Hewlett Packard Enterprise (NYSE:HPE) Trading Up 9.2% – Time to Buy?

Shares of Hewlett Packard Enterprise Company (NYSE:HPE) shot up 9.2% during trading on Thursday . The stock traded as high as $61.84 and last traded at $61.8860. 4,670,580 shares traded hands during mid-day trading, a decline of 78% from the average session volume of 21,315,863 shares. The stock had previously closed at $56.68.

Key Stories Impacting Hewlett Packard Enterprise

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

• Positive Sentiment: AI server-sector rally: HPE advanced alongside Super Micro Computer and Dell as investors increased exposure to companies supplying servers and other hardware needed for expanding AI deployments. The broader sector move is the most immediate driver of HPE’s strength. AI Server Stocks Rally
• Positive Sentiment: AI infrastructure opportunity: Recent commentary points to HPE’s potential gains from new AI infrastructure wins, agentic AI adoption and longer-term connections between AI and quantum computing. HPE’s efforts to manage memory constraints through supplier coordination and better forecasting could also support its ability to fulfill demand. HPE AI Infrastructure Wins
• Neutral Sentiment: Performance remains ahead of much of technology: HPE’s strong year-to-date performance is drawing comparisons with the broader computer and technology sector. The relative strength supports investor interest, but also raises the bar for future results. HPE Versus Technology Stocks
• Negative Sentiment: Valuation and insider-selling concerns: Evercore downgraded HPE to “In Line,” citing a less attractive risk-reward balance after the stock’s sharp rally. Separately, CEO Antonio Neri sold 250,000 shares for about $15.1 million under a pre-arranged Rule 10b5-1 plan, while Director Gary Reiner sold 17,000 shares for roughly $967,000. Although the planned CEO sale is not necessarily a signal about business prospects, the transactions may temper bullish sentiment. HPE Rating Lowered to In-Line

Wall Street Analysts Forecast Growth

HPE has been the subject of several recent research reports. Zacks Research raised shares of Hewlett Packard Enterprise from a “hold” rating to a “strong-buy” rating in a report on Friday, September 4th. Wells Fargo & Company dropped their price target on shares of Hewlett Packard Enterprise from $67.00 to $54.00 and set an “equal weight” rating on the stock in a research note on Thursday, September 3rd. Evercore downgraded shares of Hewlett Packard Enterprise from an “outperform” rating to an “in-line” rating and set a $65.00 price target for the company. in a research report on Monday. Bank of America increased their target price on Hewlett Packard Enterprise from $80.00 to $82.00 and gave the company a “buy” rating in a report on Monday, August 31st. Finally, Wall Street Zen raised Hewlett Packard Enterprise from a “buy” rating to a “strong-buy” rating in a research note on Sunday, August 30th. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $69.18.

Hewlett Packard Enterprise Price Performance

The stock has a market cap of $81.58 billion, a PE ratio of 32.01, a price-to-earnings-growth ratio of 0.50 and a beta of 1.43. The stock’s fifty day moving average is $52.05 and its 200-day moving average is $39.89. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.11 and a quick ratio of 0.72.

Hewlett Packard Enterprise (NYSE:HPE) last issued its earnings results on Wednesday, September 2nd. The technology company reported $1.11 EPS 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 15.50%. The company had revenue of $12.21 billion for the quarter, compared to the consensus estimate of $11.97 billion. During the same period in the previous year, the firm earned $0.44 earnings per share. Hewlett Packard Enterprise’s quarterly 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. As a group, equities analysts anticipate that Hewlett Packard Enterprise Company will post 3.34 EPS for the current year.

Hewlett Packard Enterprise Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 16th. Investors of record on Thursday, September 17th will be given a $0.1425 dividend. This represents a $0.57 annualized dividend and a yield of 0.9%. The ex-dividend date is Thursday, September 17th. Hewlett Packard Enterprise’s dividend payout ratio is presently 29.69%.

Insiders Place Their Bets

In other news, CEO Antonio F. Neri sold 250,000 shares of the stock in a transaction on Friday, September 11th. The stock was sold at an average price of $60.44, for a total transaction of $15,110,000.00. Following the completion of the transaction, the chief executive officer directly owned 1,432,393 shares in the company, valued at approximately $86,573,832.92. This represents a 14.86% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Kirt P. Karros sold 18,785 shares of the business’s stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $48.50, for a total transaction of $911,072.50. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 285,785 shares of company stock valued at $16,988,542 over the last quarter. 0.44% of the stock is owned by insiders.

Institutional Investors Weigh In On Hewlett Packard Enterprise

A number of institutional investors and hedge funds have recently made changes to their positions in HPE. Tidal Investments LLC boosted its position in shares of Hewlett Packard Enterprise by 552.7% during the 2nd quarter. Tidal Investments LLC now owns 800,103 shares of the technology company’s stock worth $36,093,000 after purchasing an additional 677,528 shares during the period. BlueCrest Capital Management Ltd raised its position in Hewlett Packard Enterprise by 105.8% in the second quarter. BlueCrest Capital Management Ltd now owns 201,015 shares of the technology company’s stock valued at $9,068,000 after purchasing an additional 103,323 shares during the period. Engineers Gate Manager LP purchased a new position in shares of Hewlett Packard Enterprise during the second quarter worth $13,408,000. SVB Wealth LLC acquired a new stake in shares of Hewlett Packard Enterprise in the second quarter valued at $237,000. Finally, Insight Wealth Partners LLC acquired a new stake in shares of Hewlett Packard Enterprise in the second quarter valued at $299,000. 80.78% of the stock is owned by hedge funds and other institutional investors.

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.