HP (NYSE:HPQ) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Thursday, Zacks.com reports. They currently have a $21.00 target price on the computer maker’s stock. Zacks Investment Research‘s target price would indicate a potential upside of 7.58% from the company’s previous close.
According to Zacks, “HP is benefiting from strong growth in Personal Systems revenues. Increase in sales for commercial customers is a tailwind. The company is gaining from Windows 10 refresh cycle, which is likely to remain a tailwind. Rising demand for notebooks, desktops and workstations on the back of product innovation and differentiations is an upside. Further, improvement in product mix coupled with stringent cost control is driving margin expansion. The company's improving market share across the PC and Printer businesses makes us optimitistic. Estimates have been stable lately ahead of the company’s Q4 earnings release. However, macroeconomic, geopolitical and tariff related uncertainties are a headwind. Further, competition from Lenovo and Dell is a concern. Weakness in the Printing business, due to softness in EMEA market, remains an overhang.”
A number of other brokerages also recently weighed in on HPQ. Barclays dropped their target price on shares of HP from $21.00 to $20.00 and set an “equal weight” rating for the company in a research note on Friday, August 23rd. ValuEngine raised shares of HP from a “sell” rating to a “hold” rating in a research note on Wednesday, October 2nd. Wells Fargo & Co raised shares of HP to a “market perform” rating and dropped their target price for the stock from $23.00 to $20.00 in a research note on Friday, August 23rd. Argus downgraded shares of HP from a “buy” rating to a “hold” rating in a research note on Monday, October 7th. Finally, Goldman Sachs Group downgraded shares of HP from a “neutral” rating to a “sell” rating and dropped their price target for the stock from $18.00 to $14.00 in a research note on Thursday, October 10th. Three investment analysts have rated the stock with a sell rating, twelve have issued a hold rating and three have issued a buy rating to the company. The company presently has a consensus rating of “Hold” and a consensus target price of $19.80.
Shares of NYSE HPQ traded up $0.13 during trading on Thursday, reaching $19.52. The company had a trading volume of 21,217,413 shares, compared to its average volume of 11,513,799. HP has a 52 week low of $15.93 and a 52 week high of $25.49. The stock has a market cap of $28.47 billion, a PE ratio of 9.66, a PEG ratio of 3.60 and a beta of 1.41. The business’s 50 day moving average price is $17.62 and its 200-day moving average price is $19.24.
HP (NYSE:HPQ) last announced its earnings results on Thursday, August 22nd. The computer maker reported $0.58 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.55 by $0.03. HP had a net margin of 7.18% and a negative return on equity of 265.02%. The company had revenue of $14.60 billion during the quarter, compared to the consensus estimate of $14.58 billion. During the same period in the previous year, the firm posted $0.52 earnings per share. The company’s revenue was up .1% on a year-over-year basis. As a group, equities analysts expect that HP will post 2.21 EPS for the current year.
In related news, insider Dion J. Weisler sold 437,171 shares of the business’s stock in a transaction that occurred on Monday, August 26th. The shares were sold at an average price of $18.01, for a total transaction of $7,873,449.71. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 0.25% of the company’s stock.
Several institutional investors and hedge funds have recently bought and sold shares of HPQ. Rothschild & Co Wealth Management UK Ltd bought a new stake in shares of HP during the second quarter worth approximately $33,000. Transamerica Financial Advisors Inc. bought a new stake in HP in the second quarter valued at approximately $38,000. Coastal Capital Group Inc. bought a new stake in HP in the second quarter valued at approximately $39,000. Redhawk Wealth Advisors Inc. bought a new stake in HP in the second quarter valued at approximately $41,000. Finally, Berman Capital Advisors LLC increased its stake in HP by 378.6% in the second quarter. Berman Capital Advisors LLC now owns 2,034 shares of the computer maker’s stock valued at $42,000 after purchasing an additional 1,609 shares in the last quarter. 79.84% of the stock is owned by institutional investors and hedge funds.
HP Company Profile
HP Inc provides products, technologies, software, solutions, and services to individual consumers, small- and medium-sized businesses, and large enterprises, including customers in the government, health, and education sectors worldwide. It operates through Personal Systems and Printing segments. The Personal Systems segment offers commercial personal computers (PCs), consumer PCs, workstations, thin clients, commercial tablets and mobility devices, retail point-of-sale systems, displays and other related accessories, software, support, and services for the commercial and consumer markets.
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