HP (NYSE:HPQ) Shares Gap Up on Better-Than-Expected Earnings

HP Inc. (NYSE:HPQGet Free Report) shares gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $32.80, but opened at $34.40. HP shares last traded at $36.34, with a volume of 3,516,496 shares trading hands.

The computer maker reported $0.82 earnings per share for the quarter, topping the consensus estimate of $0.81 by $0.01. The company had revenue of $12.80 billion during the quarter, compared to the consensus estimate of $12.61 billion. HP had a net margin of 6.45% and a negative return on equity of 181.02%. HP’s quarterly revenue was down .8% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.80 EPS.

HP Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Saturday, July 13th. Investors of record on Wednesday, June 12th will be given a dividend of $0.2756 per share. This represents a $1.10 annualized dividend and a dividend yield of 2.87%. The ex-dividend date of this dividend is Wednesday, June 12th. HP’s dividend payout ratio is currently 32.16%.

Analysts Set New Price Targets

Several research firms have weighed in on HPQ. Wells Fargo & Company upped their price target on HP from $25.00 to $30.00 and gave the stock an “underweight” rating in a research note on Thursday. Bank of America upped their target price on shares of HP from $35.00 to $37.00 and gave the stock a “buy” rating in a research report on Thursday. Citigroup raised their target price on shares of HP from $35.00 to $37.00 and gave the company a “buy” rating in a research note on Thursday. JPMorgan Chase & Co. boosted their price target on shares of HP from $34.00 to $38.00 and gave the stock an “overweight” rating in a research note on Thursday. Finally, Barclays raised their price objective on HP from $30.00 to $33.00 and gave the company an “equal weight” rating in a research report on Thursday. One research analyst has rated the stock with a sell rating, four have assigned a hold rating and eight have given a buy rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $34.64.

View Our Latest Research Report on HP

Insider Buying and Selling at HP

In related news, insider Stephanie Liebman sold 8,708 shares of the firm’s stock in a transaction on Friday, March 8th. The stock was sold at an average price of $30.93, for a total value of $269,338.44. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. In other HP news, Director Robert R. Bennett sold 67,000 shares of the firm’s stock in a transaction dated Thursday, March 21st. The shares were sold at an average price of $30.01, for a total value of $2,010,670.00. Following the completion of the sale, the director now owns 60,216 shares of the company’s stock, valued at $1,807,082.16. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, insider Stephanie Liebman sold 8,708 shares of the company’s stock in a transaction that occurred on Friday, March 8th. The shares were sold at an average price of $30.93, for a total value of $269,338.44. The disclosure for this sale can be found here. Insiders have sold a total of 116,723 shares of company stock worth $3,479,287 over the last ninety days. Company insiders own 0.41% of the company’s stock.

Institutional Investors Weigh In On HP

A number of institutional investors and hedge funds have recently modified their holdings of HPQ. Vanguard Group Inc. lifted its position in shares of HP by 2.6% during the first quarter. Vanguard Group Inc. now owns 120,778,246 shares of the computer maker’s stock worth $3,649,919,000 after purchasing an additional 3,062,441 shares during the last quarter. LSV Asset Management boosted its position in HP by 3.3% in the 1st quarter. LSV Asset Management now owns 12,674,646 shares of the computer maker’s stock valued at $383,028,000 after buying an additional 403,355 shares during the period. Northern Trust Corp grew its stake in HP by 0.4% in the 4th quarter. Northern Trust Corp now owns 10,172,444 shares of the computer maker’s stock worth $306,089,000 after acquiring an additional 40,884 shares in the last quarter. Pacer Advisors Inc. increased its position in shares of HP by 4,180.9% during the fourth quarter. Pacer Advisors Inc. now owns 9,516,510 shares of the computer maker’s stock worth $286,352,000 after acquiring an additional 9,294,209 shares during the period. Finally, Invesco Ltd. raised its stake in shares of HP by 13.8% during the third quarter. Invesco Ltd. now owns 8,220,098 shares of the computer maker’s stock valued at $211,257,000 after acquiring an additional 995,132 shares in the last quarter. 77.53% of the stock is owned by institutional investors.

HP Stock Up 17.0 %

The firm has a 50 day moving average of $29.87 and a 200-day moving average of $29.54. The company has a market cap of $37.63 billion, a P/E ratio of 11.22, a PEG ratio of 2.48 and a beta of 1.06.

HP Company Profile

(Get Free Report)

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

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