Zacks Investment Research downgraded shares of HP (NYSE:HPQ) from a hold rating to a sell rating in a report published on Thursday morning, Zacks.com reports. They currently have $21.00 target price on the computer maker’s stock.
According to Zacks, “HP is benefiting from strong growth in Personal Systems revenues. Increase in sales for commercial customers is a tailwind. The company is gaining from Windows 10 refresh cycle, which is likely to remain a tailwind. Rising demand for notebooks, desktops and workstations on the back of product innovation and differentiations is an upside. Further, improvement in product mix coupled with stringent cost control is driving margin expansion. The company's improving market share across the PC and Printer businesses makes us optimitistic. Estimates have been stable lately ahead of the company’s Q4 earnings release. However, macroeconomic, geopolitical and tariff related uncertainties are a headwind. Further, competition from Lenovo and Dell is a concern. Weakness in the Printing business, due to softness in EMEA market, remains an overhang.”
HPQ has been the topic of several other reports. ValuEngine upgraded shares of HP from a sell rating to a hold rating in a research note on Wednesday, October 2nd. Goldman Sachs Group lowered shares of HP from a neutral rating to a sell rating and lowered their price target for the company from $18.00 to $14.00 in a research note on Thursday, October 10th. Loop Capital lowered shares of HP from a buy rating to a hold rating and lowered their price target for the company from $21.00 to $19.00 in a research note on Friday, October 4th. UBS Group lowered shares of HP from a buy rating to a neutral rating and lowered their price objective for the stock from $26.00 to $20.00 in a research note on Monday, September 16th. Finally, Argus lowered shares of HP from a buy rating to a hold rating in a research note on Monday, October 7th. Three analysts have rated the stock with a sell rating, twelve have assigned a hold rating and three have issued a buy rating to the company. HP has a consensus rating of Hold and an average price target of $19.80.
HP (NYSE:HPQ) last issued its quarterly earnings results on Thursday, August 22nd. The computer maker reported $0.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.55 by $0.03. HP had a net margin of 7.18% and a negative return on equity of 265.02%. The firm had revenue of $14.60 billion for the quarter, compared to analyst estimates of $14.58 billion. During the same period in the previous year, the business earned $0.52 EPS. The company’s revenue was up .1% compared to the same quarter last year. As a group, equities research analysts forecast that HP will post 2.21 earnings per share for the current fiscal year.
In related news, insider Dion J. Weisler sold 437,171 shares of HP stock in a transaction dated Monday, August 26th. The shares were sold at an average price of $18.01, for a total transaction of $7,873,449.71. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.25% of the stock is owned by insiders.
Several hedge funds have recently made changes to their positions in the stock. Rothschild & Co Wealth Management UK Ltd bought a new stake in HP in the 2nd quarter valued at about $33,000. Transamerica Financial Advisors Inc. bought a new stake in HP in the 2nd quarter valued at about $38,000. Coastal Capital Group Inc. bought a new stake in HP in the 2nd quarter valued at about $39,000. Redhawk Wealth Advisors Inc. bought a new stake in HP in the 2nd quarter valued at about $41,000. Finally, Berman Capital Advisors LLC boosted its holdings in HP by 378.6% in the 2nd quarter. Berman Capital Advisors LLC now owns 2,034 shares of the computer maker’s stock valued at $42,000 after purchasing an additional 1,609 shares during the period. 79.84% of the stock is owned by institutional investors and hedge funds.
HP Inc provides products, technologies, software, solutions, and services to individual consumers, small- and medium-sized businesses, and large enterprises, including customers in the government, health, and education sectors worldwide. It operates through Personal Systems and Printing segments. The Personal Systems segment offers commercial personal computers (PCs), consumer PCs, workstations, thin clients, commercial tablets and mobility devices, retail point-of-sale systems, displays and other related accessories, software, support, and services for the commercial and consumer markets.
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