Hewlett Packard Enterprise (NYSE:HPE) Shares Climb 7.5% After Analyst Upgrade

Hewlett Packard Enterprise Company (NYSE:HPE) shot up 7.5% during trading on Friday after Daiwa Securities Group upgraded the stock from a neutral rating to an outperform rating. Daiwa Securities Group now has a $75.00 price target on the stock. Hewlett Packard Enterprise traded as high as $70.29 and last traded at $69.3940. Approximately 28,971,549 shares changed hands during mid-day trading, an increase of 36% from the average daily volume of 21,363,648 shares. The stock had previously closed at $64.58.

A number of other research firms have also issued reports on HPE. Morgan Stanley raised their price target on shares of Hewlett Packard Enterprise from $67.00 to $72.00 and gave the stock an “overweight” rating in a research report on Thursday. Raymond James Financial upped their price objective on shares of Hewlett Packard Enterprise from $74.00 to $86.00 and gave the company an “outperform” rating in a report on Thursday, September 3rd. Zacks Research upgraded shares of Hewlett Packard Enterprise from a “hold” rating to a “strong-buy” rating in a research note on Friday, September 4th. Wells Fargo & Company raised their target price on shares of Hewlett Packard Enterprise from $54.00 to $63.00 and gave the stock an “equal weight” rating in a report on Thursday. Finally, Bank of America boosted their target price on shares of Hewlett Packard Enterprise from $80.00 to $82.00 and gave the company a “buy” rating in a research report on Monday, August 31st. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $72.06.

Insider Activity at Hewlett Packard Enterprise

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 have sold 301,456 shares of company stock worth $18,193,758. 0.44% of the stock is owned by company insiders.

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 Vultr for AMD Helios AI rack systems to be deployed in U.S. data centers. The deal is HPE’s first order for AMD’s rack-scale AI platform and strengthens its position in high-performance AI infrastructure. HPE raises networking outlook and lands $1.2 billion Vultr AI order
• Positive Sentiment: Management raised its long-term networking revenue outlook, citing strong AI-driven demand across data-center networking, routing, security and related markets. HPE also said demand for AI infrastructure continues to exceed supply, supporting expectations for sustained growth. HPE networking outlook gets a boost
• Positive Sentiment: Analyst sentiment strengthened after the announcements. Daiwa upgraded HPE to outperform with a $75 target, while Citi raised its target to $92 and maintained a buy rating. Barclays, Truist and Morgan Stanley also lifted their targets, reinforcing the bullish AI and networking thesis. HPE analyst upgrade
• Neutral Sentiment: Analysts remain divided after HPE’s sharp rally. Wells Fargo and UBS retained cautious ratings with targets below the recent trading level, while commentary warns that supply constraints and substantial gains may limit near-term upside. HPE fair value estimate and analyst views
• Negative Sentiment: EVP Rami Rahim sold 34,456 shares for approximately $2.1 million. The transaction was made under a pre-arranged Rule 10b5-1 plan, and he continues to own roughly 875,000 shares, reducing its significance as a bearish signal. SEC insider trading filing

Institutional Trading of Hewlett Packard Enterprise

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Capital World Investors purchased a new position in Hewlett Packard Enterprise during the fourth quarter valued at $901,751,000. Barrow Hanley Mewhinney & Strauss LLC purchased a new stake in shares of Hewlett Packard Enterprise during the second quarter worth about $1,027,139,000. Primecap Management Co. CA acquired a new position in shares of Hewlett Packard Enterprise during the 2nd quarter worth about $773,225,000. Legal & General Group Plc purchased a new position in Hewlett Packard Enterprise in the 2nd quarter valued at about $512,721,000. Finally, Elliott Investment Management L.P. lifted its stake 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 valued at $652,912,000 after buying an additional 8,790,757 shares in the last quarter. 80.78% of the stock is currently owned by hedge funds and other institutional investors.

Hewlett Packard Enterprise Trading Up 7.5%

The company has a current ratio of 1.11, a quick ratio of 0.72 and a debt-to-equity ratio of 0.65. The company has a market capitalization of $92.12 billion, a price-to-earnings ratio of 36.14, a PEG ratio of 0.57 and a beta of 1.39. The company has a fifty day moving average of $55.38 and a 200-day moving average of $43.05.

Hewlett Packard Enterprise (NYSE:HPE) last posted its quarterly earnings data on Wednesday, September 2nd. The technology company reported $1.11 EPS for the quarter, topping the consensus estimate of $0.93 by $0.18. The company had revenue of $12.21 billion during the quarter, compared to analyst estimates of $11.97 billion. Hewlett Packard Enterprise had a return on equity of 15.50% and a net margin of 6.60%.Hewlett Packard Enterprise’s quarterly revenue was up 33.7% on a year-over-year basis. During the same period in the previous year, the business 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. As a group, equities research analysts anticipate that Hewlett Packard Enterprise Company will post 3.33 earnings per share for the current fiscal year.

Hewlett Packard Enterprise Dividend Announcement

The company also recently declared 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 dividend yield of 0.8%. The ex-dividend date is Thursday, September 17th. Hewlett Packard Enterprise’s payout ratio is presently 29.69%.

About Hewlett Packard Enterprise

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.