HP (NYSE:HPQ) Upgraded to Hold by Zacks Investment Research

HP (NYSE:HPQGet Rating) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued to investors on Thursday, Zacks.com reports. The brokerage currently has a $42.00 price objective on the computer maker’s stock. Zacks Investment Research‘s price objective would indicate a potential upside of 4.63% from the stock’s current price.

According to Zacks, “HP is benefiting from solid demand for Personal Computers (PCs) amid the pandemic-led remote-working and online-learning wave. Recently reported Q1 results reflect continued strong demand for its printers, which is a positive. Furthermore, stringent cost control measures are expected to drive margin over the long run. Moreover, HP’s expectation of repurchasing at least $4 billion worth of its common stock in FY22 is encouraging. Nonetheless, industry-wide components supply constraint might impact its PC and printer sales in the near-term. Moreover, elevated expenses and increased commodities and logistics costs is likely to keep gross margin under pressure in the near-term. Additionally, market and pricing environment are likely to normalize in 2H22, which may negatively impact HP’s top-line performance in the quarters ahead.”

A number of other brokerages have also weighed in on HPQ. JPMorgan Chase & Co. lowered their target price on HP from $41.00 to $39.00 in a research note on Wednesday, May 25th. UBS Group lowered HP from a “buy” rating to a “neutral” rating and set a $40.00 target price on the stock. in a research note on Friday, April 8th. StockNews.com upgraded HP from a “hold” rating to a “buy” rating in a research note on Wednesday, May 4th. Barclays increased their target price on HP from $29.00 to $32.00 and gave the stock an “underweight” rating in a research note on Wednesday. Finally, Morgan Stanley lowered HP from an “equal weight” rating to an “underweight” rating and lowered their price objective for the stock from $34.00 to $31.00 in a research note on Thursday, March 31st. Three investment analysts have rated the stock with a sell rating, eight have given a hold rating and three have assigned a buy rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $37.29.

NYSE HPQ traded down $0.20 during trading hours on Thursday, hitting $40.14. 335,098 shares of the company traded hands, compared to its average volume of 11,674,214. The business’s 50-day moving average is $37.48 and its 200-day moving average is $36.74. HP has a twelve month low of $26.11 and a twelve month high of $41.47. The stock has a market capitalization of $42.28 billion, a price-to-earnings ratio of 7.22, a P/E/G ratio of 2.28 and a beta of 0.92.

HP (NYSE:HPQGet Rating) last released its quarterly earnings data on Tuesday, May 31st. The computer maker reported $1.08 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.05 by $0.03. HP had a negative return on equity of 175.34% and a net margin of 9.61%. The company had revenue of $16.49 billion during the quarter, compared to analysts’ expectations of $16.19 billion. During the same period last year, the firm posted $0.93 earnings per share. The business’s revenue was up 3.9% on a year-over-year basis. As a group, research analysts forecast that HP will post 4.25 EPS for the current fiscal year.

In related news, CFO Marie Myers sold 20,638 shares of the firm’s stock in a transaction on Thursday, March 31st. The stock was sold at an average price of $36.58, for a total transaction of $754,938.04. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Bruce D. Broussard acquired 6,810 shares of the business’s stock in a transaction that occurred on Thursday, March 31st. The shares were purchased at an average cost of $36.67 per share, for a total transaction of $249,722.70. The disclosure for this purchase can be found here. In the last quarter, insiders sold 59,138 shares of company stock worth $2,152,908. Corporate insiders own 0.22% of the company’s stock.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Ironwood Wealth Management LLC. lifted its holdings in HP by 117.9% during the 2nd quarter. Ironwood Wealth Management LLC. now owns 2,674 shares of the computer maker’s stock worth $81,000 after buying an additional 1,447 shares during the period. Blueshift Asset Management LLC acquired a new position in HP during the 3rd quarter worth about $228,000. Macquarie Group Ltd. lifted its holdings in HP by 3.6% during the 3rd quarter. Macquarie Group Ltd. now owns 933,128 shares of the computer maker’s stock worth $25,531,000 after buying an additional 32,347 shares during the period. Gabelli Funds LLC acquired a new position in HP during the 3rd quarter worth about $287,000. Finally, Gamco Investors INC. ET AL lifted its holdings in HP by 4.8% during the 3rd quarter. Gamco Investors INC. ET AL now owns 36,299 shares of the computer maker’s stock worth $993,000 after buying an additional 1,650 shares during the period. 81.94% of the stock is currently owned by institutional investors.

About HP (Get Rating)

HP Inc provides products, technologies, software, solutions, and services to individual consumers, small- and medium-sized businesses, and large enterprises, including customers in the government, health, and education sectors worldwide. It operates through Personal Systems and Printing segments. The Personal Systems segment offers commercial personal computers (PCs), consumer PCs, workstations, thin clients, commercial tablets and mobility devices, retail point-of-sale systems, displays and other related accessories, software, support, and services for the commercial and consumer markets.

Further Reading

Get a free copy of the Zacks research report on HP (HPQ)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for HP (NYSE:HPQ)

Want More Great Investing Ideas?

Receive News & Ratings for HP Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for HP and related companies with MarketBeat.com's FREE daily email newsletter.