Hewlett Packard Enterprise (NYSE:HPE) Stock Price Up 1.3% – Still a Buy?

Hewlett Packard Enterprise Company (NYSE:HPE) shot up 1.3% on Friday. The stock traded as high as $47.34 and last traded at $44.7340. 17,119,824 shares traded hands during trading, a decline of 18% from the average session volume of 20,980,936 shares. The stock had previously closed at $44.16.

Hewlett Packard Enterprise News Roundup

Here are the key news stories impacting Hewlett Packard Enterprise this week:

• Positive Sentiment: HPE’s networking rollout connects EdgeConnect with Mist and Aruba Central, bringing security, wired and wireless management into a unified, increasingly automated platform. This could strengthen its networking offering, though the article does not report financial results from the rollout. HPE networking rollout and valuation
• Positive Sentiment: HPE shares participated in a partial recovery among AI-server stocks after the group’s post-midterm sell-off. The rebound suggests some buyers returned to the sector, although trading across the group remains volatile. AI-server stocks rebound
• Neutral Sentiment: Valuation articles argue HPE may be substantially undervalued following its pullback and raised outlook. These are analyst-style assessments, not new company results or guarantees of a recovery. HPE valuation commentary
• Negative Sentiment: Super Micro Computer’s collaboration with NVIDIA adds to competition in AI servers, a key growth market for HPE. Its new GPU, cooling and rack-scale offerings could challenge HPE and other rivals. Super Micro and NVIDIA collaboration

Analysts Set New Price Targets

Several analysts have recently commented on the company. Daiwa Securities Group raised Hewlett Packard Enterprise from a “neutral” rating to an “outperform” rating and raised their target price for the stock from $65.00 to $75.00 in a research report on Friday, October 2nd. UBS Group raised their price objective on Hewlett Packard Enterprise from $59.00 to $66.00 and gave the stock a “neutral” rating in a research report on Thursday, October 1st. Wall Street Zen raised Hewlett Packard Enterprise from a “buy” rating to a “strong-buy” rating in a research note on Sunday, August 30th. JPMorgan Chase & Co. upped their target price on Hewlett Packard Enterprise from $68.00 to $70.00 in a report on Tuesday, August 25th. Finally, Piper Sandler upped their target price on Hewlett Packard Enterprise from $57.00 to $70.00 and gave the company a “neutral” rating in a report on Thursday, October 1st. Two investment analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and eight have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $65.44.

Hewlett Packard Enterprise Price Performance

The company has a debt-to-equity ratio of 0.65, a current ratio of 1.11 and a quick ratio of 0.72. The stock has a market capitalization of $59.38 billion, a P/E ratio of 23.30, a PEG ratio of 0.29 and a beta of 1.46. The stock’s fifty day moving average is $59.20 and its 200-day moving average is $41.39.

Hewlett Packard Enterprise (NYSE:HPE) last posted its earnings results on Wednesday, September 2nd. The technology company reported $1.11 earnings per share 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 analyst estimates of $11.97 billion. During the same period last year, the company earned $0.44 earnings per share. The business’s revenue was up 33.7% compared to the same quarter last year. 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 analysts anticipate that Hewlett Packard Enterprise Company will post 3.35 earnings per share for the current year.

Hewlett Packard Enterprise Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, October 16th. Investors of record on Thursday, September 17th were paid a $0.1425 dividend. This represents a $0.57 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date of this dividend was Thursday, September 17th. Hewlett Packard Enterprise’s dividend payout ratio (DPR) is presently 29.69%.

Insider Activity at Hewlett Packard Enterprise

In other Hewlett Packard Enterprise news, EVP Rami Rahim sold 34,456 shares of the stock in a transaction that occurred on Tuesday, September 29th. The stock was sold at an average price of $61.42, for a total transaction of $2,116,287.52. Following the transaction, the executive vice president owned 875,133 shares in the company, valued at $53,750,668.86. This trade represents a 3.79% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 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 shares were sold at an average price of $56.91, for a total transaction of $967,470.00. Following the completion of the transaction, the director directly owned 65,072 shares in the company, valued at approximately $3,703,247.52. This represents a 20.71% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 585,899 shares of company stock valued at $37,270,329. Corporate insiders own 0.44% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of HPE. Foster Group Inc. increased its holdings in Hewlett Packard Enterprise by 2.8% in the 3rd quarter. Foster Group Inc. now owns 5,341 shares of the technology company’s stock worth $341,000 after purchasing an additional 146 shares in the last quarter. Financial Insights Inc. raised its position in Hewlett Packard Enterprise by 3.3% in the third quarter. Financial Insights Inc. now owns 5,429 shares of the technology company’s stock valued at $347,000 after purchasing an additional 175 shares during the last quarter. Oakworth Capital Inc. boosted its stake in shares of Hewlett Packard Enterprise by 2.3% during the third quarter. Oakworth Capital Inc. now owns 8,159 shares of the technology company’s stock valued at $521,000 after purchasing an additional 181 shares in the last quarter. Joseph Group Capital Management grew its holdings in shares of Hewlett Packard Enterprise by 47.0% during the third quarter. Joseph Group Capital Management now owns 635 shares of the technology company’s stock worth $41,000 after purchasing an additional 203 shares during the last quarter. Finally, Baird Financial Group Inc. grew its holdings in shares of Hewlett Packard Enterprise by 1.4% during the second quarter. Baird Financial Group Inc. now owns 15,727 shares of the technology company’s stock worth $709,000 after purchasing an additional 212 shares during the last quarter. 80.78% of the stock is currently owned by institutional investors and hedge funds.

About Hewlett Packard Enterprise

Hewlett Packard Enterprise (HPE) is a global information technology company that provides products and services for businesses, governments and other organizations. Its offerings span servers and computing systems, data storage, networking, hybrid cloud, artificial intelligence and edge computing.

HPE sells systems such as HPE ProLiant servers and HPE Alletra storage, along with networking products through HPE Aruba Networking. Its HPE GreenLake platform provides cloud and IT services through a flexible, consumption-based model.