Morgan Stanley Maintains “Equal Weight” Rating for HPE Stock

Hewlett Packard Enterprise (NYSE:HPE) has received an “equal weight” rating from Morgan Stanley, as confirmed in a note released to investors on September 25, 2023. The investment bank has set a price target of **$25.00** for the technology company, a decrease from its previous target of **$28.00**. This new target implies a potential upside of approximately **9.58%** from HPE’s last closing price.

Several other financial institutions have also recently updated their positions on HPE. Bank of America raised its price objective for the company from **$24.00** to **$25.00**, attributing a “buy” rating in a report issued on September 2, 2023. Meanwhile, Susquehanna Securities adjusted its target price from **$16.00** to **$21.00**, assigning a “neutral” rating on September 4, 2023. Deutsche Bank also increased its target from **$21.00** to **$26.00**, recommending a “buy” rating on July 23, 2023. Wells Fargo & Company similarly lifted its price target from **$22.00** to **$26.00**, maintaining an “equal weight” rating on September 4, 2023. Weiss Ratings reiterated a “hold (c)” rating on October 8, 2023.

According to MarketBeat.com, HPE currently holds a consensus rating of “Hold” with a target price averaging **$25.24**.

Quarterly Performance Insights

Hewlett Packard Enterprise reported its quarterly earnings on September 3, 2023. The company posted earnings per share (EPS) of **$0.35**, falling short of the consensus estimate of **$0.44** by **$0.09**. Revenue for the quarter reached **$9.14 billion**, exceeding analysts’ expectations of **$8.77 billion**. The company achieved a return on equity of **9.01%** and a net margin of **3.77%**, marking a **19.8%** increase in revenue compared to the same quarter in the previous year. Last year, HPE had an EPS of **$0.50**.

For the fiscal year 2025, HPE has provided guidance of an EPS between **$1.880** and **$1.920**, with estimates for Q4 2025 set at **$0.560** to **$0.600**. Analysts predict that HPE will record an EPS of **$1.85** for the current fiscal year.

Recent Insider Activity and Institutional Investments

In related news, Director **Gary M. Reiner** sold **40,000** shares of HPE on September 15, 2023, at an average price of **$24.58**, resulting in a total transaction value of **$983,200**. Post-transaction, Reiner holds **83,869** shares, valued at approximately **$2,061,500**, reflecting a **32.29%** reduction in his ownership. This sale has been disclosed in a legal filing with the SEC.

Additionally, **Maeve C. Culloty**, Executive Vice President, sold **3,738** shares on September 23, 2023, at an average price of **$25.12**, totaling **$93,898.56**. Over the past three months, insiders have sold **543,738** shares of HPE, amounting to approximately **$12.9 million**. Currently, corporate insiders own **0.36%** of the company’s stock.

Recent activity among institutional investors has also been noteworthy. TFC Financial Management Inc. increased its stake in HPE by **2,694.4%** during the third quarter, now holding **1,006** shares valued at **$25,000**. Other institutional movements include Annis Gardner Whiting Capital Advisors LLC, which boosted its stake by **176.7%** to **1,043** shares, and Clearstead Trust LLC, which raised its holdings by **93.8%** to **1,291** shares.

Institutional investors and hedge funds collectively own approximately **80.78%** of Hewlett Packard Enterprise’s stock.

Hewlett Packard Enterprise continues to provide innovative solutions that empower customers to seamlessly capture, analyze, and act upon data across the globe, operating in various segments including Compute, HPC & AI, Storage, Intelligent Edge, Financial Services, and Corporate Investments and Other.