Hewlett Packard Enterprise (NYSE:HPE) Stock Falls 2% – What’s Next?

Hewlett Packard Enterprise Company (NYSE:HPE)’s share price dropped 2% on Tuesday. The company traded as low as $60.68 and last traded at $61.3530. Approximately 12,309,621 shares changed hands during trading, a decline of 42% from the average daily volume of 21,285,527 shares. The stock had previously closed at $62.63.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on HPE. Barclays boosted their target price on shares of Hewlett Packard Enterprise from $67.00 to $79.00 and gave the company an “overweight” rating in a research note on Thursday, September 3rd. Zacks Research raised Hewlett Packard Enterprise from a “hold” rating to a “strong-buy” rating in a report on Friday, September 4th. Bank of America upped their price objective on Hewlett Packard Enterprise from $80.00 to $82.00 and gave the company a “buy” rating in a research report on Monday, August 31st. Raymond James Financial raised their target price on Hewlett Packard Enterprise from $74.00 to $86.00 and gave the stock an “outperform” rating in a research report on Thursday, September 3rd. Finally, Weiss Ratings upgraded Hewlett Packard Enterprise from a “buy (b-)” rating to a “buy (b)” rating in a research note on Friday, September 4th. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, Hewlett Packard Enterprise currently has a consensus rating of “Moderate Buy” and a consensus target price of $69.18.

Hewlett Packard Enterprise Stock Performance

The company has a market cap of $81.44 billion, a PE ratio of 31.95, a PEG ratio of 0.56 and a beta of 1.43. The company has a current ratio of 1.11, a quick ratio of 0.72 and a debt-to-equity ratio of 0.65. The business’s 50 day moving average is $54.43 and its two-hundred day moving average is $42.17.

Hewlett Packard Enterprise (NYSE:HPE) last issued its earnings results on Wednesday, September 2nd. The technology company reported $1.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.93 by $0.18. Hewlett Packard Enterprise had a return on equity of 15.50% and a net margin of 6.60%.The company had revenue of $12.21 billion for the quarter, compared to the consensus estimate of $11.97 billion. During the same quarter last year, the company earned $0.44 EPS. The firm’s quarterly revenue was up 33.7% on a year-over-year basis. Hewlett Packard Enterprise has set its Q4 2026 guidance at 1.200-1.300 EPS and its FY 2026 guidance at 3.750-3.850 EPS. On average, equities research analysts anticipate that Hewlett Packard Enterprise Company will post 3.34 EPS for the current year.

Hewlett Packard Enterprise Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, October 16th. Shareholders of record on Thursday, September 17th will be issued a dividend of $0.1425 per share. This represents a $0.57 annualized dividend and a yield of 0.9%. The ex-dividend date is Thursday, September 17th. Hewlett Packard Enterprise’s dividend payout ratio (DPR) is currently 29.69%.

Insider Buying and Selling at Hewlett Packard Enterprise

In other news, CEO Antonio F. Neri sold 250,000 shares of the firm’s stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $60.44, for a total value of $15,110,000.00. Following the completion of the sale, the chief executive officer directly owned 1,432,393 shares of the company’s stock, valued at $86,573,832.92. This trade represents a 14.86% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Gary Reiner sold 17,000 shares of Hewlett Packard Enterprise stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $56.91, for a total value of $967,470.00. Following the completion of the transaction, the director owned 65,072 shares of the company’s stock, valued at approximately $3,703,247.52. This trade represents a 20.71% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 0.44% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. Capital World Investors purchased a new position in shares of Hewlett Packard Enterprise during the 4th quarter worth about $901,751,000. Elliott Investment Management L.P. lifted its stake in Hewlett Packard Enterprise by 47.2% in the first quarter. Elliott Investment Management L.P. now owns 27,421,735 shares of the technology company’s stock worth $652,912,000 after purchasing an additional 8,790,757 shares during the last quarter. Barrow Hanley Mewhinney & Strauss LLC purchased a new position in shares of Hewlett Packard Enterprise during the second quarter valued at approximately $1,027,139,000. Primecap Management Co. CA purchased a new position in shares of Hewlett Packard Enterprise during the second quarter valued at approximately $773,225,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in shares of Hewlett Packard Enterprise by 6.1% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 13,088,774 shares of the technology company’s stock valued at $590,435,000 after buying an additional 756,972 shares during the last quarter. Institutional investors own 80.78% of the company’s stock.

About Hewlett Packard Enterprise

Hewlett Packard Enterprise Company (NYSE:HPE) is a global technology company that provides information technology products, services and solutions for businesses, governments and other organizations. Its offerings are designed to help customers build, manage and secure data center, cloud and edge-computing environments.

HPE’s portfolio includes enterprise servers, high-performance computing systems, data storage, networking equipment, software and technology consulting services. The company also provides hybrid cloud and as-a-service solutions through HPE GreenLake, allowing customers to access and manage computing, storage, data protection and other IT capabilities through a flexible consumption model.