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

Hewlett Packard Enterprise Company (NYSE:HPE)’s share price gapped down prior to trading on Monday after Evercore downgraded the stock from an outperform rating to an in-line rating. The stock had previously closed at $62.09, but opened at $55.61. Evercore now has a $65.00 price target on the stock. Hewlett Packard Enterprise shares last traded at $56.3160, with a volume of 6,548,623 shares.

HPE has been the topic of several other reports. JPMorgan Chase & Co. lifted their price target on Hewlett Packard Enterprise from $37.00 to $68.00 and gave the stock an “overweight” rating in a research report on Tuesday, June 2nd. Zacks Research raised Hewlett Packard Enterprise from a “hold” rating to a “strong-buy” rating in a research report on Friday, September 4th. Barclays boosted their target price on shares of Hewlett Packard Enterprise from $67.00 to $79.00 and gave the stock an “overweight” rating in a research report on Thursday, September 3rd. Deutsche Bank Aktiengesellschaft started coverage on shares of Hewlett Packard Enterprise in a research note on Tuesday, September 1st. They set a “buy” rating and a $62.00 target price for the company. Finally, Bank of America raised their price target on shares of Hewlett Packard Enterprise from $80.00 to $82.00 and gave the stock a “buy” rating in a research report on Monday, August 31st. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $69.18.

Insiders Place Their Bets

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

Hedge Funds Weigh In On Hewlett Packard Enterprise

Hedge funds and other institutional investors have recently modified their holdings of the stock. California State Teachers Retirement System raised its stake in Hewlett Packard Enterprise by 4,299.0% during the second quarter. California State Teachers Retirement System now owns 92,484,612 shares of the technology company’s stock worth $4,171,981,000 after acquiring an additional 90,382,225 shares in the last quarter. Capital World Investors acquired a new stake in shares of Hewlett Packard Enterprise during the 4th quarter worth about $901,751,000. Barrow Hanley Mewhinney & Strauss LLC bought a new position in Hewlett Packard Enterprise during the 2nd quarter valued at about $1,027,139,000. Primecap Management Co. CA acquired a new position in Hewlett Packard Enterprise in the second quarter valued at about $773,225,000. Finally, Legal & General Group Plc bought a new stake in Hewlett Packard Enterprise during the second quarter worth about $512,721,000. Institutional investors own 80.78% of the company’s stock.

Hewlett Packard Enterprise Trading Down 9.6%

The company’s fifty day moving average price is $51.32 and its two-hundred day moving average price is $39.14. The company has a quick ratio of 0.72, a current ratio of 1.11 and a debt-to-equity ratio of 0.65. The company has a market cap of $74.52 billion, a price-to-earnings ratio of 29.36, a price-to-earnings-growth ratio of 0.55 and a beta of 1.43.

Hewlett Packard Enterprise (NYSE:HPE) last announced its earnings results on Wednesday, September 2nd. The technology company reported $1.11 earnings per share for the quarter, beating analysts’ consensus estimates of $0.93 by $0.18. The company had revenue of $12.21 billion during the quarter, compared to analyst estimates of $11.97 billion. Hewlett Packard Enterprise had a return on equity of 15.50% and a net margin of 6.60%.The firm’s quarterly revenue was up 33.7% compared to the same quarter last year. During the same period last year, the company posted $0.44 earnings per share. 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. Research analysts expect that Hewlett Packard Enterprise Company will post 3.34 earnings per share for the current year.

Hewlett Packard Enterprise Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 16th. Shareholders of record on Thursday, September 17th will be given a dividend of $0.1425 per share. The ex-dividend date is Thursday, September 17th. This represents a $0.57 annualized dividend and a dividend yield of 1.0%. Hewlett Packard Enterprise’s payout ratio is presently 29.69%.

About Hewlett Packard Enterprise

Hewlett Packard Enterprise Company (NYSE:HPE) is a global technology company that provides information technology products, services and solutions for businesses and other organizations. Its offerings are designed to support data centers, cloud computing, artificial intelligence, networking and the management of distributed IT environments.

HPE’s portfolio includes enterprise servers, data storage systems, networking equipment, high-performance computing and software. Through its HPE GreenLake platform, the company also delivers cloud and as-a-service solutions that allow customers to access computing, storage, data protection and other IT capabilities through a flexible consumption model.