Summit Street Capital Management LLC purchased a new stake in HP Inc. (NYSE:HPQ – Free Report) in the 2nd quarter, Holdings Channel.com reports. The institutional investor purchased 1,189,974 shares of the computer maker’s stock, valued at approximately $26,108,000. HP accounts for 3.7% of Summit Street Capital Management LLC’s holdings, making the stock its 9th largest holding.
A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its position in shares of HP by 1.9% in the fourth quarter. Vanguard Group Inc. now owns 132,094,388 shares of the computer maker’s stock valued at $2,943,063,000 after acquiring an additional 2,435,634 shares during the period. BlackRock Inc. acquired a new position in shares of HP in the second quarter valued at about $2,357,757,000. State Street Corp increased its position in HP by 5.3% during the third quarter. State Street Corp now owns 52,703,639 shares of the computer maker’s stock worth $1,450,245,000 after acquiring an additional 2,651,623 shares during the period. Geode Capital Management LLC raised its stake in HP by 1.0% in the 4th quarter. Geode Capital Management LLC now owns 27,313,924 shares of the computer maker’s stock worth $607,373,000 after purchasing an additional 274,033 shares in the last quarter. Finally, Primecap Management Co. CA acquired a new stake in HP in the 2nd quarter worth about $545,984,000. 77.53% of the stock is owned by institutional investors and hedge funds.
Analyst Upgrades and Downgrades
A number of research analysts have issued reports on the stock. Wall Street Zen upgraded shares of HP from a “hold” rating to a “buy” rating in a research report on Saturday, August 22nd. Bank of America lifted their price target on shares of HP from $16.00 to $18.00 and gave the company an “underperform” rating in a research report on Thursday, May 28th. Barclays boosted their price target on HP from $16.00 to $19.00 and gave the company an “underweight” rating in a research note on Thursday, May 28th. Evercore set a $32.00 price target on HP in a research report on Monday. Finally, JPMorgan Chase & Co. raised their price objective on HP from $22.00 to $26.00 and gave the stock a “neutral” rating in a research note on Thursday, May 28th. Two equities research analysts have rated the stock with a Strong Buy rating, eight have assigned a Hold rating and five have issued a Sell rating to the company. According to MarketBeat.com, HP presently has a consensus rating of “Reduce” and a consensus target price of $24.17.
HP Trading Up 3.7%
NYSE HPQ opened at $30.62 on Thursday. The firm’s 50 day simple moving average is $26.11 and its 200 day simple moving average is $22.63. The firm has a market capitalization of $28.00 billion, a price-to-earnings ratio of 11.30, a P/E/G ratio of 4.90 and a beta of 1.17. HP Inc. has a 1 year low of $17.56 and a 1 year high of $32.19.
HP (NYSE:HPQ – Get Free Report) last announced its quarterly earnings data on Wednesday, August 26th. The computer maker reported $0.83 EPS for the quarter, beating the consensus estimate of $0.66 by $0.17. HP had a net margin of 4.45% and a negative return on equity of 581.36%. The business had revenue of $15.68 billion during the quarter, compared to the consensus estimate of $14.44 billion. During the same period in the previous year, the business earned $0.75 earnings per share. The company’s revenue was up 12.5% on a year-over-year basis. HP has set its FY 2026 guidance at 3.190-3.290 EPS and its Q4 2026 guidance at 0.690-0.790 EPS. On average, equities research analysts forecast that HP Inc. will post 3.03 earnings per share for the current year.
HP Dividend Announcement
The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 7th. Investors of record on Wednesday, September 9th will be given a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a dividend yield of 3.9%. The ex-dividend date is Wednesday, September 9th. HP’s dividend payout ratio is currently 44.28%.
More HP News
Here are the key news stories impacting HP this week:
- Positive Sentiment: HP reported fiscal Q3 revenue of $15.7 billion, up 12.5% year over year and above analyst expectations. Non-GAAP EPS was $0.83, exceeding consensus estimates, while operating cash flow reached $1.7 billion and free cash flow totaled $1.6 billion. HP Inc. Reports Fiscal 2026 Third Quarter Results
- Positive Sentiment: Management raised its fiscal 2026 EPS outlook to $3.19-$3.29, above the roughly $3.02 consensus, and forecast fourth-quarter EPS of $0.69-$0.79, also ahead of expectations. Price increases on premium and AI-enabled PCs, along with expected tariff refunds, are expected to offset higher memory costs. HP forecasts strong fourth-quarter profit on price hikes, US tariff refunds
- Neutral Sentiment: Personal Systems revenue rose 18% to $11.8 billion, but Printing revenue fell 2% to $3.9 billion. HP also signed a multiyear Wi-Fi patent cross-licensing agreement with Huawei, which could support technology access but may attract additional scrutiny because Huawei is on the U.S. Entity List. HP partners with U.S.-blacklisted Huawei for licensing the Chinese company’s WiFi tech
- Negative Sentiment: GAAP net income fell to $661 million from $763 million, and GAAP EPS declined to $0.71 from $0.80. Results also included a $0.11-per-share benefit from tariff refunds, while non-GAAP operating margin contracted to 6.5% from 7.1%. Investors appeared to view the earnings beat and raised guidance as insufficient relative to expectations, triggering a sharp post-earnings selloff. HP shares tumble despite earnings beat, raised guidance
Insiders Place Their Bets
In other HP news, insider David P. Mcquarrie sold 21,048 shares of HP stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $29.98, for a total value of $631,019.04. Following the transaction, the insider owned 39,580 shares in the company, valued at $1,186,608.40. The trade was a 34.72% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 52,620 shares of company stock valued at $1,478,622 over the last quarter. Company insiders own 0.18% of the company’s stock.
About HP
HP Inc is an American multinational information technology company that designs, manufactures and sells personal computing devices, printers and related supplies and services. Its product portfolio spans consumer and commercial notebooks and desktops, workstations, displays and accessories, as well as an extensive line of printing hardware that includes home, office and production printers. HP also provides consumables such as ink and toner, managed print services, device deployment and lifecycle support, and software for device and print management.
Founded from the original Hewlett‑Packard Company, HP Inc became a separately traded public company in 2015 following a corporate split that created Hewlett Packard Enterprise to focus on enterprise hardware and services.
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