Hewlett Packard Enterprise (NYSE:HPE) Stock Price Down 7.2% – Here’s Why

Hewlett Packard Enterprise Company (NYSE:HPE) was down 7.2% during trading on Monday. The company traded as low as $50.83 and last traded at $51.1120. 16,202,049 shares were traded during trading, a decline of 23% from the average session volume of 21,011,434 shares. The stock had previously closed at $55.09.

More Hewlett Packard Enterprise News

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

• Positive Sentiment: Zacks included HPE on its Strong Buy, value, momentum and income-stock lists. Separate coverage also said the company has factors that could support another earnings beat. New Strong Buy Stocks for November 3rd Will HPE Beat Estimates Again?
• Positive Sentiment: Recent investor commentary points to AI networking as a potential growth driver that could reshape HPE’s earnings story. CEO commentary that HPE has “zero exposure” to AI’s financing web may also help allay concerns about financing risks in the sector. Networking Is Changing The Earnings Story HPE CEO on AI financing exposure
• Negative Sentiment: The clearest near-term headwind was a broad retreat in AI infrastructure stocks. Reports cited worries about server makers’ margins and voter opposition to data-center projects; HPE fell alongside Dell and Super Micro, suggesting sector sentiment—not company-specific news—was weighing on shares. AI server stocks pressured by margin worries and data-center backlash

Wall Street Analyst Weigh In

A number of research firms have weighed in on HPE. Daiwa Securities Group raised shares of Hewlett Packard Enterprise from a “neutral” rating to an “outperform” rating and upped their price objective for the company from $65.00 to $75.00 in a research report on Friday, October 2nd. Bank of America lifted their target price on Hewlett Packard Enterprise from $80.00 to $82.00 and gave the stock a “buy” rating in a research report on Monday, August 31st. Wall Street Zen upgraded Hewlett Packard Enterprise from a “buy” rating to a “strong-buy” rating in a research note on Sunday, August 30th. Evercore increased their price target on Hewlett Packard Enterprise from $65.00 to $67.00 and gave the company an “outperform” rating in a report on Thursday, October 1st. Finally, Piper Sandler raised their price objective on Hewlett Packard Enterprise from $57.00 to $70.00 and gave the company a “neutral” rating in a research note on Thursday, October 1st. Two investment analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and eight have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $65.44.

Hewlett Packard Enterprise Stock Down 5.8%

The company has a debt-to-equity ratio of 0.65, a current ratio of 1.11 and a quick ratio of 0.72. The stock has a market capitalization of $66.40 billion, a price-to-earnings ratio of 19.17, a PEG ratio of 0.34 and a beta of 1.46. The firm’s fifty day moving average is $59.61 and its 200-day moving average is $41.15.

Hewlett Packard Enterprise (NYSE:HPE) last announced 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 analyst estimates of $11.97 billion. Hewlett Packard Enterprise had a net margin of 6.60% and a return on equity of 15.50%. The firm’s revenue for the quarter was up 33.7% compared to the same quarter last year. During the same period last year, the business earned $0.44 EPS. 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. On average, sell-side analysts predict that Hewlett Packard Enterprise Company will post 3.34 earnings per share for the current year.

Hewlett Packard Enterprise Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, October 16th. Investors of record on Thursday, September 17th were issued a $0.1425 dividend. This represents a $0.57 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend was Thursday, September 17th. Hewlett Packard Enterprise’s payout ratio is currently 29.69%.

Insider Buying and Selling at Hewlett Packard Enterprise

In other Hewlett Packard Enterprise news, Director Gary M. Reiner sold 17,000 shares of the company’s 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 owned 65,072 shares in the company, valued at $3,703,247.52. This represents a 20.71% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, EVP Rami Rahim sold 34,443 shares of the stock in a transaction that occurred on Wednesday, October 21st. The stock was sold at an average price of $58.04, for a total value of $1,999,071.72. Following the transaction, the executive vice president directly owned 840,690 shares in the company, valued at approximately $48,793,647.60. This represents a 3.94% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 585,899 shares of company stock worth $37,270,329 over the last quarter. 0.44% of the stock is owned by corporate insiders.

Institutional Trading of Hewlett Packard Enterprise

Several institutional investors have recently added to or reduced their stakes in the business. Foster Group Inc. raised its stake in Hewlett Packard Enterprise by 2.8% during the third quarter. Foster Group Inc. now owns 5,341 shares of the technology company’s stock worth $341,000 after acquiring an additional 146 shares during the period. Financial Insights Inc. lifted its holdings in Hewlett Packard Enterprise by 3.3% in the third quarter. Financial Insights Inc. now owns 5,429 shares of the technology company’s stock worth $347,000 after acquiring an additional 175 shares during the last quarter. Oakworth Capital Inc. lifted its holdings in Hewlett Packard Enterprise by 2.3% in the third quarter. Oakworth Capital Inc. now owns 8,159 shares of the technology company’s stock worth $521,000 after acquiring an additional 181 shares during the last quarter. Joseph Group Capital Management boosted its stake in Hewlett Packard Enterprise by 47.0% in the third quarter. Joseph Group Capital Management now owns 635 shares of the technology company’s stock valued at $41,000 after acquiring an additional 203 shares during the period. Finally, Baird Financial Group Inc. boosted 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 valued at $709,000 after acquiring an additional 212 shares during the period. Institutional investors own 80.78% of the company’s stock.

Hewlett Packard Enterprise Company Profile

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

HPE’s portfolio includes enterprise servers and compute systems, data storage, networking products, high-performance computing and artificial intelligence infrastructure.