Fisher Funds Management LTD has significantly expanded its investment portfolio by acquiring a new stake in Hewlett Packard Enterprise Company (NYSE:HPE), purchasing 53,694 shares valued at approximately $1.3 million. This move was disclosed in the firm’s recent 13F filing with the Securities and Exchange Commission, marking a strategic addition to Fisher’s holdings during the third quarter of 2023.
This acquisition comes amid a wave of activity from other institutional investors. TFC Financial Management Inc. increased its stake in Hewlett Packard Enterprise by an impressive 2,694.4%, now owning 1,006 shares worth about $25,000. Similarly, CVA Family Office LLC boosted its position by 126.7%, acquiring 1,437 shares valued at $29,000. Hantz Financial Services Inc. also raised its holdings by 74.4%, now holding 1,611 shares worth $33,000. Hilltop National Bank entered the fray with a new stake valued at about $35,000. Collectively, hedge funds and institutional investors own approximately 80.78% of Hewlett Packard Enterprise’s stock.
Analysts Adjust Ratings and Price Targets
Several analysts have recently revised their ratings and price targets for Hewlett Packard Enterprise. UBS Group raised its price objective from $23.00 to $25.00, maintaining a “neutral” rating. Barclays also increased its price target from $26.00 to $27.00, assigning an “overweight” rating. In contrast, Morgan Stanley adjusted its price objective down to $25.00, from a previous $28.00, while reaffirming an “equal weight” rating.
Analysts remain generally optimistic about the company, with one investment analyst giving a “Strong Buy” rating, eight analysts assigning a “Buy” rating, and thirteen others recommending a “Hold.” Currently, the stock has a consensus rating of “Hold” with a consensus price target of $25.53, according to MarketBeat.com.
Recent Insider Transactions and Stock Performance
In other news, insider trading activity has also been noteworthy. Senior Vice President Kirt P. Karros sold 36,460 shares on December 24, 2023, for an estimated total of $897,280.60. Following this transaction, Karros holds 18,785 shares valued at approximately $462,298.85, representing a 66.00% decrease in ownership. Executive Vice President Maeve C. Culloty similarly sold 35,958 shares on December 11, 2023, for about $886,724.28. Over the last quarter, insiders have sold a total of 585,537 shares worth $14,255,864.
As of Tuesday, shares of Hewlett Packard Enterprise opened at $21.45. The company holds a market capitalization of $28.63 billion and has a price-to-earnings (P/E) ratio of -357.44. Its stock performance has fluctuated within a 52-week range of $11.97 to $26.44. The firm’s fifty-day moving average stands at $22.92, while the 200-day average is $22.84.
Recently, Hewlett Packard Enterprise reported quarterly earnings on December 4, 2023, revealing earnings per share of $0.62, which exceeded analysts’ expectations of $0.59 by $0.03. The company generated $9.68 billion in revenue for the quarter, although this fell short of the expected $9.91 billion. Compared to the same quarter last year, revenue increased by 14.7%. For the fiscal year 2026, Hewlett Packard Enterprise has set guidance for earnings per share between $2.25 and $2.45, with first quarter guidance between $0.57 and $0.61.
Dividend Increase and Future Prospects
In a positive development for shareholders, the company announced a quarterly dividend payment of $0.1425 per share, which was distributed on January 16, 2024. This marks an increase from the previous quarterly dividend of $0.13, resulting in an annualized dividend of $0.57 and a yield of 2.7%. The dividend’s ex-dividend date was December 19, 2023.
Hewlett Packard Enterprise is positioned as a key player in the enterprise technology sector, focusing on IT infrastructure, software, and services tailored for business and government needs. The company’s offerings include servers, storage, networking, and associated software, alongside consulting and support services aimed at modernizing enterprise IT environments. A significant emphasis for Hewlett Packard Enterprise lies in hybrid cloud solutions and consumption-based IT, which are expected to drive growth in the coming years.
