Hewlett Packard Enterprise (NYSE:HPE) Stock Falls 7.2% – Here’s Why

Hewlett Packard Enterprise Company (NYSE:HPE) traded down 7.2% during trading on Monday. The company traded as low as $50.83 and last traded at $51.1120. Approximately 16,202,049 shares traded hands during mid-day trading, a decline of 23% from the average session volume of 21,011,434 shares. The stock had previously closed at $55.09.

Analyst Ratings Changes

A number of equities research analysts have issued reports on the stock. Deutsche Bank Aktiengesellschaft began coverage on shares of Hewlett Packard Enterprise in a report on Tuesday, September 1st. They set a “buy” rating and a $62.00 price objective for the company. Susquehanna dropped their target price on shares of Hewlett Packard Enterprise from $65.00 to $62.00 and set a “neutral” rating for the company in a research report on Friday, September 4th. Bank of America upped their target price on shares of Hewlett Packard Enterprise from $80.00 to $82.00 and gave the stock a “buy” rating in a research report on Monday, August 31st. The Goldman Sachs Group raised their target price on shares of Hewlett Packard Enterprise from $75.00 to $80.00 and gave the company a “buy” rating in a research note on Tuesday, October 6th. Finally, Zacks Research upgraded shares of Hewlett Packard Enterprise from a “hold” rating to a “strong-buy” rating in a report on Friday, September 4th. Two analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and eight have issued a Hold rating to the company’s stock. According to MarketBeat, Hewlett Packard Enterprise presently has an average rating of “Moderate Buy” and an average price target of $65.44.

Hewlett Packard Enterprise Stock Performance

The firm has a market capitalization of $67.85 billion, a P/E ratio of 26.62, a P/E/G ratio of 0.46 and a beta of 1.39. The firm has a 50-day moving average price of $59.71 and a two-hundred day moving average price of $40.71. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.11 and a quick ratio of 0.72.

Hewlett Packard Enterprise (NYSE:HPE) last posted its quarterly earnings results on Wednesday, September 2nd. The technology company reported $1.11 EPS for the quarter, topping analysts’ consensus estimates of $0.93 by $0.18. The firm had revenue of $12.21 billion for the quarter, compared to analysts’ expectations of $11.97 billion. Hewlett Packard Enterprise had a net margin of 6.60% and a return on equity of 15.50%. The business’s revenue for the quarter was up 33.7% on a year-over-year basis. During the same period in the prior year, the business posted $0.44 earnings per share. 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, analysts forecast that Hewlett Packard Enterprise Company will post 3.34 EPS for the current fiscal year.

Hewlett Packard Enterprise Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, October 16th. Stockholders of record on Thursday, September 17th were given a dividend of $0.1425 per share. The ex-dividend date of this dividend was Thursday, September 17th. This represents a $0.57 dividend on an annualized basis and a dividend yield of 1.1%. Hewlett Packard Enterprise’s dividend payout ratio (DPR) is 29.69%.

Insider Activity

In related news, Director Gary M. Reiner sold 17,000 shares of the business’s 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 sale, the director owned 65,072 shares in the company, valued at approximately $3,703,247.52. The trade was a 20.71% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Antonio Neri sold 250,000 shares of the stock in a transaction that occurred on Monday, October 5th. The stock was sold at an average price of $68.31, for a total value of $17,077,500.00. Following the completion of the transaction, the chief executive officer directly owned 1,182,393 shares in the company, valued at approximately $80,769,265.83. This trade represents a 17.45% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 585,899 shares of company stock valued at $37,270,329. Corporate insiders own 0.44% of the company’s stock.

Institutional Investors Weigh In On Hewlett Packard Enterprise

Several large investors have recently modified their holdings of HPE. Irenic Capital Management LP bought a new stake in Hewlett Packard Enterprise during the 1st quarter valued at $18,691,000. Gunderson Capital Management LLC bought a new stake in Hewlett Packard Enterprise during the third quarter valued at about $15,409,000. Generate Investment Management Ltd purchased a new position in Hewlett Packard Enterprise in the third quarter valued at about $19,340,000. Sanders Morris Harris LLC purchased a new position in Hewlett Packard Enterprise in the third quarter valued at about $1,661,000. Finally, Parkway Wealth Management Group LLC raised its holdings in Hewlett Packard Enterprise by 36.7% in the third quarter. Parkway Wealth Management Group LLC now owns 110,121 shares of the technology company’s stock worth $7,036,000 after purchasing an additional 29,551 shares in 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 solutions for businesses, governments and other organizations. Its offerings are designed to help customers build, manage and modernize data centers, hybrid cloud environments and edge computing operations.

HPE’s portfolio includes enterprise servers and compute systems, data storage, networking products, high-performance computing and artificial intelligence infrastructure.