HP (NYSE:HPQ) Shares Gap Down – Time to Sell?

HP Inc. (NYSE:HPQ) shares gapped down before the market opened on Monday . The stock had previously closed at $34.40, but opened at $33.40. HP shares last traded at $33.1370, with a volume of 4,497,113 shares trading hands.

Key Headlines Impacting HP

Here are the key news stories impacting HP this week:

• Positive Sentiment: HP introduced the Googlebook 14, a premium Chromebook-style laptop featuring a Snapdragon X Elite processor, 3K OLED display, enhanced phone-to-PC connectivity and sustainability certifications. The product could support HP’s premium-device positioning, although its near-term financial impact is uncertain. HP Googlebook 14 product announcement
• Neutral Sentiment: HP recently reported quarterly revenue of $15.68 billion and adjusted earnings of $0.83 per share, exceeding analyst expectations. However, that prior performance has been overshadowed by the company’s more cautious fiscal 2027 planning update.
• Negative Sentiment: HP said global PC unit volumes could decline by a mid-single-digit percentage in 2027 and withheld fiscal 2027 financial guidance while it assesses demand and rising component costs. The warning raises concerns about lower revenue, profitability and earnings visibility. HP braces for weaker PC demand in 2027
• Negative Sentiment: Morgan Stanley cautioned that unit and margin pressures may not be reflected in HPQ’s elevated, multi-year valuation levels. The assessment adds to investor concerns that the stock’s recent performance may be difficult to sustain if the PC downturn continues. Morgan Stanley assessment of HP margin pressures

Analysts Set New Price Targets

HPQ has been the subject of several research reports. Citigroup increased their price objective on shares of HP from $20.00 to $25.00 and gave the company a “neutral” rating in a report on Thursday, May 28th. Wells Fargo & Company lifted their target price on HP from $18.00 to $20.00 and gave the stock an “underweight” rating in a report on Thursday, May 28th. Wall Street Zen upgraded HP from a “hold” rating to a “buy” rating in a research report on Saturday, August 22nd. Royal Bank Of Canada assumed coverage on HP in a research note on Thursday, September 10th. They set a “sector perform” rating and a $33.00 price target for the company. Finally, Zacks Research upgraded HP from a “hold” rating to a “strong-buy” rating in a report on Monday, September 7th. Three research analysts have rated the stock with a Strong Buy rating, eight have assigned a Hold rating and five have given a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $25.77.

HP Trading Down 2.7%

The firm’s 50-day moving average price is $29.64 and its 200-day moving average price is $24.45. The stock has a market capitalization of $28.93 billion, a PE ratio of 12.24, a PEG ratio of 1.71 and a beta of 1.18.

HP (NYSE:HPQ) last issued its quarterly earnings data on Wednesday, August 26th. The computer maker reported $0.83 earnings per share for the quarter, topping the consensus estimate of $0.66 by $0.17. HP had a negative return on equity of 947.78% and a net margin of 4.14%.The company had revenue of $15.68 billion for the quarter, compared to analysts’ expectations of $14.44 billion. During the same period in the previous year, the firm posted $0.75 earnings per share. The firm’s revenue for the quarter was up 12.5% on a year-over-year basis. HP has set its FY 2026 guidance at 3.190-3.290 EPS and its Q4 2026 guidance at 0.690-0.790 EPS. On average, equities research analysts predict that HP Inc. will post 3.23 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider David McQuarrie sold 21,048 shares of HP stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $29.98, for a total value of $631,019.04. Following the completion of the sale, the insider directly owned 39,580 shares in the company, valued at $1,186,608.40. The trade was a 34.72% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 42,096 shares of company stock worth $1,218,890. Insiders own 0.18% of the company’s stock.

Institutional Trading of HP

Hedge funds and other institutional investors have recently bought and sold shares of the stock. BlackRock Inc. bought a new stake in shares of HP in the 2nd quarter valued at about $2,357,757,000. State Street Corp boosted its stake in HP by 1.5% in the second quarter. State Street Corp now owns 52,843,678 shares of the computer maker’s stock valued at $1,174,855,000 after acquiring an additional 757,961 shares in the last quarter. Geode Capital Management LLC grew its holdings in HP by 1.0% in the fourth quarter. Geode Capital Management LLC now owns 27,313,924 shares of the computer maker’s stock worth $607,373,000 after purchasing an additional 274,033 shares during the last quarter. Primecap Management Co. CA acquired a new position in shares of HP during the second quarter worth $545,984,000. Finally, Arrowstreet Capital Limited Partnership lifted its holdings in shares of HP by 12.5% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 9,427,979 shares of the computer maker’s stock valued at $210,055,000 after purchasing an additional 1,049,256 shares during the last quarter. Institutional investors own 77.53% of the company’s stock.

About HP

HP Inc is a global technology company that develops and sells personal computing and printing products and related services. Its Personal Systems business offers laptops, desktop computers, workstations, gaming PCs, monitors, peripherals and accessories for consumers, businesses and public-sector organizations.

Through its Printing business, HP provides home and office printers, commercial printing systems, supplies such as ink and toner, and managed print services. The company also offers software and solutions designed to support device management, security, productivity and digital workflows.

HP serves customers in markets around the world through direct sales, online channels, retailers, distributors and business partners.