Zacks Investment Research Upgrades Hewlett Packard Enterprise Co. (HPE) to Buy
Hewlett Packard Enterprise Co. (NYSE:HPE) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Wednesday. The brokerage currently has a $25.00 price target on the stock. Zacks Investment Research’s price objective would indicate a potential upside of 11.66% from the stock’s previous close.
According to Zacks, “Hewlett Packard Enterprise Company was spun-off from the Hewlett-Packard Company in November 2015. The company operates in four segments: Enterprise Services, Enterprise Group, Software and Financial Services. The Enterprise Group is the company’s largest revenue contributor, accounting for more than half of total revenues. This segment offers servers, management software, converged infrastructure solutions and technology services; hybrid cloud solutions, business critical systems and storage products. The Software segment offers software to capture, store, explore, analyze, protect and share information and insights within and outside organizations; enterprise security, application delivery management, IT operations management software products. The Enterprise Services segment offers consulting, outsourcing and support services across infrastructure, applications and business process domains; application and business services. The company is headquartered in Palo Alto, California. “
A number of other analysts have also recently issued reports on the company. Vetr cut Hewlett Packard Enterprise from a “strong-buy” rating to a “buy” rating and set a $25.21 price objective for the company. in a research report on Wednesday, September 21st. Sanford C. Bernstein reissued an “outperform” rating and set a $24.50 price objective on shares of Hewlett Packard Enterprise in a research report on Tuesday, September 20th. Credit Suisse Group AG reissued an “outperform” rating and set a $25.00 price objective on shares of Hewlett Packard Enterprise in a research report on Saturday, September 3rd. Barclays PLC lifted their price objective on Hewlett Packard Enterprise from $16.00 to $17.00 and gave the company an “underweight” rating in a research report on Thursday, September 8th. Finally, Wells Fargo & Co. cut Hewlett Packard Enterprise from an “outperform” rating to a “market perform” rating in a research report on Thursday, September 8th. One investment analyst has rated the stock with a sell rating, sixteen have assigned a hold rating, fourteen have assigned a buy rating and one has given a strong buy rating to the company. Hewlett Packard Enterprise presently has an average rating of “Hold” and an average price target of $21.33.
Shares of Hewlett Packard Enterprise (NYSE:HPE) opened at 22.39 on Wednesday. The firm has a market cap of $37.29 billion and a price-to-earnings ratio of 9.34. The firm’s 50-day moving average price is $22.13 and its 200-day moving average price is $19.32. Hewlett Packard Enterprise has a 52 week low of $11.62 and a 52 week high of $23.53.
Hewlett Packard Enterprise (NYSE:HPE) last issued its earnings results on Wednesday, September 7th. The company reported $0.49 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.45 by $0.04. The business earned $12.20 billion during the quarter, compared to analysts’ expectations of $12.64 billion. Hewlett Packard Enterprise had a return on equity of 10.15% and a net margin of 8.31%. The company’s revenue for the quarter was down 3.9% on a year-over-year basis. Equities research analysts expect that Hewlett Packard Enterprise will post $1.92 EPS for the current fiscal year.
The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 2nd. Stockholders of record on Wednesday, October 12th will be paid a $0.055 dividend. The ex-dividend date of this dividend is Friday, October 7th. This represents a $0.22 annualized dividend and a dividend yield of 0.98%. Hewlett Packard Enterprise’s dividend payout ratio is currently 9.17%.
In other news, EVP Robert Youngjohns sold 8,622 shares of the company’s stock in a transaction that occurred on Tuesday, July 19th. The stock was sold at an average price of $19.69, for a total value of $169,767.18. Following the sale, the executive vice president now directly owns 18,033 shares in the company, valued at approximately $355,069.77. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP John F. Schultz sold 316,164 shares of the company’s stock in a transaction that occurred on Monday, September 26th. The shares were sold at an average price of $22.84, for a total value of $7,221,185.76. The disclosure for this sale can be found here. 0.57% of the stock is owned by insiders.
Several large investors have recently added to or reduced their stakes in the stock. Quadrature Capital Ltd bought a new stake in Hewlett Packard Enterprise during the first quarter valued at $3,400,000. Primecap Management Co. CA increased its position in shares of Hewlett Packard Enterprise by 10.7% in the first quarter. Primecap Management Co. CA now owns 56,167,415 shares of the company’s stock valued at $995,848,000 after buying an additional 5,432,750 shares during the last quarter. State Street Corp increased its position in shares of Hewlett Packard Enterprise by 1.0% in the first quarter. State Street Corp now owns 84,485,271 shares of the company’s stock valued at $1,497,931,000 after buying an additional 797,867 shares during the last quarter. Cypress Wealth Advisors LLC increased its position in shares of Hewlett Packard Enterprise by 0.3% in the first quarter. Cypress Wealth Advisors LLC now owns 16,852 shares of the company’s stock valued at $299,000 after buying an additional 48 shares during the last quarter. Finally, Hanlon Investment Management Inc. acquired a new position in shares of Hewlett Packard Enterprise during the first quarter valued at approximately $4,116,000. Institutional investors own 80.51% of the company’s stock.
Hewlett Packard Enterprise Company Profile
Hewlett Packard Enterprise Company (Hewlett Packard Enterprise) is engaged in offering information technology (IT) and enterprise services solutions. The Company focuses on technology solutions, which enables the customers to build cloud-enabled, mobile-ready solutions that is suited to their needs. The Company’s portfolio includes enterprise services, software and financial services businesses.
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