Hewlett Packard Enterprise (HPE) Upgraded to “Buy” by Zacks Investment Research

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Zacks Investment Research upgraded shares of Hewlett Packard Enterprise (NYSE:HPE) from a hold rating to a buy rating in a report released on Wednesday, Zacks.com reports. They currently have $17.00 price target on the technology company’s stock.

According to Zacks, “Hewlett Packard is benefiting from its Intelligent Edge segment, which is driven by solid growth in Aruba Services and Aruba Product revenues. Consistent installed base growth is boosting Aruba Services, while strong growth across both wired and wireless LAN is enhancing Aruba Product revenues. Also, it is gaining from its focus on high-margin businesses, such as IoT, server, storage and Big Data. Additionally, cost-saving initiatives, operating margin expansion and a solid capital return strategy bode well for the company. Estimates have been stable ahead of the company's Q2 earnings release. The company has positive record of earnings surprises in recent quarters. However, the challenge imposed on the company due to the acquisition of EMC by Dell is a headwind. Moreover, reduced Tier one server sales is an overhang on the top line. Also, foreign exchange headwinds remain a concern.”

A number of other research firms have also recently commented on HPE. ValuEngine cut Hewlett Packard Enterprise from a hold rating to a sell rating in a research note on Thursday, February 28th. Credit Suisse Group started coverage on Hewlett Packard Enterprise in a research note on Thursday, April 11th. They set an underperform rating and a $14.00 target price on the stock. Daiwa Capital Markets started coverage on Hewlett Packard Enterprise in a research note on Monday, April 1st. They set a hold rating and a $16.00 target price on the stock. BMO Capital Markets reaffirmed a hold rating and set a $16.00 target price on shares of Hewlett Packard Enterprise in a research note on Thursday, February 21st. Finally, UBS Group cut Hewlett Packard Enterprise from a neutral rating to a sell rating and cut their target price for the company from $17.00 to $13.00 in a research note on Tuesday, March 12th. Four research analysts have rated the stock with a sell rating, seven have given a hold rating and four have given a buy rating to the company. The stock presently has an average rating of Hold and an average price target of $16.92.

Shares of NYSE HPE opened at $14.39 on Wednesday. The company has a current ratio of 0.94, a quick ratio of 0.80 and a debt-to-equity ratio of 0.56. Hewlett Packard Enterprise has a 1-year low of $12.09 and a 1-year high of $17.59. The company has a market cap of $19.72 billion, a price-to-earnings ratio of 9.22, a P/E/G ratio of 1.47 and a beta of 1.55.

Hewlett Packard Enterprise (NYSE:HPE) last released its earnings results on Thursday, May 23rd. The technology company reported $0.42 EPS for the quarter, beating analysts’ consensus estimates of $0.36 by $0.06. The firm had revenue of $7.15 billion for the quarter, compared to analysts’ expectations of $7.38 billion. Hewlett Packard Enterprise had a return on equity of 11.31% and a net margin of 2.11%. The company’s quarterly revenue was down 4.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.34 earnings per share. As a group, analysts predict that Hewlett Packard Enterprise will post 1.64 EPS for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 3rd. Investors of record on Wednesday, June 12th will be issued a $0.1125 dividend. The ex-dividend date is Tuesday, June 11th. This represents a $0.45 dividend on an annualized basis and a dividend yield of 3.13%. Hewlett Packard Enterprise’s payout ratio is 28.85%.

In related news, CEO Antonio F. Neri sold 384,445 shares of the business’s stock in a transaction that occurred on Friday, March 1st. The stock was sold at an average price of $16.50, for a total value of $6,343,342.50. Following the completion of the sale, the chief executive officer now owns 4,936 shares in the company, valued at $81,444. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Antonio F. Neri sold 591,276 shares of the business’s stock in a transaction that occurred on Tuesday, April 16th. The shares were sold at an average price of $16.51, for a total value of $9,761,966.76. Following the completion of the sale, the insider now owns 59,110 shares of the company’s stock, valued at approximately $975,906.10. The disclosure for this sale can be found here. Insiders sold 1,373,866 shares of company stock valued at $22,674,702 in the last quarter. 0.56% of the stock is owned by company insiders.

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Cerebellum GP LLC purchased a new stake in shares of Hewlett Packard Enterprise in the first quarter valued at approximately $25,000. Advantage Investment Management LLC boosted its holdings in shares of Hewlett Packard Enterprise by 148.6% in the first quarter. Advantage Investment Management LLC now owns 1,740 shares of the technology company’s stock valued at $27,000 after purchasing an additional 1,040 shares during the period. Legacy Bridge LLC purchased a new stake in shares of Hewlett Packard Enterprise in the fourth quarter valued at approximately $25,000. Truvestments Capital LLC purchased a new stake in shares of Hewlett Packard Enterprise in the first quarter valued at approximately $38,000. Finally, Private Ocean LLC boosted its holdings in shares of Hewlett Packard Enterprise by 34.9% in the first quarter. Private Ocean LLC now owns 2,584 shares of the technology company’s stock valued at $40,000 after purchasing an additional 668 shares during the period. Hedge funds and other institutional investors own 79.83% of the company’s stock.

About Hewlett Packard Enterprise

Hewlett Packard Enterprise Company operates as a technology company. The company operates through four segments: Hybrid IT, Intelligent Edge, Financial Services, and Corporate Investments. The Hybrid IT segment provides industry standard servers for multi-workload computing; mission-critical servers; converged storage solutions, including all-flash arrays and hybrid storage solutions; and traditional storage solutions comprising tape, storage networking, and disk products, such as HPE MSA and HPE XP.

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