HP (NYSE:HPQ) Rating Lowered to Sell at Zacks Investment Research

HP (NYSE:HPQ) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Thursday, Zacks.com reports. They presently have a $21.00 price objective on the computer maker’s stock. Zacks Investment Research‘s price target would suggest a potential upside of 7.58% from the company’s previous close.

According to Zacks, “HP is benefiting from strong growth in Personal Systems revenues. Increase in sales for commercial customers is a tailwind. The company is gaining from Windows 10 refresh cycle, which is likely to remain a tailwind. Rising demand for notebooks, desktops and workstations on the back of product innovation and differentiations is an upside. Further, improvement in product mix coupled with stringent cost control is driving margin expansion. The company's improving market share across the PC and Printer businesses makes us optimitistic. Estimates have been stable lately ahead of the company’s Q4 earnings release. However, macroeconomic, geopolitical and tariff related uncertainties are a headwind. Further, competition from Lenovo and Dell is a concern. Weakness in the Printing business, due to softness in EMEA market, remains an overhang.”

A number of other equities research analysts have also issued reports on the stock. Bank of America decreased their target price on shares of HP from $17.00 to $16.00 and set an “underperform” rating for the company in a research note on Friday, October 4th. Sanford C. Bernstein lowered shares of HP from an “outperform” rating to a “market perform” rating and set a $20.00 target price for the company. in a research note on Monday, September 9th. Loop Capital lowered shares of HP from a “buy” rating to a “hold” rating and decreased their target price for the company from $21.00 to $19.00 in a research note on Friday, October 4th. Morgan Stanley decreased their target price on shares of HP from $21.00 to $20.00 and set a “weight” rating for the company in a research note on Friday, October 4th. Finally, JPMorgan Chase & Co. set a $19.00 target price on shares of HP and gave the company a “hold” rating in a research note on Friday, August 23rd. Three analysts have rated the stock with a sell rating, twelve have assigned a hold rating and three have issued a buy rating to the company. The company currently has an average rating of “Hold” and an average target price of $19.80.

Shares of NYSE:HPQ traded up $0.13 during trading on Thursday, reaching $19.52. 21,217,413 shares of the company traded hands, compared to its average volume of 11,513,799. The firm has a fifty day simple moving average of $17.62 and a 200 day simple moving average of $19.24. The firm has a market cap of $28.47 billion, a P/E ratio of 9.66, a price-to-earnings-growth ratio of 3.60 and a beta of 1.41. HP has a 1-year low of $15.93 and a 1-year high of $25.49.

HP (NYSE:HPQ) last issued its earnings results on Thursday, August 22nd. The computer maker reported $0.58 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.55 by $0.03. The company had revenue of $14.60 billion during the quarter, compared to analyst estimates of $14.58 billion. HP had a net margin of 7.18% and a negative return on equity of 265.02%. The company’s revenue for the quarter was up .1% on a year-over-year basis. During the same quarter last year, the business posted $0.52 EPS. As a group, research analysts anticipate that HP will post 2.21 EPS for the current fiscal year.

In other news, insider Dion J. Weisler sold 437,171 shares of the firm’s stock in a transaction on Monday, August 26th. The shares were sold at an average price of $18.01, for a total transaction of $7,873,449.71. The transaction was disclosed in a filing with the SEC, which is accessible through this link. 0.25% of the stock is currently owned by company insiders.

Several institutional investors have recently added to or reduced their stakes in the company. Rothschild & Co Wealth Management UK Ltd bought a new position in HP in the 2nd quarter worth $33,000. Transamerica Financial Advisors Inc. bought a new position in HP in the 2nd quarter worth $38,000. Coastal Capital Group Inc. bought a new position in HP in the 2nd quarter worth $39,000. Redhawk Wealth Advisors Inc. bought a new position in HP in the 2nd quarter worth $41,000. Finally, Berman Capital Advisors LLC raised its holdings in HP by 378.6% in the 2nd quarter. Berman Capital Advisors LLC now owns 2,034 shares of the computer maker’s stock worth $42,000 after acquiring an additional 1,609 shares during the period. Institutional investors and hedge funds own 79.84% of the company’s stock.

About HP

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.

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