Key Points
- Insider sale: EVP Rami Rahim sold 34,456 HPE shares for approximately $2.1 million under a pre-arranged Rule 10b5-1 plan. He continues to own about 875,000 shares directly.
- Strong financial performance: HPE reported quarterly EPS of $1.11, beating estimates by $0.18, while revenue rose 33.7% year over year to $12.21 billion.
- AI-driven outlook: HPE secured a $1.2 billion AMD Helios order from Vultr and raised its long-term networking outlook, prompting several analysts to increase their price targets despite mixed ratings.
Hewlett Packard Enterprise Company (NYSE:HPE - Get Free Report) EVP Rami Rahim sold 34,456 shares of the firm's stock in a transaction that occurred on Tuesday, September 29th. The shares were sold at an average price of $61.42, for a total transaction of $2,116,287.52. Following the transaction, the executive vice president directly owned 875,133 shares of the company's stock, valued at $53,750,668.86. This represents a 3.79% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Hewlett Packard Enterprise Stock Performance
Shares of HPE opened at $64.60 on Friday. 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 stock has a market cap of $85.75 billion, a P/E ratio of 33.65, a P/E/G ratio of 0.57 and a beta of 1.39. The business's 50 day moving average price is $55.38 and its 200-day moving average price is $43.05. Hewlett Packard Enterprise Company has a 52 week low of $19.84 and a 52 week high of $67.10.
Hewlett Packard Enterprise (NYSE:HPE - Get Free Report) last released its earnings results on Wednesday, September 2nd. The technology company reported $1.11 EPS for the quarter, topping analysts' consensus estimates of $0.93 by $0.18. Hewlett Packard Enterprise had a return on equity of 15.50% and a net margin of 6.60%.The firm had revenue of $12.21 billion for the quarter, compared to analysts' expectations of $11.97 billion. During the same period in the prior year, the firm posted $0.44 earnings per share. The company's quarterly revenue was up 33.7% on a year-over-year basis. 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. Equities research analysts anticipate that Hewlett Packard Enterprise Company will post 3.33 earnings per share for the current fiscal year.
Hewlett Packard Enterprise Announces Dividend
The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 16th. Investors of record on Thursday, September 17th will be given a dividend of $0.1425 per share. This represents a $0.57 annualized dividend and a yield of 0.9%. The ex-dividend date of this dividend is Thursday, September 17th. Hewlett Packard Enterprise's dividend payout ratio is 29.69%.
Analyst Upgrades and Downgrades
Several brokerages have recently issued reports on HPE. Weiss Ratings upgraded shares of Hewlett Packard Enterprise from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, September 4th. Evercore downgraded shares of Hewlett Packard Enterprise from an "outperform" rating to an "in-line" rating and set a $65.00 price target for the company. in a research report on Monday, September 14th. Piper Sandler restated a "neutral" rating and issued a $57.00 price objective (down from $63.00) on shares of Hewlett Packard Enterprise in a report on Thursday, September 3rd. Bank of America upped their price objective on Hewlett Packard Enterprise from $80.00 to $82.00 and gave the company a "buy" rating in a research report on Monday, August 31st. Finally, Wall Street Zen upgraded Hewlett Packard Enterprise from a "buy" rating to a "strong-buy" rating in a research note on Sunday, August 30th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and six have issued a Hold rating to the company. According to MarketBeat, Hewlett Packard Enterprise presently has an average rating of "Moderate Buy" and a consensus target price of $71.88.
Read Our Latest Stock Report on HPE
Institutional Trading of Hewlett Packard Enterprise
Large investors have recently made changes to their positions in the stock. Capital World Investors bought a new position in Hewlett Packard Enterprise during the fourth quarter valued at approximately $901,751,000. Elliott Investment Management L.P. grew its position in Hewlett Packard Enterprise by 47.2% in the 1st quarter. Elliott Investment Management L.P. now owns 27,421,735 shares of the technology company's stock worth $652,912,000 after purchasing an additional 8,790,757 shares during the period. Barrow Hanley Mewhinney & Strauss LLC purchased a new stake in Hewlett Packard Enterprise during the 2nd quarter valued at $1,027,139,000. Primecap Management Co. CA purchased a new stake in Hewlett Packard Enterprise during the 2nd quarter valued at $773,225,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in shares of Hewlett Packard Enterprise by 6.1% during the 2nd 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 valued at $590,435,000 after buying an additional 756,972 shares during the period. 80.78% of the stock is currently owned by institutional investors.
Trending Headlines about Hewlett Packard Enterprise
Here are the key news stories impacting Hewlett Packard Enterprise this week:
- Positive Sentiment: HPE secured a $1.2 billion order from cloud infrastructure provider Vultr for AMD Helios AI Rack systems to be deployed at U.S. data centers. The order is HPE’s first for AMD’s new rack-scale AI platform and supports its positioning as a supplier of high-performance AI infrastructure. HPE Secures Its First AMD Helios Order in $1.2 Billion Deal With Vultr
- Positive Sentiment: The company raised its long-term networking revenue outlook at its investor event, citing AI-driven demand across data-center networking, routing, campus and branch, and security markets. Management also said AI demand continues to exceed supply, strengthening the growth narrative. HPE boosts networking growth outlook and gets AI order
- Positive Sentiment: Analysts raised targets following the announcements: Citi to $92 with a buy rating, Barclays to $83 with an overweight rating, Truist to $75, Morgan Stanley to $72 with an overweight rating, and UBS to $66. These revisions reinforce the view that HPE’s AI and networking opportunity may support additional upside.
- Neutral Sentiment: Analyst opinion is divided after HPE’s sharp advance. Wells Fargo raised its target to $63 but maintained equal weight, while UBS kept a neutral rating at $66. Commentary also highlights that HPE trades at a lower forward multiple than many AI infrastructure peers, but some investors believe the recent rally has already priced in substantial growth. HPE Networking Outlook Gets Boost
- Neutral Sentiment: EVP Rami Rahim sold 34,456 shares for approximately $2.1 million under a pre-arranged Rule 10b5-1 plan. The sale reduced his position by 3.79%, but he still directly owns about 875,000 shares, limiting the transaction’s significance as a bearish signal. SEC insider trading filing
About Hewlett Packard Enterprise
(
Get Free Report)
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.
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