Hewlett Packard Enterprise (NYSE:HPE) Shares Climb 4.2% – Here’s What Happened

Hewlett Packard Enterprise Company (NYSE:HPE)’s stock price was up 4.2% on Tuesday. The stock traded as high as $54.59 and last traded at $53.3590. Approximately 13,445,959 shares traded hands during mid-day trading, a decline of 36% from the average session volume of 20,960,129 shares. The stock had previously closed at $51.19.

Key Hewlett Packard Enterprise News

Here are the key news stories impacting Hewlett Packard Enterprise this week:

• Positive Sentiment: Zacks describes HPE as a potential long-term growth stock, and a separate Zacks screen lists it among value stocks with a Buy rating and high earnings yield. These assessments offer a counterpoint to the recent sector volatility. Why Hewlett Packard Enterprise is a Top Growth Stock for the Long-Term 5 Value Stocks to Buy as AI Volatility Reshapes the Market
• Neutral Sentiment: Investors are looking ahead to HPE’s November 23 earnings call for fresh evidence on performance and outlook. The articles provide no new company results or guidance ahead of that event. Hewlett Packard Enterprise stock faces November 23 earnings test
• Negative Sentiment: The main near-term drag is a broader sell-off in AI hardware: HPE and other server makers fell as investors continued to unwind positions after the midterm elections. Recent coverage also cites concerns about AI-infrastructure margins and public opposition to data-center development, weighing on the sector. Post-midterm sell-off hits AI hardware

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the stock. Wells Fargo & Company upped their price objective on shares of Hewlett Packard Enterprise from $54.00 to $63.00 and gave the company an “equal weight” rating in a research note on Thursday, October 1st. Morgan Stanley raised their target price on shares of Hewlett Packard Enterprise from $67.00 to $72.00 and gave the stock an “overweight” rating in a research note on Thursday, October 1st. Truist Financial restated a “buy” rating and set a $75.00 target price (up from $70.00) on shares of Hewlett Packard Enterprise in a report on Thursday, October 1st. Argus restated a “buy” rating and issued a $70.00 price target on shares of Hewlett Packard Enterprise in a research report on Friday, September 4th. Finally, Weiss Ratings upgraded Hewlett Packard Enterprise from a “buy (b-)” rating to a “buy (b)” rating in a research report on Friday, September 4th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and eight have given a Hold rating to the company’s stock. According to MarketBeat, Hewlett Packard Enterprise currently has an average rating of “Moderate Buy” and an average target price of $65.44.

Hewlett Packard Enterprise Stock Down 12.0%

The company has a debt-to-equity ratio of 0.65, a current ratio of 1.11 and a quick ratio of 0.72. The business’s 50 day simple moving average is $59.39 and its 200 day simple moving average is $41.27. The company has a market capitalization of $58.54 billion, a PE ratio of 18.08, a P/E/G ratio of 0.32 and a beta of 1.46.

Hewlett Packard Enterprise (NYSE:HPE) last posted its quarterly earnings results on Wednesday, September 2nd. The technology company reported $1.11 earnings per share for the quarter, beating the consensus estimate of $0.93 by $0.18. The business had revenue of $12.21 billion during the quarter, compared to analysts’ expectations of $11.97 billion. Hewlett Packard Enterprise had a net margin of 6.60% and a return on equity of 15.50%. The business’s revenue for the quarter was up 33.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.44 EPS. Hewlett Packard Enterprise has set its Q4 2026 guidance at 1.200-1.300 EPS and its FY 2026 guidance at 3.750-3.850 EPS. As a group, analysts anticipate that Hewlett Packard Enterprise Company will post 3.34 earnings per share for the current fiscal year.

Hewlett Packard Enterprise Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, October 16th. Investors of record on Thursday, September 17th were given a dividend of $0.1425 per share. This represents a $0.57 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date of this dividend was Thursday, September 17th. Hewlett Packard Enterprise’s dividend payout ratio (DPR) is presently 29.69%.

Insider Activity at Hewlett Packard Enterprise

In other Hewlett Packard Enterprise news, EVP Rami Rahim sold 34,443 shares of the company’s stock in a transaction dated Wednesday, October 21st. The shares were sold at an average price of $58.04, for a total value of $1,999,071.72. Following the transaction, the executive vice president owned 840,690 shares of the company’s stock, valued at $48,793,647.60. This represents a 3.94% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Gary M. Reiner sold 17,000 shares of the stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $56.91, for a total transaction of $967,470.00. Following the transaction, the director directly owned 65,072 shares of the company’s stock, valued at approximately $3,703,247.52. This trade represents a 20.71% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 585,899 shares of company stock worth $37,270,329. Company insiders own 0.44% of the company’s stock.

Hedge Funds Weigh In On Hewlett Packard Enterprise

Hedge funds have recently made changes to their positions in the stock. Barrow Hanley Mewhinney & Strauss LLC purchased a new stake in Hewlett Packard Enterprise during the second quarter worth about $1,027,139,000. Primecap Management Co. CA acquired a new position in Hewlett Packard Enterprise during the second quarter worth about $773,225,000. Legal & General Group Plc purchased a new position in Hewlett Packard Enterprise in the second quarter valued at about $512,721,000. Elliott Investment Management L.P. increased its holdings in Hewlett Packard Enterprise by 47.2% in the first quarter. Elliott Investment Management L.P. now owns 27,421,735 shares of the technology company’s stock valued at $652,912,000 after buying an additional 8,790,757 shares in the last quarter. Finally, Bank of New York Mellon Corp purchased a new position in Hewlett Packard Enterprise in the second quarter valued at about $322,718,000. Hedge funds and other institutional investors own 80.78% of the company’s stock.

Hewlett Packard Enterprise Company Profile

Hewlett Packard Enterprise Company (NYSE:HPE) is a global technology company that provides information technology solutions for businesses, governments and other organizations. Its offerings are designed to help customers build, manage and modernize data centers, hybrid cloud environments and edge computing operations.

HPE’s portfolio includes enterprise servers and compute systems, data storage, networking products, high-performance computing and artificial intelligence infrastructure.