Zacks Research Downgrades Hewlett Packard Enterprise (NYSE:HPE) to Hold

Hewlett Packard Enterprise (NYSE:HPE) was downgraded by equities research analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a report released on Monday,Zacks.com reports.

Other equities research analysts also recently issued research reports about the company. Weiss Ratings raised Hewlett Packard Enterprise from a “hold (c+)” rating to a “buy (b-)” rating in a report on Monday, June 29th. Loop Capital upgraded shares of Hewlett Packard Enterprise from a “hold” rating to a “buy” rating and increased their price target for the company from $23.00 to $75.00 in a report on Tuesday, June 2nd. The Goldman Sachs Group raised their price objective on shares of Hewlett Packard Enterprise from $32.00 to $79.00 and gave the company a “buy” rating in a research note on Wednesday, June 3rd. Bank of America boosted their price objective on shares of Hewlett Packard Enterprise from $38.00 to $80.00 and gave the stock a “buy” rating in a report on Tuesday, June 2nd. Finally, Piper Sandler restated a “neutral” rating and set a $63.00 target price (up from $23.00) on shares of Hewlett Packard Enterprise in a research report on Tuesday, June 2nd. Eleven investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. According to MarketBeat.com, Hewlett Packard Enterprise currently has an average rating of “Moderate Buy” and a consensus target price of $67.31.

Hewlett Packard Enterprise Price Performance

Shares of HPE opened at $52.40 on Monday. The company has a current ratio of 1.09, a quick ratio of 0.75 and a debt-to-equity ratio of 0.72. The stock’s 50 day moving average is $46.91 and its two-hundred day moving average is $32.70. Hewlett Packard Enterprise has a twelve month low of $19.64 and a twelve month high of $64.25. The firm has a market capitalization of $69.39 billion, a PE ratio of 48.97, a P/E/G ratio of 0.54 and a beta of 1.42.

Hewlett Packard Enterprise (NYSE:HPE) last posted its quarterly earnings results on Monday, June 1st. The technology company reported $0.79 EPS for the quarter, beating the consensus estimate of $0.54 by $0.25. Hewlett Packard Enterprise had a return on equity of 11.91% and a net margin of 3.94%.The business had revenue of $10.68 billion during the quarter, compared to analysts’ expectations of $9.78 billion. During the same period last year, the firm earned ($0.82) EPS. The company’s quarterly revenue was up 40.0% compared to the same quarter last year. Hewlett Packard Enterprise has set its FY 2026 guidance at 3.350-3.450 EPS and its Q3 2026 guidance at 0.880-0.930 EPS. Research analysts anticipate that Hewlett Packard Enterprise will post 2.88 earnings per share for the current year.

Insider Activity

In other news, SVP Kirt P. Karros sold 18,785 shares of Hewlett Packard Enterprise stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $48.50, for a total transaction of $911,072.50. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.44% of the stock is owned by corporate insiders.

Institutional Trading of Hewlett Packard Enterprise

A number of hedge funds have recently bought and sold shares of the company. Headlands Technologies LLC acquired a new position in Hewlett Packard Enterprise in the 2nd quarter valued at $26,000. SJS Investment Consulting Inc. boosted its holdings in shares of Hewlett Packard Enterprise by 159.5% during the first quarter. SJS Investment Consulting Inc. now owns 1,165 shares of the technology company’s stock worth $28,000 after purchasing an additional 716 shares during the last quarter. Union Savings Bank acquired a new stake in shares of Hewlett Packard Enterprise during the fourth quarter worth $30,000. Reflection Asset Management purchased a new stake in shares of Hewlett Packard Enterprise in the fourth quarter valued at $31,000. Finally, WealthCollab LLC increased its stake in Hewlett Packard Enterprise by 121.8% in the fourth quarter. WealthCollab LLC now owns 1,657 shares of the technology company’s stock valued at $40,000 after purchasing an additional 910 shares during the last quarter. Institutional investors and hedge funds own 80.78% of the company’s stock.

About Hewlett Packard Enterprise

Hewlett Packard Enterprise (HPE) is an enterprise technology company that designs, develops and sells IT infrastructure, software and services for business and government customers. Its core offerings span servers, storage, networking, and related software, together with consulting, integration and support services aimed at modernizing and managing enterprise IT environments. HPE’s product portfolio includes systems for traditional data centers as well as solutions for high-performance computing, edge computing and telecommunications infrastructure.

A major focus for HPE is hybrid cloud and consumption-based IT.