Zacks Investment Research Downgrades HP (HPQ) to Hold
HP (NYSE:HPQ) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday.
According to Zacks, “HP reported stellar fourth-quarter fiscal 2017 results driven mainly by strength in Personal System and Printing segments. We are impressed by the performance of HP’s PC segment, wherein the year-over-year increase was witnessed due to growth in Commercial and Consumer revenues. HP’s efforts to turn around the business have been commendable. The company is working on product innovation, differentiation and enhancing the capabilities of its printing business to stabilize the top line. Furthermore, looking at the recently released data on PC shipment by IDC depicts that HP’s restructuring initiatives which includes divestment of non-core assets and cutting jobs to lower costs along with focus on product innovations, pricing, marketing and sales activities, are paying off. Nonetheless, pricing pressure due to intense competition remains a major concern. Moreover, a tepid IT spending environment adds to its woes.”
A number of other equities research analysts have also recently weighed in on the company. Guggenheim restated a “neutral” rating on shares of HP in a research note on Monday, October 2nd. Morgan Stanley increased their price target on HP from $23.00 to $25.00 and gave the company an “overweight” rating in a research note on Friday, October 13th. Jefferies Group restated a “hold” rating and issued a $20.00 price target on shares of HP in a research note on Sunday, October 8th. Susquehanna Bancshares restated a “hold” rating and issued a $20.00 price target on shares of HP in a research note on Friday, August 25th. Finally, Deutsche Bank restated a “buy” rating on shares of HP in a research note on Thursday, August 24th. Twelve analysts have rated the stock with a hold rating, thirteen have issued a buy rating and one has issued a strong buy rating to the company. HP currently has a consensus rating of “Buy” and an average price target of $21.31.
HP (NYSE:HPQ) last announced its quarterly earnings data on Tuesday, November 21st. The computer maker reported $0.44 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.44. HP had a negative return on equity of 70.25% and a net margin of 4.85%. The company had revenue of $13.93 billion for the quarter, compared to analysts’ expectations of $13.36 billion. During the same quarter in the prior year, the business posted $0.36 EPS. The business’s revenue was up 11.3% compared to the same quarter last year. research analysts forecast that HP will post 1.79 earnings per share for the current year.
In other news, insider Marie Myers sold 10,025 shares of the stock in a transaction on Thursday, September 21st. The stock was sold at an average price of $19.75, for a total transaction of $197,993.75. Following the sale, the insider now directly owns 10,025 shares of the company’s stock, valued at approximately $197,993.75. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CEO Dion J. Weisler sold 95,521 shares of the stock in a transaction on Monday, September 25th. The stock was sold at an average price of $19.97, for a total value of $1,907,554.37. Following the sale, the chief executive officer now directly owns 435,018 shares in the company, valued at $8,687,309.46. The disclosure for this sale can be found here. Insiders have sold a total of 2,139,153 shares of company stock worth $44,020,119 in the last quarter. Company insiders own 0.62% of the company’s stock.
Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Bronfman E.L. Rothschild L.P. grew its holdings in shares of HP by 19.7% during the 2nd quarter. Bronfman E.L. Rothschild L.P. now owns 6,167 shares of the computer maker’s stock worth $108,000 after purchasing an additional 1,013 shares in the last quarter. YorkBridge Wealth Partners LLC boosted its stake in HP by 3.2% in the second quarter. YorkBridge Wealth Partners LLC now owns 6,457 shares of the computer maker’s stock valued at $113,000 after buying an additional 200 shares in the last quarter. Evercore Wealth Management LLC boosted its stake in HP by 14.0% in the second quarter. Evercore Wealth Management LLC now owns 6,793 shares of the computer maker’s stock valued at $119,000 after buying an additional 836 shares in the last quarter. D.A. Davidson & CO. boosted its stake in HP by 1.1% in the second quarter. D.A. Davidson & CO. now owns 7,580 shares of the computer maker’s stock valued at $132,000 after buying an additional 85 shares in the last quarter. Finally, Advisory Services Network LLC boosted its stake in HP by 9.8% in the second quarter. Advisory Services Network LLC now owns 9,217 shares of the computer maker’s stock valued at $161,000 after buying an additional 824 shares in the last quarter. 79.98% of the stock is currently owned by institutional investors.
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HP Company Profile
HP Inc is a provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses, and enterprises, including customers in the government, health and education sectors. The Company provides personal computing and other access devices, imaging and printing products, and related technologies, solutions and services.
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