Hewlett Packard Enterprise (NYSE:HPE) Shares Down 2.3% – Should You Sell?

Hewlett Packard Enterprise Company (NYSE:HPE)’s share price was down 2.3% during mid-day trading on Tuesday. The stock traded as low as $67.05 and last traded at $68.7160. Approximately 24,000,838 shares traded hands during trading, an increase of 13% from the average session volume of 21,272,793 shares. The stock had previously closed at $70.33.

Trending Headlines about Hewlett Packard Enterprise

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

• Positive Sentiment: HPE plans to invest $75 million to expand its Chippewa Falls, Wisconsin, operations and add approximately 75 jobs. The expansion supports the company’s data-center and technology infrastructure business, although its direct effect on near-term earnings is likely limited. Hewlett Packard Enterprise to spend $75M to expand, add 75 jobs in Chippewa Falls
• Positive Sentiment: Daiwa upgraded HPE to Outperform, providing a counterpoint to the more cautious analyst actions and signaling that some investors still see upside in the company’s growth and infrastructure strategy. Daiwa upgrades Hewlett Packard Enterprise stock to Outperform
• Neutral Sentiment: Recent coverage highlights HPE’s strong fundamentals, including record quarterly revenue, orders and backlog, with demand spanning traditional servers, AI systems and networking. The company also previously announced a $1.2 billion AI order from Vultr, but investors are now focused on whether that demand will accelerate enough to justify the stock’s elevated valuation. What Changed For HPE Stock, And What Did Not?
• Negative Sentiment: Barclays downgraded HPE from Overweight to Equal Weight and reduced its price target from $83 to $77. The firm cited elevated valuation and a lack of a meaningful AI growth inflection, raising concerns that enterprise IT spending may not meet optimistic expectations. Dell, HPE and NetApp Stocks Slump After Downgrades on Worries About AI Spending
• Negative Sentiment: Evercore also moved HPE to In Line with a $65 price target, adding to the broader analyst caution after the stock’s sharp run-up. Evercore cuts Hewlett Packard Enterprise stock to In Line

Wall Street Analysts Forecast Growth

HPE has been the topic of a number of research analyst reports. Loop Capital cut their target price on shares of Hewlett Packard Enterprise from $75.00 to $65.00 and set a “buy” rating on the stock in a research report on Tuesday, September 8th. Zacks Research upgraded shares of Hewlett Packard Enterprise from a “hold” rating to a “strong-buy” rating in a report on Friday, September 4th. Daiwa Securities Group upgraded Hewlett Packard Enterprise from a “neutral” rating to an “outperform” rating and increased their price target for the company from $65.00 to $75.00 in a research note on Friday, October 2nd. Raymond James Financial raised their price objective on Hewlett Packard Enterprise from $74.00 to $86.00 and gave the company an “outperform” rating in a report on Thursday, September 3rd. Finally, The Goldman Sachs Group upped their target price on Hewlett Packard Enterprise from $75.00 to $80.00 and gave the stock a “buy” rating in a report on Tuesday, October 6th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $65.44.

Hewlett Packard Enterprise Price Performance

The company has a fifty day simple moving average of $59.18 and a 200 day simple moving average of $46.02. The company has a debt-to-equity ratio of 0.65, a quick ratio of 0.72 and a current ratio of 1.11. The stock has a market capitalization of $77.94 billion, a price-to-earnings ratio of 30.56, a P/E/G ratio of 0.61 and a beta of 1.39.

Hewlett Packard Enterprise (NYSE:HPE) last posted its quarterly earnings data on Wednesday, September 2nd. The technology company reported $1.11 earnings per share for the quarter, topping the consensus estimate of $0.93 by $0.18. The company had revenue of $12.21 billion during the quarter, compared to analysts’ expectations of $11.97 billion. Hewlett Packard Enterprise had a net margin of 6.60% and a return on equity of 15.50%. Hewlett Packard Enterprise’s revenue for the quarter was up 33.7% compared to the same quarter last year. During the same period in the prior 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. Equities research analysts forecast that Hewlett Packard Enterprise Company will post 3.34 EPS for the current fiscal year.

Hewlett Packard Enterprise Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 16th. Investors 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 dividend payout ratio is presently 29.69%.

Insider Buying and Selling

In other Hewlett Packard Enterprise news, Director Gary M. 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 value of $967,470.00. Following the completion of the sale, the director directly owned 65,072 shares in the company, valued at approximately $3,703,247.52. The trade was a 20.71% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Antonio Neri sold 250,000 shares of Hewlett Packard Enterprise stock in a transaction that occurred on Monday, October 5th. The stock was sold at an average price of $68.31, for a total value of $17,077,500.00. Following the completion of the sale, the chief executive officer owned 1,182,393 shares of the company’s stock, valued at approximately $80,769,265.83. The trade was a 17.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 551,456 shares of company stock valued at $35,271,258 over the last 90 days. Company insiders own 0.44% of the company’s stock.

Institutional Trading of Hewlett Packard Enterprise

Several hedge funds have recently modified their holdings of HPE. Foster Group Inc. lifted its holdings in Hewlett Packard Enterprise by 2.8% in the 3rd quarter. Foster Group Inc. now owns 5,341 shares of the technology company’s stock worth $341,000 after buying an additional 146 shares during the period. Baird Financial Group Inc. lifted its stake in Hewlett Packard Enterprise by 1.4% in the second quarter. Baird Financial Group Inc. now owns 15,727 shares of the technology company’s stock worth $709,000 after acquiring an additional 212 shares during the period. Sax Wealth Advisors LLC boosted its holdings in 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. Triumph Capital Management increased its position in Hewlett Packard Enterprise by 208.6% during the 3rd quarter. Triumph Capital Management now owns 466 shares of the technology company’s stock valued at $30,000 after purchasing an additional 315 shares during the period. Finally, MassMutual Private Wealth & Trust FSB increased its position in Hewlett Packard Enterprise by 5.2% during the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 7,180 shares of the technology company’s stock valued at $324,000 after purchasing an additional 355 shares during the period. Institutional investors own 80.78% of the company’s stock.

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, 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.