Hewlett Packard Enterprise (NYSE:HPE) Stock Price Down 5.8% – Here’s What Happened

Hewlett Packard Enterprise Company (NYSE:HPE)’s stock price fell 5.8% during trading on Wednesday. The stock traded as low as $49.16 and last traded at $50.0240. Approximately 20,996,141 shares traded hands during mid-day trading, an increase of 0% from the average session volume of 20,957,473 shares. The stock had previously closed at $53.10.

Trending Headlines about Hewlett Packard Enterprise

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

• Positive Sentiment: HPE’s networking rollout connects EdgeConnect with Mist and Aruba Central, bringing security, wired and wireless management into a unified, increasingly automated platform. This could strengthen its networking offering, though the article does not report financial results from the rollout. HPE networking rollout and valuation
• Positive Sentiment: HPE shares participated in a partial recovery among AI-server stocks after the group’s post-midterm sell-off. The rebound suggests some buyers returned to the sector, although trading across the group remains volatile. AI-server stocks rebound
• Neutral Sentiment: Valuation articles argue HPE may be substantially undervalued following its pullback and raised outlook. These are analyst-style assessments, not new company results or guarantees of a recovery. HPE valuation commentary
• Negative Sentiment: Super Micro Computer’s collaboration with NVIDIA adds to competition in AI servers, a key growth market for HPE. Its new GPU, cooling and rack-scale offerings could challenge HPE and other rivals. Super Micro and NVIDIA collaboration

Analyst Ratings Changes

HPE has been the subject of several recent analyst reports. Barclays cut Hewlett Packard Enterprise from an “overweight” rating to an “equal weight” rating and decreased their target price for the stock from $83.00 to $77.00 in a research report on Wednesday, October 14th. Weiss Ratings raised shares of Hewlett Packard Enterprise from a “buy (b-)” rating to a “buy (b)” rating in a report on Friday, September 4th. Wells Fargo & Company increased their price target on Hewlett Packard Enterprise from $54.00 to $63.00 and gave the company an “equal weight” rating in a research note on Thursday, October 1st. Morgan Stanley lifted their price objective on shares of Hewlett Packard Enterprise from $67.00 to $72.00 and gave the company an “overweight” rating in a report on Thursday, October 1st. Finally, Argus reiterated a “buy” rating and issued a $70.00 price target on shares of Hewlett Packard Enterprise in a research note on Friday, September 4th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and eight have given a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $65.44.

Hewlett Packard Enterprise Price Performance

The firm has a market cap of $59.38 billion, a P/E ratio of 23.30, a P/E/G ratio of 0.32 and a beta of 1.46. The company has a quick ratio of 0.72, a current ratio of 1.11 and a debt-to-equity ratio of 0.65. The business’s 50 day moving average is $59.20 and its two-hundred day moving average is $41.39.

Hewlett Packard Enterprise (NYSE:HPE) last issued its quarterly earnings results on Wednesday, September 2nd. The technology company reported $1.11 earnings per share for the quarter, topping analysts’ consensus estimates of $0.93 by $0.18. The firm had revenue of $12.21 billion during the quarter, compared to the consensus estimate of $11.97 billion. Hewlett Packard Enterprise had a return on equity of 15.50% and a net margin of 6.60%. The business’s revenue was up 33.7% compared to the same quarter last year. During the same period last year, the business posted $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. As a group, analysts anticipate 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 announced a quarterly dividend, which was paid on Friday, October 16th. Investors of record on Thursday, September 17th were given a $0.1425 dividend. This represents a $0.57 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date of this dividend was Thursday, September 17th. Hewlett Packard Enterprise’s payout ratio is presently 29.69%.

Insider Buying and Selling

In other news, CEO Antonio F. Neri sold 250,000 shares of the business’s stock in a transaction that occurred on 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 completion of the sale, the chief executive officer owned 1,432,393 shares in the company, valued at $86,573,832.92. The trade was a 14.86% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Gary Reiner sold 17,000 shares of the company’s stock in a transaction 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 transaction, the director owned 65,072 shares in the company, valued at approximately $3,703,247.52. The trade was a 20.71% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 585,899 shares of company stock valued at $37,270,329. 0.44% of the stock is owned by company insiders.

Institutional Trading of Hewlett Packard Enterprise

Institutional investors have recently made changes to their positions in the company. Barrow Hanley Mewhinney & Strauss LLC purchased a new stake in Hewlett Packard Enterprise in the second quarter worth $1,027,139,000. Primecap Management Co. CA purchased a new stake in Hewlett Packard Enterprise in the 2nd quarter worth approximately $773,225,000. Elliott Investment Management L.P. lifted its position in Hewlett Packard Enterprise by 47.2% during the first quarter. Elliott Investment Management L.P. now owns 27,421,735 shares of the technology company’s stock valued at $652,912,000 after buying an additional 8,790,757 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in shares of Hewlett Packard Enterprise by 6.1% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 13,088,774 shares of the technology company’s stock worth $590,435,000 after acquiring an additional 756,972 shares during the last quarter. Finally, Legal & General Group Plc bought a new stake in shares of Hewlett Packard Enterprise in the second quarter worth approximately $512,721,000. Institutional investors own 80.78% of the company’s stock.

About Hewlett Packard Enterprise

Hewlett Packard Enterprise (HPE) is a global information technology company that provides products and services for businesses, governments and other organizations. Its offerings span servers and computing systems, data storage, networking, hybrid cloud, artificial intelligence and edge computing.

HPE sells systems such as HPE ProLiant servers and HPE Alletra storage, along with networking products through HPE Aruba Networking. Its HPE GreenLake platform provides cloud and IT services through a flexible, consumption-based model.