According to a recent report by Bloomberg, research firms covering HP Inc. (NYSE:HPQ) have given the company an average rating of “Reduce.” Out of thirteen research firms, three have recommended selling the stock, nine have suggested holding it, and only one has issued a buy recommendation on the company. These ratings provide insight into the current sentiment surrounding HP’s performance.
In addition to these ratings, recent insider transactions within the company have caught attention. On June 30th, insider Alex Cho sold 22,490 shares of HP stock at an average price of $30.50, totaling $685,945.00 in value. After this transaction, Cho now holds 22,003 shares in the company with an approximate value of $671,091.50. Director Subra Suresh also sold 6,659 shares on July 11th at an average price of $33.00, worth $219,747.00 in total.
These sales were publicly disclosed through legal filings with the Securities & Exchange Commission (SEC), accessible via the SEC website or through specific hyperlinks provided in the reports. The disclosures revealed that insiders have collectively sold 198,620 shares worth $6,108,881 during the past 90 days. It is noteworthy that insiders currently own only 0.32% of HP’s stock.
Looking back at HP’s last earnings report released on May 30th, the computer maker reported earnings per share (EPS) of $0.80 for the quarter—a positive surprise as it surpassed analysts’ consensus estimates by $0.04 per share ($0.76 EPS expected). However, HP had a concerning negative return on equity (ROE) reaching -121.57% and a net margin of 4.75%. The company garnered a revenue of $12.91 billion for this quarter—lower than analyst expectations of $13.07 billion—and experienced a 21.7% decrease compared to the same quarter in the previous year.
With these figures in mind, research analysts anticipate that HP will post an EPS of 3.35 for the current fiscal year. It is essential to consider all available information—including ratings, insider transactions, and quarterly financial results—when evaluating a company’s performance and making investment decisions.
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Analysts and Investors Monitor HP’s Performance and Provide Recommendations for Future Prospects
August 17, 2023 – In recent months, HP (NYSE: HPQ) has caught the attention of several equities research analysts who are closely monitoring the company’s performance. These experts have provided insights and recommendations regarding the company’s stock, shedding light on its future prospects.
One notable research note came from Citigroup, which initiated coverage on HP on Thursday, June 29th. They issued a “neutral” rating for the company along with a $32.00 price objective. This suggests that while Citigroup remains undecided about the potential upside of investing in HP, they believe it to be a fair investment option at its current valuation.
Similarly, UBS Group raised their target price on HP from $30.00 to $31.00 in a research report released on Wednesday, May 31st. This indicates their belief in the growth potential of the company and their confidence in its ability to deliver value to its investors.
Another noteworthy recommendation came from StockNews.com, which upgraded HP’s rating from “hold” to “buy” in a research report published on Wednesday. This upward revision reflects the organization’s positive outlook on HP’s future performance and encourages investors to consider purchasing shares in anticipation of favorable returns.
58.com reaffirmed a “maintains” rating for HP shares in their research report released on Wednesday, May 31st. While not necessarily an emphatic endorsement like other firms’, this maintains rating hints at stability and suggests that despite ongoing uncertainties and fluctuations in the market, 58.com believes that maintaining investments in HP is prudent.
Morgan Stanley also played into this mix by upgrading shares of HP from an “underweight” rating to an “equal weight” rating while increasing their target price for the stock from $28.00 to $31.00—a significantly positive reassessment made known through a research note published on Monday, May 1st.
Aside from analyses by research analysts, the movements of institutional investors and hedge funds are often regarded as influential indicators of a company’s potential. In this regard, HP has drawn the attention of several such investors in recent times.
KCS Wealth Advisory, for instance, grew its position in HP shares by 1.0% during the second quarter. This increase was complemented by King Luther Capital Management Corp, which expanded its holdings by 3.2% during the same period. Glassman Wealth Services also experienced growth in their position in HP shares—a notable increase of 24.8% during the fourth quarter.
Ballentine Partners LLC and First Command Bank joined this rising trend by expanding their positions in HP shares by 0.9% and 25.4%, respectively. These investments further highlight the growing attractiveness of HP as an investment option among institutional investors and hedge funds.
As of Thursday’s opening bell, HP shares were trading at $31.30 on the New York Stock Exchange (NYSE). The company boasts a market capitalization of $30.86 billion, with a price-to-earnings ratio of 11.86 and a price-to-earnings-growth ratio of 2.40—an indication that the stock may be undervalued compared to its anticipated growth potential.
Furthermore, it is interesting to note that HP has shown resilience amidst market volatility with a beta score of 1.01—an element that suggests its stock may be less volatile than the overall market.
The stock’s performance over time has displayed certain trends worth mentioning for potential investors to consider: at present, it has a 50-day moving average price slightly below the opening value at $31.68, while holding a solid performance when observed over its average price for the past year ($30.25). Moreover, it exemplifies stability within its trading range given its twelve month low point ($24.08) compared to its twelve month high point ($35.32).
As investors continue to assess the merits of investing in HP, the recommendations provided by research analysts and the movements of institutional investors and hedge funds will be crucial sources of information. Through these insights, stakeholders can make informed decisions about whether to invest in this technology company, known for its innovation and contributions to the computing industry.
