Hewlett Packard Enterprise (NYSE:HPE) Shares Down 5.1% on Analyst Downgrade

Hewlett Packard Enterprise Company (NYSE:HPE) shares traded down 5.1% during mid-day trading on Friday after UBS Group lowered their price target on the stock from $65.00 to $59.00. UBS Group currently has a neutral rating on the stock. Hewlett Packard Enterprise traded as low as $51.61 and last traded at $51.6840. Approximately 20,932,829 shares traded hands during trading, a decline of 1% from the average session volume of 21,088,676 shares. The stock had previously closed at $54.44.

Several other research firms have also recently weighed in on HPE. JPMorgan Chase & Co. raised their target price on shares of Hewlett Packard Enterprise from $37.00 to $68.00 and gave the company an “overweight” rating in a research note on Tuesday, June 2nd. Bank of America raised their price objective on Hewlett Packard Enterprise from $80.00 to $82.00 and gave the company a “buy” rating in a research report on Monday. Susquehanna boosted their target price on Hewlett Packard Enterprise from $21.00 to $65.00 and gave the stock a “neutral” rating in a research report on Tuesday, June 2nd. Wells Fargo & Company dropped their price target on Hewlett Packard Enterprise from $67.00 to $54.00 and set an “equal weight” rating for the company in a research note on Thursday. Finally, Barclays lifted their price objective on Hewlett Packard Enterprise from $67.00 to $79.00 and gave the stock an “overweight” rating in a research note on Thursday. Twelve equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $69.44.

Insiders Place Their Bets

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

Key Headlines Impacting Hewlett Packard Enterprise

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

• Positive Sentiment: HPE reported fiscal Q3 adjusted earnings of $1.11 per share on $12.21 billion in revenue, exceeding estimates of $0.93 and $11.97 billion, respectively. Revenue rose 33.7% year over year, while earnings increased sharply from $0.44 per share in the prior-year quarter. HPE Reports Fiscal 2026 Third Quarter Results
• Positive Sentiment: Management raised fiscal 2026 guidance to $3.75-$3.85 in adjusted EPS and $46-$47 billion in revenue, above consensus. It also projected fourth-quarter EPS of $1.20-$1.30 and said fiscal 2027 revenue could grow 13%-17%, supported by AI and networking demand. HPE raises annual forecasts
• Positive Sentiment: AI infrastructure momentum remains strong. Networking revenue reportedly climbed 75% year over year, including a 270% increase in routing revenue, while HPE expanded its collaboration with Oracle to deploy Juniper Networking across Oracle’s AI data centers. HPE and Oracle Deepen Networking Collaboration
• Positive Sentiment: Analyst support remains generally favorable. Argus reaffirmed its buy rating with a $70 target, while Raymond James raised its target to $86 and Citi increased its target to $76.
• Neutral Sentiment: HPE is scheduled to hold a Networking Investor Day on September 30, which could provide additional details on strategy, portfolio growth and the Juniper integration. Unusually high call-option activity also suggests elevated bullish speculation, although it is not a fundamental indicator.
• Negative Sentiment: The immediate pressure comes from shortages of memory, CPUs and other components. Supply limitations could delay deliveries and constrain margins, raising concerns about how sustainably HPE can convert its substantial AI backlog into profit. UBS, Wells Fargo and Piper Sandler maintained neutral or equivalent ratings and reduced their price targets.

Hedge Funds Weigh In On Hewlett Packard Enterprise

Several institutional investors have recently bought and sold shares of the business. Headlands Technologies LLC purchased a new position in Hewlett Packard Enterprise in the second quarter worth $26,000. Delos Wealth Advisors LLC acquired a new stake in shares of Hewlett Packard Enterprise in the second quarter worth $27,000. SJS Investment Consulting Inc. raised 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 purchased a new stake in Hewlett Packard Enterprise in the fourth quarter valued at $30,000. Finally, First Bancorp Inc ME acquired a new stake in Hewlett Packard Enterprise during the 2nd quarter worth about $30,000. 80.78% of the stock is owned by hedge funds and other institutional investors.

Hewlett Packard Enterprise Price Performance

The company has a debt-to-equity ratio of 0.72, a quick ratio of 0.75 and a current ratio of 1.09. The firm has a market cap of $68.25 billion, a PE ratio of 26.85, a price-to-earnings-growth ratio of 0.60 and a beta of 1.43. The stock has a 50 day simple moving average of $49.79 and a two-hundred day simple moving average of $37.68.

Hewlett Packard Enterprise (NYSE:HPE) last issued its quarterly earnings data on Wednesday, September 2nd. The technology company reported $1.11 earnings per share for the quarter, topping analysts’ consensus estimates of $0.93 by $0.18. Hewlett Packard Enterprise had a net margin of 6.60% and a return on equity of 15.75%. The business had revenue of $12.21 billion during the quarter, compared to the consensus estimate of $11.97 billion. During the same quarter in the prior year, the firm posted $0.44 earnings per share. The company’s revenue was up 33.7% compared to the same quarter last year. 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. Sell-side analysts expect that Hewlett Packard Enterprise Company will post 2.92 earnings per share for the current year.

Hewlett Packard Enterprise Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, October 16th. Stockholders of record on Thursday, September 17th will be issued a dividend of $0.1425 per share. This represents a $0.57 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Thursday, September 17th. Hewlett Packard Enterprise’s payout ratio is currently 53.27%.

Hewlett Packard Enterprise Company Profile

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.