Are You Looking To Buy HP Inc. (HPQ)? First, Read This

HP Inc. (NYSE:HPQ) finished Thursday with a subtraction of -$0.4 to close at $30.75, a downside of -1.28 percent. An average of 4,674,100 shares of common stock have been traded in the last five days. There was a fall of -$0.21 in the past week, and it reached a new high 1 time over the past 12 months. The last 20 days have seen an average of 4,808,035 shares traded, while the 50-day average volume stands at 6,219,466.

HPQ stock has decreased by -6.93% in the last month. The company shares reached their 1-month lowest point of $30.67 on 08/22/23. With the stock rallying to its 52-week high on 07/12/23, shares of the company touched a low of $24.08 and a high of $34.52 in 52 weeks. It has reached a new high 12 times so far this year and achieved 14.44% or $3.88 in price. In spite of this, the price is down -10.92% from the 52-week high.

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Insider Transactions

HPQ stock investors should be aware that HP Inc. (HPQ) stock had its last reported insider trading activity 24 days ago on Aug 01. In this transaction, the insider spent $135,654. Director, SURESH SUBRA, disposed of 6,659 shares at a price of $33.00 on Jul 11. The insider now owns more than $219,747 worth of shares. Prior to that, President and CEO LORES ENRIQUE went on to Sale 156,976 shares at $30.69 each on Jul 03. An amount of $4,817,593 was transacted.

Valuation Metrics

HP Inc. (HPQ) has a trailing price-to-earnings (P/E) ratio of 11.67. The stock’s beta is 1.02. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.54, and the price-to-cash flow ratio at 13.39.

Financial Health

The quick ratio of HP Inc. for the three months ended April 29 was 0.40, and the current ratio was 0.70, indicating that the company is not able to meet its debt obligations. HP Inc.’s EBITDA margin for the year ending April 29 is 8.45%, while its operating margin for the same period stands at 6.30%. Its gross profit as reported stood at $12.34 billion compared to revenue of $62.98 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, HP Inc.’s return on assets was 7.10%.

Earnings Surprise

For the three-month period that ended April 29, HP Inc. had $10.36 billion in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $1.07 billion in the quarter, while revenues were grew 6.19%. The analyst consensus anticipated HP Inc.’s latest quarter earnings to come in at $0.76 per share, but it turned out to be $0.8, a 5.30% surprise. For the quarter, EBITDA amounted to $974.0 million. Shareholders own equity worth $985.96 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at HP Inc. (HPQ) price momentum. RSI 9-day as of the close on 24 August was 29.75%, suggesting the stock is oversold, with historical volatility in this time frame at 13.85%.

As of today, HPQ’s price is $31.05 -0.68% or -$0.21 from its 5-day moving average. HPQ is currently trading -6.48% lower than its 20-day SMA and +4.77% higher than its 100-day SMA. However, the stock’s current price level is -0.45% below the SMA50 and +8.70% above the SMA200.

The stochastic %K and %D were 11.78% and 16.05%, respectively, and the average true range (ATR) was 0.58. With the 14-day stochastic at 3.11% and the average true range at 0.59, the RSI (14) stands at 36.37%. The stock has reached -0.30 on the 9-day MACD Oscillator while the 14-day reading was at -0.87.