Hewlett Packard Enterprise Company (NYSE:HPE) Coverage Initiated by Analysts at Pivotal Research

Stock analysts at Pivotal Research began coverage on shares of Hewlett Packard Enterprise Company (NYSE:HPE) in a report issued on Tuesday, October 17th, MarketBeat reports. The brokerage set a “hold” rating and a $14.00 price target on the technology company’s stock. Pivotal Research’s price target points to a potential downside of 1.75% from the company’s previous close.

The analysts wrote, “We use a PE and P/FCF multiple comparison to value the shares. Our rating is HOLD, and we put the price target at $14, or 11x our FY19 EPS estimate. Alternatively, our FCF estimates for FY18/FY19 are $2.0b and $2.25b. FCF has multiple has ranged between 7.5x and 11x. If we use a 11x on FY19E we get $24.7b market cap. Both estimates are where the shares are now. RISKS: Even with a smaller company there are still material, or even higher risks than before in a ‘portfolio’ set of businesses. Meg Whitman said it best “what I’ve learnt over the last six years in this business, there is always something that could happen.” The issues were commodity prices, competition, and at times FX. Now it remains the cloud, an economic downturn, or white box competition.””



HPE has been the topic of a number of other research reports. Barclays PLC reiterated a “sell” rating and issued a $14.00 price target on shares of Hewlett Packard Enterprise in a report on Friday, September 8th. CIBC cut their target price on shares of Hewlett Packard Enterprise from $27.00 to $21.00 and set a “buy” rating on the stock in a research note on Tuesday, July 4th. Royal Bank Of Canada reissued a “hold” rating and issued a $15.00 target price on shares of Hewlett Packard Enterprise in a research note on Wednesday, October 11th. BidaskClub downgraded shares of Hewlett Packard Enterprise from a “hold” rating to a “sell” rating in a research note on Saturday, August 5th. Finally, Loop Capital began coverage on shares of Hewlett Packard Enterprise in a research note on Tuesday, August 22nd. They set a “hold” rating and a $17.00 price target on the stock. Three analysts have rated the stock with a sell rating, twenty-one have given a hold rating, eleven have issued a buy rating and one has issued a strong buy rating to the company. The stock currently has an average rating of “Hold” and a consensus target price of $17.79.

Hewlett Packard Enterprise (NYSE HPE) traded up 0.28% during mid-day trading on Tuesday, reaching $14.29. The company had a trading volume of 2,650,787 shares. The stock’s 50-day moving average price is $14.23 and its 200 day moving average price is $13.89. Hewlett Packard Enterprise has a 52 week low of $12.51 and a 52 week high of $15.12. The firm has a market capitalization of $23.14 billion, a PE ratio of 198.47 and a beta of 2.71.

Hewlett Packard Enterprise (NYSE:HPE) last announced its earnings results on Tuesday, September 5th. The technology company reported $0.30 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.26 by $0.04. The firm had revenue of $8.21 billion for the quarter, compared to analyst estimates of $7.49 billion. Hewlett Packard Enterprise had a net margin of 0.29% and a return on equity of 9.04%. Hewlett Packard Enterprise’s revenue was up 2.5% compared to the same quarter last year. During the same quarter last year, the business earned $0.49 earnings per share. On average, equities research analysts predict that Hewlett Packard Enterprise will post $1.38 EPS for the current year.

Hewlett Packard Enterprise announced that its Board of Directors has authorized a share repurchase plan on Wednesday, October 18th that permits the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization permits the technology company to purchase shares of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board of directors believes its stock is undervalued.

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In other Hewlett Packard Enterprise news, CEO Margaret C. Whitman sold 138,401 shares of Hewlett Packard Enterprise stock in a transaction on Wednesday, August 2nd. The shares were sold at an average price of $17.45, for a total transaction of $2,415,097.45. Following the completion of the transaction, the chief executive officer now directly owns 896,720 shares of the company’s stock, valued at $15,647,764. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Margaret C. Whitman sold 249,052 shares of Hewlett Packard Enterprise stock in a transaction on Thursday, September 14th. The stock was sold at an average price of $13.14, for a total transaction of $3,272,543.28. Following the transaction, the chief executive officer now directly owns 892,118 shares of the company’s stock, valued at $11,722,430.52. The disclosure for this sale can be found here. Insiders have sold a total of 3,265,866 shares of company stock worth $49,009,446 over the last 90 days. Corporate insiders own 0.87% of the company’s stock.

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Dodge & Cox grew its holdings in shares of Hewlett Packard Enterprise by 12.2% during the second quarter. Dodge & Cox now owns 238,615,401 shares of the technology company’s stock worth $3,958,630,000 after purchasing an additional 25,852,541 shares during the last quarter. Vanguard Group Inc. raised its position in shares of Hewlett Packard Enterprise by 1.4% during the second quarter. Vanguard Group Inc. now owns 110,856,810 shares of the technology company’s stock worth $1,839,114,000 after purchasing an additional 1,508,612 shares during the period. BlackRock Inc. raised its position in shares of Hewlett Packard Enterprise by 2,713.7% during the first quarter. BlackRock Inc. now owns 99,450,412 shares of the technology company’s stock worth $2,356,975,000 after purchasing an additional 95,915,907 shares during the period. Hotchkis & Wiley Capital Management LLC raised its position in shares of Hewlett Packard Enterprise by 32.7% during the second quarter. Hotchkis & Wiley Capital Management LLC now owns 67,334,620 shares of the technology company’s stock worth $1,117,081,000 after purchasing an additional 16,592,308 shares during the period. Finally, Primecap Management Co. CA raised its position in shares of Hewlett Packard Enterprise by 9.6% during the first quarter. Primecap Management Co. CA now owns 61,397,295 shares of the technology company’s stock worth $1,455,116,000 after purchasing an additional 5,394,147 shares during the period. 81.35% of the stock is owned by hedge funds and other institutional investors.

Hewlett Packard Enterprise Company Profile

Hewlett Packard Enterprise Company is a provider of technology solutions. The Company’s segments include: Enterprise Group, Software, Financial Services and Corporate Investments. The Enterprise Group segment provides its customers with the technology infrastructure they need to optimize traditional information technology (IT).

Analyst Recommendations for Hewlett Packard Enterprise (NYSE:HPE)

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