HP (NYSE:HPQ) Trading 12.7% Higher – Still a Buy?

HP Inc. (NYSE:HPQ) traded up 12.7% during trading on Friday . The stock traded as high as $24.38 and last traded at $24.6870. 9,823,175 shares traded hands during mid-day trading, a decline of 47% from the average session volume of 18,372,408 shares. The stock had previously closed at $21.90.

HP News Summary

Here are the key news stories impacting HP this week:

• Positive Sentiment: Investors are betting that HP’s AI-powered PCs will drive stronger demand and improve results in the upcoming earnings report. Why Are HP (HPQ) Shares Soaring Today
• Positive Sentiment: HPQ has benefited from buying ahead of earnings and the next dividend qualification date, adding to momentum in the shares. HP Inc. (HPQ) Earnings, Dividends Loom, Shares Soar 15%
• Positive Sentiment: Strong results from Lenovo and renewed AI enthusiasm across the PC sector have reinforced optimism for HP and other hardware makers. Dell, HP surge after strong results from Lenovo amid AI enthusiasm
• Neutral Sentiment: Analysts are watching HPQ’s Q2 earnings closely, with AI PC demand and gaming products expected to support revenue, but the actual results have not yet been reported. HPQ to Report Q2 Earnings: What’s in the Cards for the Stock?

Analysts Set New Price Targets

Several research analysts recently commented on the company. Citigroup reduced their price objective on HP from $22.00 to $20.00 and set a “neutral” rating for the company in a research note on Tuesday, February 17th. Weiss Ratings reissued a “hold (c-)” rating on shares of HP in a research note on Monday, May 4th. The Goldman Sachs Group reduced their price objective on HP from $21.00 to $16.00 and set a “sell” rating for the company in a research note on Wednesday, February 25th. Morgan Stanley increased their price objective on HP from $16.00 to $17.00 and gave the company an “underweight” rating in a research note on Thursday. Finally, Zacks Research raised HP from a “strong sell” rating to a “hold” rating in a research note on Monday, April 6th. Two analysts have rated the stock with a Strong Buy rating, ten have issued a Hold rating and five have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Reduce” and an average target price of $21.67.

HP Stock Performance

The firm’s 50 day moving average price is $19.92 and its two-hundred day moving average price is $21.18. The firm has a market cap of $23.08 billion, a PE ratio of 9.56, a PEG ratio of 7.01 and a beta of 1.09.

HP (NYSE:HPQ) last posted its quarterly earnings results on Tuesday, February 24th. The computer maker reported $0.81 earnings per share for the quarter, beating the consensus estimate of $0.77 by $0.04. HP had a net margin of 4.46% and a negative return on equity of 367.41%. The business had revenue of $14.44 billion during the quarter, compared to analysts’ expectations of $13.87 billion. During the same quarter in the prior year, the company posted $0.74 EPS. The business’s revenue for the quarter was up 6.9% on a year-over-year basis. HP has set its Q2 2026 guidance at 0.700-0.760 EPS. On average, analysts forecast that HP Inc. will post 2.85 earnings per share for the current year.

HP Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Wednesday, June 10th will be given a $0.30 dividend. The ex-dividend date is Wednesday, June 10th. This represents a $1.20 dividend on an annualized basis and a yield of 4.8%. HP’s payout ratio is currently 45.45%.

Institutional Trading of HP

A number of hedge funds and other institutional investors have recently modified their holdings of HPQ. Garner Asset Management Corp acquired a new stake in shares of HP during the 4th quarter worth about $25,000. Flagship Harbor Advisors LLC acquired a new stake in shares of HP during the 4th quarter worth about $26,000. SHP Wealth Management acquired a new stake in shares of HP during the 4th quarter worth about $26,000. Sound Income Strategies LLC increased its position in shares of HP by 97.0% during the 4th quarter. Sound Income Strategies LLC now owns 1,312 shares of the computer maker’s stock worth $27,000 after purchasing an additional 646 shares during the last quarter. Finally, Westfuller Advisors LLC acquired a new stake in shares of HP during the 3rd quarter worth about $28,000. 77.53% of the stock is owned by institutional investors and hedge funds.

About HP

HP Inc is an American multinational information technology company that designs, manufactures and sells personal computing devices, printers and related supplies and services. Its product portfolio spans consumer and commercial notebooks and desktops, workstations, displays and accessories, as well as an extensive line of printing hardware that includes home, office and production printers. HP also provides consumables such as ink and toner, managed print services, device deployment and lifecycle support, and software for device and print management.

Founded from the original Hewlett‑Packard Company, HP Inc became a separately traded public company in 2015 following a corporate split that created Hewlett Packard Enterprise to focus on enterprise hardware and services.