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

Hewlett Packard Enterprise Company (NYSE:HPE) shares dropped 2.3% during mid-day trading on Tuesday. The company traded as low as $67.05 and last traded at $68.7160. 24,000,838 shares were traded during trading, an increase of 13% from the average daily volume of 21,272,793 shares. The stock had previously closed at $70.33.

More Hewlett Packard Enterprise News

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

• Positive Sentiment: HPE’s partnership with NVIDIA (NVDA) is strengthening its enterprise AI offerings and could help the company compete more effectively with Super Micro Computer and Dell in AI infrastructure. The opportunity supports longer-term growth in high-demand AI, networking and cloud markets. HPE Partners With NVDA: Can it Help Challenge SMCI & DELL?
• Positive Sentiment: Recent operating momentum remains constructive: HPE raised its networking revenue growth outlook, while its latest reported quarter exceeded analyst expectations for both earnings and revenue. These trends indicate continued demand for the company’s infrastructure portfolio. How Evercore’s Valuation-Driven Downgrade At Hewlett Packard Enterprise Has Changed Its Investment Story
• Neutral Sentiment: HPE’s technology was highlighted in coverage of the Ryder Cup as an example of autonomous enterprise operations. The exposure may reinforce the company’s digital-transformation credentials, but the event is unlikely to materially affect near-term earnings. HPE & Ryder Cup: Driving Autonomous Enterprise Operations
• Negative Sentiment: Evercore ISI downgraded HPE from Outperform to In-Line and maintained a $65 price target, citing stretched valuation after the rally. Analyst Amit Daryanani noted that HPE was trading at roughly 13 times fiscal 2027 earnings versus an approximately eight-times five-year average, leaving less room for further multiple expansion despite improving fundamentals. Why Hewlett Packard Enterprise Shares Are Trading Lower Today

Analysts Set New Price Targets

HPE has been the topic of several recent research reports. JPMorgan Chase & Co. upped their price objective on shares of Hewlett Packard Enterprise from $68.00 to $70.00 in a report on Tuesday, August 25th. Weiss Ratings upgraded shares of Hewlett Packard Enterprise from a “buy (b-)” rating to a “buy (b)” rating in a research report on Friday, September 4th. Wells Fargo & Company upped their price target on shares of Hewlett Packard Enterprise from $54.00 to $63.00 and gave the company an “equal weight” rating in a report on Thursday, October 1st. Wall Street Zen raised shares of Hewlett Packard Enterprise from a “buy” rating to a “strong-buy” rating in a report on Sunday, August 30th. Finally, Loop Capital cut their price target on 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. Two analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $65.78.

Hewlett Packard Enterprise Price Performance

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 fifty day simple moving average of $58.65 and a 200-day simple moving average of $45.45. The company has a market capitalization of $91.22 billion, a price-to-earnings ratio of 35.79, a P/E/G ratio of 0.65 and a beta of 1.39.

Hewlett Packard Enterprise (NYSE:HPE) last issued its quarterly earnings data on Wednesday, September 2nd. The technology company reported $1.11 EPS for the quarter, topping analysts’ consensus estimates of $0.93 by $0.18. The business had revenue of $12.21 billion for 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%. The business’s revenue was up 33.7% on a year-over-year basis. During the same quarter last year, the company 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, equities research analysts anticipate that Hewlett Packard Enterprise Company will post 3.34 EPS for the current year.

Hewlett Packard Enterprise Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 16th. Shareholders of record on Thursday, September 17th will be issued a $0.1425 dividend. The ex-dividend date of this dividend is Thursday, September 17th. This represents a $0.57 dividend on an annualized basis and a yield of 0.8%. Hewlett Packard Enterprise’s payout ratio is presently 29.69%.

Insiders Place Their Bets

In other news, CEO Antonio F. Neri sold 250,000 shares of the firm’s stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $60.44, for a total transaction of $15,110,000.00. Following the sale, the chief executive officer directly owned 1,432,393 shares in the company, valued at $86,573,832.92. This trade represents a 14.86% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Gary Reiner sold 17,000 shares of Hewlett Packard Enterprise stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $56.91, for a total value of $967,470.00. Following the completion of the transaction, the director owned 65,072 shares of the company’s stock, valued at approximately $3,703,247.52. This represents a 20.71% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 551,456 shares of company stock worth $35,271,258. Company insiders own 0.44% of the company’s stock.

Institutional Trading of Hewlett Packard Enterprise

A number of institutional investors and hedge funds have recently made changes to their positions in HPE. Irenic Capital Management LP acquired a new stake in Hewlett Packard Enterprise in the 1st quarter valued at $18,691,000. Farther Finance Advisors LLC raised its position in Hewlett Packard Enterprise by 45.7% during the third quarter. Farther Finance Advisors LLC now owns 69,745 shares of the technology company’s stock worth $4,456,000 after acquiring an additional 21,890 shares during the period. Assenagon Asset Management S.A. lifted its holdings in Hewlett Packard Enterprise by 387.9% during the second quarter. Assenagon Asset Management S.A. now owns 1,240,000 shares of the technology company’s stock valued at $55,936,000 after purchasing an additional 985,829 shares in the last quarter. Eastern Bank lifted its holdings in Hewlett Packard Enterprise by 206.4% during the third quarter. Eastern Bank now owns 28,994 shares of the technology company’s stock valued at $1,852,000 after purchasing an additional 19,532 shares in the last quarter. Finally, Sacks & Associates LLC acquired a new stake in shares of Hewlett Packard Enterprise in the third quarter valued at about $1,098,000. 80.78% of the stock is currently owned by hedge funds and other 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.