Hewlett Packard Enterprise (NYSE:HPE) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Wednesday.

According to Zacks, “Hewlett Packard has underperformed the industry to which it belongs to in a year’s time. Estimates have remained stable off late. The company’s disappointing guidance for Q1 undermines its near-term prospects. We remain slightly cautious about the company’s near-term prospects due to the three main challenges it is currently facing – competitive pricing, heightened commodities pricing pressure and some dilution from M&A. These headwinds are expected to thwart its overall performance in the near term. Furthermore, in our opinion, the company’s contrarian strategy may be in the right direction, but the turnaround is still far behind as we haven’t seen any materialistic improvement in its recently reported financial results. We also consider that the company is still struggling to determine its true business focus.”

A number of other brokerages have also recently weighed in on HPE. Royal Bank of Canada restated a “hold” rating and issued a $15.00 price objective on shares of Hewlett Packard Enterprise in a report on Wednesday, October 11th. Pivotal Research began coverage on shares of Hewlett Packard Enterprise in a report on Tuesday, October 17th. They issued a “hold” rating and a $14.00 price objective on the stock. Citigroup cut shares of Hewlett Packard Enterprise from a “buy” rating to a “neutral” rating and upped their price objective for the stock from $14.80 to $16.00 in a report on Friday, October 13th. Sanford C. Bernstein restated an “outperform” rating and issued a $18.00 price objective on shares of Hewlett Packard Enterprise in a report on Tuesday, October 10th. Finally, Oppenheimer restated a “buy” rating and issued a $17.00 price objective on shares of Hewlett Packard Enterprise in a report on Thursday, October 19th. Three equities research analysts have rated the stock with a sell rating, twenty have given a hold rating and eleven have given a buy rating to the stock. The stock presently has an average rating of “Hold” and an average price target of $16.04.

Shares of Hewlett Packard Enterprise (NYSE HPE) traded up $0.03 on Wednesday, reaching $14.85. 14,481,200 shares of the company’s stock were exchanged, compared to its average volume of 11,078,150. The stock has a market capitalization of $23,920.00 and a PE ratio of 59.40. The company has a current ratio of 1.13, a quick ratio of 1.01 and a debt-to-equity ratio of 0.43. Hewlett Packard Enterprise has a twelve month low of $12.81 and a twelve month high of $24.88.

Hewlett Packard Enterprise (NYSE:HPE) last announced its quarterly earnings data on Tuesday, November 21st. The technology company reported $0.31 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.28 by $0.03. The business had revenue of $7.66 billion for the quarter, compared to analysts’ expectations of $7.78 billion. Hewlett Packard Enterprise had a net margin of 0.93% and a return on equity of 7.70%. The business’s revenue was up 4.6% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.61 earnings per share. sell-side analysts forecast that Hewlett Packard Enterprise will post 1.18 EPS for the current fiscal year.

Hewlett Packard Enterprise announced that its Board of Directors has initiated a stock buyback program on Wednesday, October 18th that authorizes the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization authorizes the technology company to buy shares of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s management believes its stock is undervalued.

In related news, CEO Margaret C. Whitman sold 235,050 shares of the firm’s stock in a transaction that occurred on Wednesday, November 1st. The shares were sold at an average price of $13.81, for a total value of $3,246,040.50. Following the sale, the chief executive officer now owns 980,346 shares in the company, valued at $13,538,578.26. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Henry Gomez sold 55,200 shares of the firm’s stock in a transaction that occurred on Thursday, November 2nd. The stock was sold at an average price of $13.53, for a total transaction of $746,856.00. Following the completion of the sale, the executive vice president now owns 45,004 shares in the company, valued at approximately $608,904.12. The disclosure for this sale can be found here. Insiders sold 743,330 shares of company stock worth $10,504,296 in the last 90 days. 0.87% of the stock is currently owned by corporate insiders.

Hedge funds have recently modified their holdings of the stock. YorkBridge Wealth Partners LLC raised its position in Hewlett Packard Enterprise by 3.2% in the second quarter. YorkBridge Wealth Partners LLC now owns 6,457 shares of the technology company’s stock worth $108,000 after acquiring an additional 200 shares during the period. Westside Investment Management Inc. raised its position in Hewlett Packard Enterprise by 1.5% in the second quarter. Westside Investment Management Inc. now owns 17,432 shares of the technology company’s stock worth $292,000 after acquiring an additional 250 shares during the period. Meridian Investment Counsel Inc. raised its position in Hewlett Packard Enterprise by 1.5% in the second quarter. Meridian Investment Counsel Inc. now owns 23,557 shares of the technology company’s stock worth $391,000 after acquiring an additional 350 shares during the period. Eaton Vance Management raised its position in Hewlett Packard Enterprise by 0.5% in the second quarter. Eaton Vance Management now owns 119,482 shares of the technology company’s stock worth $1,982,000 after acquiring an additional 586 shares during the period. Finally, WFG Advisors LP raised its position in Hewlett Packard Enterprise by 15.3% in the second quarter. WFG Advisors LP now owns 6,043 shares of the technology company’s stock worth $100,000 after acquiring an additional 801 shares during the period. Institutional investors own 83.43% of the company’s stock.

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Hewlett Packard Enterprise Company Profile

Hewlett Packard Enterprise Company is a provider of technology solutions. The Company’s segments include: Enterprise Group, Software, Financial Services and Corporate Investments. The Enterprise Group segment provides its customers with the technology infrastructure they need to optimize traditional information technology (IT).

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