HP (HPQ) Upgraded to “Hold” at Zacks Investment Research
According to Zacks, “HP’s efforts to turnaround the business have been commendable. The company is focusing on product innovation & differentiation, pricing, and marketing and sales activities to trigger demand for its PC and Printing products in the market, which is currently witnessing a slowdown. The company projects CPU shortages to show improvements during the second half as well as the cost from the overall basket of Components and Logistics is anticipated to improve. We note that rising macro uncertainties and price sensitivity among customers are overhangs on the company’s high-margin Printing business. Change in customer behavior with more customers buying items online, is negatively impacting HP’s Supplies share. Adverse currency volatility is another headwind to the company. Shares underperformed the industry in the past year.”
Several other equities analysts also recently issued reports on HPQ. Wolfe Research initiated coverage on HP in a research report on Tuesday, December 11th. They issued an outperform rating on the stock. Standpoint Research began coverage on HP in a research report on Wednesday, December 26th. They issued a buy rating and a $19.38 target price on the stock. Royal Bank of Canada reaffirmed a buy rating and issued a $26.00 price target on shares of HP in a report on Wednesday, January 2nd. BMO Capital Markets reaffirmed a hold rating and issued a $22.00 price target on shares of HP in a report on Wednesday, February 27th. Finally, Bank of America lowered shares of HP from a buy rating to an underperform rating and set a $19.00 price target on the stock. in a report on Thursday, February 28th. Two analysts have rated the stock with a sell rating, seven have assigned a hold rating and nine have assigned a buy rating to the stock. HP currently has a consensus rating of Hold and a consensus price target of $26.03.
HP (NYSE:HPQ) last released its earnings results on Wednesday, February 27th. The computer maker reported $0.52 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.52. HP had a negative return on equity of 216.97% and a net margin of 7.15%. The firm had revenue of $14.71 billion for the quarter, compared to the consensus estimate of $14.81 billion. During the same period in the prior year, the firm earned $0.48 EPS. The firm’s revenue was up 1.3% on a year-over-year basis. As a group, sell-side analysts predict that HP will post 2.14 earnings per share for the current year.
The firm also recently declared a quarterly dividend, which was paid on Wednesday, April 3rd. Shareholders of record on Wednesday, March 13th were issued a $0.1602 dividend. This represents a $0.64 annualized dividend and a yield of 3.19%. The ex-dividend date of this dividend was Tuesday, March 12th. HP’s payout ratio is 31.68%.
In other news, CEO Dion J. Weisler sold 36,799 shares of the stock in a transaction dated Monday, March 18th. The shares were sold at an average price of $20.00, for a total transaction of $735,980.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 0.25% of the company’s stock.
Several hedge funds have recently bought and sold shares of HPQ. Bank of New York Mellon Corp boosted its stake in shares of HP by 6.2% during the 3rd quarter. Bank of New York Mellon Corp now owns 19,076,825 shares of the computer maker’s stock worth $491,611,000 after acquiring an additional 1,120,811 shares in the last quarter. Franklin Resources Inc. lifted its stake in HP by 86.8% in the 3rd quarter. Franklin Resources Inc. now owns 367,166 shares of the computer maker’s stock valued at $9,461,000 after buying an additional 170,560 shares in the last quarter. Fifth Third Bancorp lifted its stake in HP by 204.6% in the 3rd quarter. Fifth Third Bancorp now owns 28,759 shares of the computer maker’s stock valued at $741,000 after buying an additional 19,318 shares in the last quarter. LPL Financial LLC lifted its stake in HP by 3.9% in the 3rd quarter. LPL Financial LLC now owns 126,997 shares of the computer maker’s stock valued at $3,273,000 after buying an additional 4,733 shares in the last quarter. Finally, Capital Research Global Investors purchased a new position in HP in the 3rd quarter valued at about $22,738,000. 81.03% of the stock is currently owned by institutional investors and hedge funds.
HP Company Profile
HP Inc provides products, technologies, software, solutions, and services to individual consumers, small- and medium-sized businesses, and large enterprises, including customers in the government, health, and education sectors worldwide. It operates through Personal Systems and Printing segments. The Personal Systems segment offers commercial personal computers (PCs), consumer PCs, workstations, thin clients, commercial tablets and mobility devices, retail point-of-sale systems, displays and other related accessories, software, support, and services for the commercial and consumer markets.
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