JPMorgan Chase Cuts HP Price Target to $25 Amid Analyst Adjustments

HP Inc. (NYSE: HPQ) has received a revised price target of $25.00 from analysts at JPMorgan Chase & Co., down from a previous target of $30.00. This adjustment, detailed in a report released on October 25, 2023, suggests a potential upside of approximately 4.78% from the stock’s last closing price. Currently, JPMorgan maintains a “neutral” rating on HP’s shares, reflecting a cautious outlook amid broader market conditions.

Other financial institutions have also reassessed their targets for HP. TD Cowen lowered their price target from $28.00 to $26.00 while maintaining a “hold” rating. Similarly, UBS Group set a target at $24.00, and Barclays cut its estimate from $27.00 to $24.00, assigning an “equal weight” rating. In contrast, HSBC recently established a price target of $30.00 and a “buy” rating, while Evercore ISI reduced its target to $25.00 with an “in-line” rating.

As it stands, HP’s stock has received a mix of ratings from analysts: one has assigned a Strong Buy, one a Buy, fourteen have issued a Hold rating, and two have assigned a Sell rating. According to data from MarketBeat, the consensus rating for HP is currently “Hold,” with an average price target of $25.85.

Recent Earnings Report and Insider Activities

HP released its latest earnings results on November 25, 2023, reporting earnings per share of $0.93. This figure surpassed analysts’ expectations of $0.91 by $0.02. The company achieved a revenue of $14.64 billion, exceeding projections of $14.50 billion and marking a year-over-year increase of 4.2%. Notably, HP’s return on equity stood at -262.03%, with a net margin of 4.83%.

Looking ahead, HP has set its fiscal year 2026 guidance at $2.90 to $3.20 earnings per share and projects $0.73 to $0.81 for the first quarter of 2026. Analysts predict that HP will report earnings of $3.56 for the current fiscal year.

In other developments, CEO Enrique Lores sold 34,282 shares of HP on September 29, 2023, at an average price of $26.85, totaling approximately $920,471.70. Following this transaction, Lores retained only three shares, reflecting a significant decrease in his ownership. The sale was officially disclosed to the Securities and Exchange Commission.

Similarly, insider Anneliese Olson sold 18,154 shares on October 29, 2023, at an average price of $27.88, amounting to around $506,133.52. Olson now holds 169 shares, representing a substantial reduction in her stake as well.

Institutional Investor Trends

Recent trends indicate that several hedge funds have adjusted their positions in HP. Avantax Advisory Services Inc. increased its holdings by 17.1%, acquiring an additional 8,358 shares, bringing its total to 57,357 shares valued at $1.59 million. Cetera Investment Advisers raised its position by 14.6%, now owning 165,042 shares worth $4.57 million after purchasing 21,033 new shares.

Additionally, LPL Financial LLC slightly increased its holdings by 0.7%, now owning 418,733 shares valued at $11.60 million. This trend reflects a broader interest among institutional investors, who currently control 77.53% of HP’s stock.

HP Inc. continues to navigate a challenging market landscape, with analysts closely monitoring the company’s performance and investor sentiment. As adjustments to price targets emerge from various financial institutions, the outlook for HP will remain under scrutiny in the coming months.