Technicals Say Hewlett Packard Enterprise Company (HPE) Is A Hold

Hewlett Packard Enterprise Company (NYSE:HPE) finished Tuesday with an addition of $0.18 to close at $15.03, an upside of 1.21 percent. An average of 12,975,940 shares of common stock have been traded in the last five days. There was a gain of $0.85 in the past week. The last 20 days have seen an average of 11,739,625 shares traded, while the 50-day average volume stands at 9,082,922.

HPE stock has decreased by -2.91% in the last month. The company shares reached their 1-month lowest point of $12.99 on 09/21/21. With the stock rallying to its 52-week high on 05/10/21, shares of the company touched a low of $8.28 and a high of $16.74 in 52 weeks. In spite of this, the price is down -10.22% from the 52-week high.


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Insider Transactions

26 days have passed since Hewlett Packard Enterprise Company (HPE) last reported insider trading activity. Black Thomas E Jr, who is SVP, GM of Storage, most recently acquired $16,512 shares at $14.55 per share on Sep 10. In this transaction, the insider spent $240,250. Pres & CEO Financial Services, Rothman Irv, disposed of 10,000 shares at a price of $14.96 on Sep 08. The insider now owns more than $149,600 worth of shares. Prior to that, SVP, GM of Storage Black Thomas E Jr went on to Sale 11,155 shares at $15.64 each on Jun 15. An amount of $174,464 was transacted.

Valuation Metrics

Hewlett Packard Enterprise Company (HPE) has a trailing price-to-earnings (P/E) ratio of 19.32, which compares with the 23.30 for the broader industry and 36.42 for the sector. This means investors are optimistic about the stock’s future prospects. In the last five years, Hewlett Packard Enterprise Company’s PE ratio has ranged between 213.86 and 5.068. The stock’s beta is 1.24. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.69, the price-to-book (PB) ratio at 1.16, and the price-to-cash flow ratio at 27.22.

Hewlett Packard Enterprise Company pays a $0.48 dividend per share annually. It offers a dividend yield of 3.19%. The company has a payout ratio of 60.80%. The company’s most recent quarterly dividend payment took place on Oct. 6 , and it was $0.12 a share, without any change from last year. Its dividend has been increased for the last 5 consecutive years with the latest increase dividend $0.0080 reported on Wednesday October 23 2019. Dividends have grown by 77.78% each year over the last three years.

Hewlett Packard Enterprise Company will next go ex-dividend on 10-Dec. The next dividend payment Hewlett Packard Enterprise Company will make is expected to be $0.12.

The quick ratio of Hewlett Packard Enterprise Company for the three months ended July 30 was 0.80, and the current ratio was 1.00, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.73 and a total debt to equity ratio of 0.95 for the quarter ending July 30. On the profitability front, the trailing 12-month gross margin is 33.20% against a 5-year average of 31.2%. Hewlett Packard Enterprise Company’s EBITDA margin for the year ending July 30 is 15.51%, while its operating margin for the same period stands at 3.40%. Its gross profit as reported stood at $8.47 billion compared to revenue of $26.98 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Hewlett Packard Enterprise Company’s return on assets was 1.90%, compared to 1.8% over the last five years. In the past year, the return on investment has been -0.70%, and the 5-year average is 3.0%. Meanwhile, the return on equity (ROE) for the past 12 months has been 6.30% and the 5-year average holds at 4.6%. For the broader industry, ROE averaged 3.62 over the past year.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Hewlett Packard Enterprise Company (HPE) price momentum. RSI 9-day as of the close on 05 October was 72.32%, suggesting the stock is Overbought, with historical volatility in this time frame at 18.31%.

As of today, HPE’s price is $14.57 +5.99% or $0.85 from its 5-day moving average. HPE is currently trading +0.07% higher than its 20-day SMA and -6.47% lower than its 100-day SMA. However, the stock’s current price level is +4.16% above the SMA50 and +23.40% above the SMA200.

The stochastic %K and %D were 93.06% and 85.58%, respectively, and the average true range (ATR) was 0.41. With the 14-day stochastic at 94.44% and the average true range at 0.40, the RSI (14) stands at 63.47%. The stock has reached 0.63 on the 9-day MACD Oscillator while the 14-day reading was at 0.94.

Analyst Ratings

Evercore ISI upgraded Hewlett Packard Enterprise Company (NYSE: HPE) to a an Outperform rating in its most recent analyst report. Previously, the stock was rated as a an In-line.The consensus rating for Hewlett Packard Enterprise Company (HPE) among analysts is Overweight. According to current brokerage recommendations, 2 brokerage firms advise that investors sell HPE, while 11 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 3 analysts, while 9 others rate it as a “buy”.

What is HPE’s price target for the next 12 months?

Analysts predict a range of price targets between $13.00 and $20.00, with a median target of $18.00. Taking a look at these predictions, the average price target given by analysts for Hewlett Packard Enterprise Company (HPE) stock is $17.44.

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