Hewlett Packard Enterprise (NYSE:HPE) Stock Falls 2% – Here’s Why

Hewlett Packard Enterprise Company (NYSE:HPE) was down 2% during trading on Tuesday. The company traded as low as $60.68 and last traded at $61.3530. Approximately 12,309,621 shares changed hands during trading, a decline of 42% from the average daily volume of 21,285,527 shares. The stock had previously closed at $62.63.

More Hewlett Packard Enterprise News

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

• Positive Sentiment: $1.2 billion Vultr order: HPE secured its first order for AMD Helios AI Rack systems from cloud provider Vultr. The systems will be deployed across Vultr’s U.S. data centers, providing a significant customer win for HPE’s AI servers, networking hardware and related software. HPE Secures Its First AMD Helios Order in $1.2 Billion Deal With Vultr
• Positive Sentiment: Networking outlook raised: At its Networking Investor Day, HPE highlighted stronger long-term growth opportunities in data-center networking, routing, campus and branch networking, and security, with AI demand serving as a key growth driver. HPE boosts networking growth outlook, gets $1.2 billion AI order
• Positive Sentiment: Analyst target increases: Barclays raised its target to $83 from $79 and maintained an overweight rating. Truist lifted its target to $75 from $70 while reaffirming buy, and Morgan Stanley raised its target to $72 from $67 with an overweight rating. These revisions suggest analysts see additional upside from AI infrastructure and networking growth.
• Neutral Sentiment: Mixed analyst view: UBS raised its target to $66 from $59 but kept a neutral rating, while Wells Fargo increased its target to $63 from $54 and maintained equal weight. Their targets indicate that some analysts believe much of HPE’s recent rally and AI optimism is already reflected in the valuation. HPE Networking Outlook Gets Boost as Barclays, Citi and Wells Fargo Raise Price Targets

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on HPE. Raymond James Financial upped their target price on Hewlett Packard Enterprise from $74.00 to $86.00 and gave the stock an “outperform” rating in a research report on Thursday, September 3rd. Truist Financial reiterated a “buy” rating and issued a $75.00 target price (up from $70.00) on shares of Hewlett Packard Enterprise in a research note on Thursday. Piper Sandler reiterated a “neutral” rating and issued a $57.00 target price (down from $63.00) on shares of Hewlett Packard Enterprise in a report on Thursday, September 3rd. Citigroup upped their price target on shares of Hewlett Packard Enterprise from $76.00 to $92.00 and gave the company a “buy” rating in a report on Thursday. Finally, Zacks Research raised Hewlett Packard Enterprise from a “hold” rating to a “strong-buy” rating in a research report on Friday, September 4th. One 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 stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $71.88.

Hewlett Packard Enterprise Stock Performance

The firm’s fifty day moving average price is $55.04 and its 200-day moving average price is $42.75. The company has a market cap of $86.13 billion, a P/E ratio of 33.66, a P/E/G ratio of 0.55 and a beta of 1.43. The company has a current ratio of 1.11, a quick ratio of 0.72 and a debt-to-equity ratio of 0.65.

Hewlett Packard Enterprise (NYSE:HPE) last issued its quarterly earnings results on Wednesday, September 2nd. The technology company reported $1.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.93 by $0.18. Hewlett Packard Enterprise had a return on equity of 15.50% and a net margin of 6.60%.The firm had revenue of $12.21 billion for the quarter, compared to analyst estimates of $11.97 billion. During the same period in the previous year, the company posted $0.44 earnings per share. The company’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, research analysts forecast that Hewlett Packard Enterprise Company will post 3.33 EPS for the current fiscal year.

Hewlett Packard Enterprise Announces Dividend

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

Insider Transactions at Hewlett Packard Enterprise

In other Hewlett Packard Enterprise news, Director Gary Reiner sold 17,000 shares of Hewlett Packard Enterprise stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $56.91, for a total transaction of $967,470.00. Following the sale, the director directly owned 65,072 shares of the company’s stock, valued at approximately $3,703,247.52. The trade was a 20.71% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Antonio F. Neri sold 250,000 shares of the stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $60.44, for a total value of $15,110,000.00. Following the completion of the transaction, the chief executive officer directly owned 1,432,393 shares of the company’s stock, valued at approximately $86,573,832.92. The trade was a 14.86% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.44% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in HPE. Baird Financial Group Inc. lifted its holdings in shares of Hewlett Packard Enterprise by 1.4% in the 2nd quarter. Baird Financial Group Inc. now owns 15,727 shares of the technology company’s stock worth $709,000 after buying an additional 212 shares during the period. Sax Wealth Advisors LLC raised its holdings in shares of Hewlett Packard Enterprise by 2.9% in the second quarter. Sax Wealth Advisors LLC now owns 8,782 shares of the technology company’s stock valued at $396,000 after acquiring an additional 244 shares in the last quarter. MassMutual Private Wealth & Trust FSB lifted its stake in Hewlett Packard Enterprise by 5.2% in the second quarter. MassMutual Private Wealth & Trust FSB now owns 7,180 shares of the technology company’s stock worth $324,000 after acquiring an additional 355 shares during the period. Investment Research Partners LLC lifted its stake in Hewlett Packard Enterprise by 2.0% in the fourth quarter. Investment Research Partners LLC now owns 21,925 shares of the technology company’s stock worth $527,000 after acquiring an additional 423 shares during the period. Finally, D.A. Davidson & CO. grew its holdings in Hewlett Packard Enterprise by 4.5% during the 1st quarter. D.A. Davidson & CO. now owns 9,998 shares of the technology company’s stock worth $238,000 after acquiring an additional 429 shares in the last quarter. 80.78% of the stock is owned by institutional investors.

Hewlett Packard Enterprise Company Profile

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

HPE’s portfolio includes enterprise servers, high-performance computing systems, data storage, networking equipment, software and technology consulting services. The company also provides hybrid cloud and as-a-service solutions through HPE GreenLake, allowing customers to access and manage computing, storage, data protection and other IT capabilities through a flexible consumption model.