Stock analysts at Pivotal Research initiated coverage on shares of Hewlett Packard Enterprise Company (NYSE:HPE) in a report released on Tuesday, October 17th, Marketbeat reports. The firm set a “hold” rating and a $14.00 price target on the technology company’s stock. Pivotal Research’s target price points to a potential upside of 3.13% from the company’s current price.
The analysts wrote, “We use a PE and P/FCF multiple comparison to value the shares. Our rating is HOLD, and we put the price target at $14, or 11x our FY19 EPS estimate. Alternatively, our FCF estimates for FY18/FY19 are $2.0b and $2.25b. FCF has multiple has ranged between 7.5x and 11x. If we use a 11x on FY19E we get $24.7b market cap. Both estimates are where the shares are now. RISKS: Even with a smaller company there are still material, or even higher risks than before in a ‘portfolio’ set of businesses. Meg Whitman said it best “what I’ve learnt over the last six years in this business, there is always something that could happen.” The issues were commodity prices, competition, and at times FX. Now it remains the cloud, an economic downturn, or white box competition.””
Other equities research analysts also recently issued reports about the stock. Mizuho reissued a “buy” rating on shares of Hewlett Packard Enterprise in a research report on Wednesday, July 12th. CIBC cut their price target on shares of Hewlett Packard Enterprise from $27.00 to $21.00 and set a “buy” rating on the stock in a report on Tuesday, July 4th. Jefferies Group LLC reiterated a “buy” rating and issued a $22.00 target price on shares of Hewlett Packard Enterprise in a research note on Saturday, July 22nd. Oppenheimer Holdings, Inc. reiterated a “buy” rating and issued a $17.00 target price on shares of Hewlett Packard Enterprise in a research note on Friday, September 1st. Finally, ValuEngine raised shares of Hewlett Packard Enterprise from a “hold” rating to a “buy” rating in a research report on Friday, September 1st. Two analysts have rated the stock with a sell rating, twenty-two have issued a hold rating, eleven have assigned a buy rating and one has given a strong buy rating to the stock. Hewlett Packard Enterprise presently has an average rating of “Hold” and a consensus price target of $17.79.
Shares of Hewlett Packard Enterprise (NYSE HPE) traded up $0.07 during trading hours on Tuesday, hitting $13.58. 4,050,873 shares of the stock were exchanged, compared to its average volume of 10,896,495. The firm has a market capitalization of $21,862.76, a price-to-earnings ratio of 8.33, a PEG ratio of 1.74 and a beta of 2.59. The company has a current ratio of 1.27, a quick ratio of 1.15 and a debt-to-equity ratio of 0.50. Hewlett Packard Enterprise has a 52 week low of $12.97 and a 52 week high of $19.16.
Hewlett Packard Enterprise (NYSE:HPE) last announced its earnings results on Tuesday, September 5th. The technology company reported $0.30 earnings per share for the quarter, topping analysts’ consensus estimates of $0.26 by $0.04. The business had revenue of $8.21 billion during the quarter, compared to the consensus estimate of $7.49 billion. Hewlett Packard Enterprise had a net margin of 0.29% and a return on equity of 9.04%. Hewlett Packard Enterprise’s quarterly revenue was up 2.5% on a year-over-year basis. During the same quarter last year, the firm earned $0.49 earnings per share. research analysts anticipate that Hewlett Packard Enterprise will post 1.38 earnings per share for the current fiscal year.
Hewlett Packard Enterprise declared that its Board of Directors has approved a share buyback program on Wednesday, October 18th that permits the company to repurchase $5.00 billion in shares. This repurchase authorization permits the technology company to purchase shares of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s board believes its stock is undervalued.
In other news, CEO Margaret C. Whitman sold 249,052 shares of the company’s stock in a transaction dated Thursday, September 14th. The shares were sold at an average price of $13.14, for a total transaction of $3,272,543.28. Following the transaction, the chief executive officer now owns 892,118 shares in the company, valued at $11,722,430.52. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO Margaret C. Whitman sold 389,668 shares of the company’s stock in a transaction dated Wednesday, August 16th. The shares were sold at an average price of $17.64, for a total transaction of $6,873,743.52. Following the transaction, the chief executive officer now owns 962,433 shares in the company, valued at approximately $16,977,318.12. The disclosure for this sale can be found here. Insiders sold 3,222,617 shares of company stock valued at $46,989,767 over the last quarter. 0.87% of the stock is currently owned by corporate insiders.
A number of large investors have recently modified their holdings of HPE. BlackRock Inc. increased its holdings in Hewlett Packard Enterprise by 2,713.7% in the 1st quarter. BlackRock Inc. now owns 99,450,412 shares of the technology company’s stock worth $2,356,975,000 after buying an additional 95,915,907 shares during the period. Dodge & Cox boosted its position in Hewlett Packard Enterprise by 12.2% in the 2nd quarter. Dodge & Cox now owns 238,615,401 shares of the technology company’s stock worth $3,958,630,000 after purchasing an additional 25,852,541 shares in the last quarter. Hotchkis & Wiley Capital Management LLC boosted its position in Hewlett Packard Enterprise by 32.7% in the 2nd quarter. Hotchkis & Wiley Capital Management LLC now owns 67,334,620 shares of the technology company’s stock worth $1,117,081,000 after purchasing an additional 16,592,308 shares in the last quarter. Pzena Investment Management LLC boosted its position in Hewlett Packard Enterprise by 69.7% in the 3rd quarter. Pzena Investment Management LLC now owns 37,560,840 shares of the technology company’s stock worth $552,520,000 after purchasing an additional 15,431,606 shares in the last quarter. Finally, Victory Capital Management Inc. boosted its position in Hewlett Packard Enterprise by 145.3% in the 2nd quarter. Victory Capital Management Inc. now owns 10,266,112 shares of the technology company’s stock worth $170,315,000 after purchasing an additional 6,081,628 shares in the last quarter. Institutional investors own 81.34% of the company’s stock.
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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