Hewlett Packard Enterprise (NYSE:HPE) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Friday. The firm currently has a $19.00 target price on the technology company’s stock. Zacks Investment Research‘s target price indicates a potential upside of 13.77% from the stock’s current price.
According to Zacks, “Estimates for Hewlett Packard have remained stable of late. We are encouraged by the company’s massive restructuring initiatives. On one hand, it is offloading low-margin businesses such as Enterprise Services and Software, which, in our opinion, will improvise the company’s margins over the long run. And on the other hand, it is enhancing its capabilities in the hybrid IT model as evident from the acquisitions of SimpliVity, Cloud Cruiser and Nimble Storage. We believe that the company’s focus on hybrid IT model will drive growth over the long run. Furthermore, Hewlett Packard’s announcement of returning $7 billion to shareholders by fiscal 2019 is also encouraging. Moreover, the stock has outperformed the industry in the year-to-date period.”
Several other equities analysts have also recently issued reports on the stock. Deutsche Bank boosted their price target on shares of Hewlett Packard Enterprise from $16.00 to $19.00 and gave the company a “buy” rating in a research report on Monday, January 29th. Maxim Group upped their price objective on shares of Hewlett Packard Enterprise from $15.00 to $17.00 and gave the stock a “hold” rating in a report on Friday, February 23rd. Pivotal Research restated a “hold” rating and issued a $20.00 price objective (up previously from $13.00) on shares of Hewlett Packard Enterprise in a report on Friday, February 23rd. JPMorgan Chase began coverage on shares of Hewlett Packard Enterprise in a report on Friday, March 2nd. They issued a “neutral” rating and a $21.00 price objective on the stock. Finally, Goldman Sachs began coverage on shares of Hewlett Packard Enterprise in a report on Wednesday, February 7th. They issued a “neutral” rating and a $16.00 price objective on the stock. Two research analysts have rated the stock with a sell rating, eighteen have assigned a hold rating and twelve have given a buy rating to the company’s stock. Hewlett Packard Enterprise currently has a consensus rating of “Hold” and an average price target of $17.38.
Hewlett Packard Enterprise (NYSE:HPE) last announced its quarterly earnings results on Thursday, February 22nd. The technology company reported $0.34 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.22 by $0.12. Hewlett Packard Enterprise had a net margin of 4.52% and a return on equity of 7.40%. The company had revenue of $7.70 billion for the quarter, compared to analysts’ expectations of $7.07 billion. During the same quarter in the previous year, the company earned $0.45 earnings per share. Hewlett Packard Enterprise’s quarterly revenue was up 11.6% on a year-over-year basis. equities analysts predict that Hewlett Packard Enterprise will post 1.4 EPS for the current fiscal year.
Hewlett Packard Enterprise declared that its Board of Directors has initiated a stock repurchase program on Thursday, February 22nd that permits the company to repurchase $5.50 billion in outstanding shares. This repurchase authorization permits the technology company to reacquire shares of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s board believes its stock is undervalued.
In other news, EVP Alan Richard May sold 50,158 shares of the company’s stock in a transaction that occurred on Friday, January 12th. The shares were sold at an average price of $15.50, for a total value of $777,449.00. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Margaret C. Whitman sold 242,165 shares of the company’s stock in a transaction that occurred on Tuesday, February 6th. The stock was sold at an average price of $15.27, for a total transaction of $3,697,859.55. Following the completion of the transaction, the director now owns 1,705,823 shares in the company, valued at approximately $26,047,917.21. The disclosure for this sale can be found here. In the last quarter, insiders sold 4,395,913 shares of company stock worth $78,549,177. Insiders own 1.18% of the company’s stock.
Several hedge funds and other institutional investors have recently modified their holdings of HPE. Newman Dignan & Sheerar Inc. bought a new position in Hewlett Packard Enterprise during the fourth quarter valued at approximately $207,000. BB&T Securities LLC bought a new position in Hewlett Packard Enterprise during the third quarter valued at approximately $156,000. Daiwa SB Investments Ltd. bought a new position in Hewlett Packard Enterprise during the fourth quarter valued at approximately $156,000. Clear Harbor Asset Management LLC bought a new position in Hewlett Packard Enterprise during the fourth quarter valued at approximately $158,000. Finally, Empirical Financial Services LLC bought a new position in Hewlett Packard Enterprise during the fourth quarter valued at approximately $159,000. Hedge funds and other institutional investors own 83.00% of the company’s stock.
About Hewlett Packard Enterprise
Hewlett Packard Enterprise Company is a provider of technology solutions. The Company’s segments include: Enterprise Group, Software, Financial Services and Corporate Investments. The Enterprise Group segment provides its customers with the technology infrastructure they need to optimize traditional information technology (IT).
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