HP Sees Surge in Options Trading Amid Analyst Downgrades

HP Inc. (NYSE:HPQ) experienced a significant uptick in options trading on Monday, with investors purchasing a total of 25,543 put options. This marks an increase of 61% compared to the typical volume of 15,848 put options seen in previous trading sessions. Such a shift may reflect investor sentiment as several brokerages recently revised their ratings and price targets for the company.

Analyst Ratings Shift

In the wake of these unusual trading patterns, multiple financial institutions have altered their outlook on HP. Citigroup downgraded its price target for HP from $29.00 to $27.00, maintaining a “neutral” rating in a research report issued on November 12. Similarly, Bank of America lowered its target price from $29.00 to $26.00 while also adopting a “neutral” stance.

On the other hand, HSBC Global Research upgraded HP from a “hold” to a “strong buy” rating on October 14. In a contrasting move, Zacks Research raised HP from a “strong sell” to a “hold” rating on August 19. Barclays also reduced its price target from $28.00 to $27.00 while assigning an “equal weight” rating on August 28.

Currently, one analyst has rated HP with a “strong buy,” one has given it a “buy,” thirteen analysts issued a “hold” rating, and two assigned a “sell” rating. According to data from MarketBeat, the average rating for HP is “hold,” with an average target price of $27.67.

Recent Earnings Performance

HP’s stock has risen by 1.9% following its latest quarterly earnings report announced on August 27. The company reported earnings per share (EPS) of $0.75, aligning with analyst expectations. Revenue for the quarter reached $13.93 billion, exceeding the forecast of $13.69 billion. Despite a year-over-year revenue increase of 3.1%, HP’s net margin stood at 4.83%, and it faced a negative return on equity of 262.03%. Looking ahead, HP has set its guidance for Q4 2025 EPS between $0.870 and $0.970. Analysts project an overall EPS of $3.56 for the current year.

Insider activity has also garnered attention, with Anneliese Olson, a company insider, selling 18,154 shares on October 29 at an average price of $27.88, totaling approximately $506,133.52. Following this transaction, Olson’s ownership dropped to just 169 shares. Moreover, CEO Enrique Lores sold 34,282 shares on September 29 for around $920,471.70, resulting in a drastic reduction of his holdings to merely 3 shares.

Institutional Investor Activity

Recent adjustments in hedge fund positions reflect a broader institutional interest in HP. CIBC Private Wealth Group LLC increased its holdings by 0.9% during the third quarter, now owning 50,952 shares worth approximately $1.39 million after acquiring an additional 470 shares. Meanwhile, CIBC Bancorp USA Inc. entered a new position valued at about $3.53 million during the same period.

Other notable changes include Achmea Investment Management B.V., which grew its stake by 4.4% to 799,355 shares, valued at approximately $21.77 million. Additional investments included First Affirmative Financial Network and Caerus Investment Advisors LLC, both acquiring new stakes valued at around $230,000 and $377,000, respectively. Overall, institutional investors currently hold approximately 77.53% of HP’s stock.

HP Inc. continues to navigate a complex market landscape as it provides a wide range of products and services to consumers and businesses globally, including sectors such as government, health, and education. As the company adapts to changing market conditions, the reactions from analysts and investors will play a crucial role in shaping its future trajectory.