stake in HP by 49.0% in the 2nd quarter. Shell Asset Management Co. now owns 82,726 shares of the computer maker’s stock valued at $2,023,000 after buying an additional 27,205 shares in the last quarter. Finally, Optas LLC acquired a new stake in shares of HP during the second quarter valued at $241,000. Institutional investors and hedge funds own 77.53% of the company’s stock.

Key Stories Impacting HP

Here are the key news stories impacting HP this week:

• Positive Sentiment: HP signed a multi‑year licensing agreement with Karamba Security to harden HP printers against cyber threats — a product-level win that reduces security risk and may preserve customer trust and enterprise contracts. HP and Karamba Security Sign Multi-Year Licensing Agreement to Protect HP’s Printers
• Positive Sentiment: UDT was named an HP 2025 Partner of the Year — a signal of partner ecosystem strength that can support sales and channel execution. UDT Awarded HP Partner of the Year for 2025
• Neutral Sentiment: Several analyst notes present mixed views on HP’s outlook and valuation, reflecting divergent takes on whether current multiples and guidance justify a buy. These mixed opinions create short‑term volatility but not a unanimous directional signal. Analysts’ Opinions Are Mixed on These Technology Stocks: HP (HPQ), Super Micro Computer (SMCI) and Lumentum Holdings (LITE)
• Neutral Sentiment: Reports that PC makers (including HP) are considering Chinese memory chips amid a global supply crunch highlight supply‑chain and cost pressures that could affect margins or product timing; impact depends on sourcing, quality and geopolitics. HP, Dell, Acer and Asus mull using Chinese memory chips amid supply crunch, Nikkei Asia reports
• Negative Sentiment: Bank of America issued an “Underperform” downgrade on HP, signaling lower analyst conviction and likely prompting selling pressure from institutional holders. HP (NYSE:HPQ) Earns “Underperform” Rating from Bank of America
• Negative Sentiment: Coverage and commentary on HP’s sudden CEO exit and related leadership shakeup raise execution and strategic‑direction concerns; even with a reaffirmed outlook, investors are re‑pricing management risk and near‑term uncertainty. Assessing HP (HPQ) Valuation After Sudden CEO Exit And Leadership Shake Up

About HP

HP Inc is an American multinational information technology company that designs, manufactures and sells personal computing devices, printers and related supplies and services. Its product portfolio spans consumer and commercial notebooks and desktops, workstations, displays and accessories, as well as an extensive line of printing hardware that includes home, office and production printers. HP also provides consumables such as ink and toner, managed print services, device deployment and lifecycle support, and software for device and print management.

Founded from the original Hewlett‑Packard Company, HP Inc became a separately traded public company in 2015 following a corporate split that created Hewlett Packard Enterprise to focus on enterprise hardware and services.