HP (NYSE:HPQ) Given Underperform Rating at Bank of America

Bank of America restated their underperform rating on shares of HP (NYSE:HPQ) in a research report report published on Tuesday morning, MarketBeat.com reports. The firm currently has a $20.00 target price on the computer maker’s stock, down from their previous target price of $26.00.

A number of other analysts have also weighed in on HPQ. Sanford C. Bernstein reiterated a “market perform” rating on shares of HP in a research note on Monday, December 1st. UBS Group set a $24.00 price target on shares of HP in a research note on Wednesday, November 26th. The Goldman Sachs Group lowered shares of HP from a “neutral” rating to a “sell” rating and set a $21.00 price objective for the company. in a report on Tuesday, January 13th. HSBC set a $30.00 target price on shares of HP and gave the stock a “buy” rating in a research note on Tuesday, October 14th. Finally, TD Cowen decreased their price target on shares of HP from $28.00 to $26.00 and set a “hold” rating for the company in a research note on Wednesday, November 26th. Two equities research analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating, ten have assigned a Hold rating and six have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Reduce” and an average target price of $24.31.

HP Stock Down 4.0%

Shares of HP stock opened at $19.03 on Tuesday. HP has a twelve month low of $18.32 and a twelve month high of $35.28. The company’s 50 day moving average is $22.39 and its 200 day moving average is $25.17. The company has a market cap of $17.46 billion, a price-to-earnings ratio of 7.18, a price-to-earnings-growth ratio of 3.68 and a beta of 1.21.

HP (NYSE:HPQ) last announced its earnings results on Tuesday, November 25th. The computer maker reported $0.93 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.91 by $0.02. The business had revenue of $14.64 billion for the quarter, compared to analysts’ expectations of $14.50 billion. HP had a negative return on equity of 330.68% and a net margin of 4.57%.The business’s revenue for the quarter was up 4.2% on a year-over-year basis. During the same period last year, the firm posted $0.93 earnings per share. HP has set its FY 2026 guidance at 2.900-3.200 EPS and its Q1 2026 guidance at 0.730-0.810 EPS. Sell-side analysts expect that HP will post 3.56 EPS for the current fiscal year.

HP Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Wednesday, March 11th will be given a $0.30 dividend. The ex-dividend date of this dividend is Wednesday, March 11th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 6.3%. HP’s payout ratio is presently 45.28%.

Insider Activity at HP

In other news, CEO Enrique Lores sold 41,922 shares of the company’s stock in a transaction on Friday, December 5th. The stock was sold at an average price of $26.00, for a total transaction of $1,089,972.00. Following the transaction, the chief executive officer directly owned 141,456 shares of the company’s stock, valued at approximately $3,677,856. This represents a 22.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Ketan M. Patel sold 33,321 shares of the stock in a transaction on Friday, December 26th. The shares were sold at an average price of $23.19, for a total value of $772,713.99. Following the sale, the insider owned 34,572 shares of the company’s stock, valued at approximately $801,724.68. This represents a 49.08% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 91,969 shares of company stock valued at $2,277,993 over the last 90 days. Insiders own 0.38% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its stake in shares of HP by 1.9% during the fourth quarter. Vanguard Group Inc. now owns 132,094,388 shares of the computer maker’s stock worth $2,943,063,000 after acquiring an additional 2,435,634 shares during the last quarter. State Street Corp boosted its stake in HP by 5.3% in the 3rd quarter. State Street Corp now owns 52,703,639 shares of the computer maker’s stock worth $1,450,245,000 after purchasing an additional 2,651,623 shares in the last quarter. Dodge & Cox grew its position in HP by 4.6% during the 2nd quarter. Dodge & Cox now owns 34,943,498 shares of the computer maker’s stock worth $854,718,000 after purchasing an additional 1,537,945 shares during the last quarter. Geode Capital Management LLC increased its stake in HP by 1.6% during the 2nd quarter. Geode Capital Management LLC now owns 26,187,203 shares of the computer maker’s stock valued at $638,720,000 after purchasing an additional 424,544 shares in the last quarter. Finally, Invesco Ltd. raised its holdings in shares of HP by 15.9% in the second quarter. Invesco Ltd. now owns 13,146,875 shares of the computer maker’s stock worth $321,573,000 after buying an additional 1,806,246 shares during the last quarter. 77.53% of the stock is owned by institutional investors and hedge funds.

Key HP News

Here are the key news stories impacting HP this week:

• Positive Sentiment: AI hardware tailwind and restructuring could support rebound — analysts and commentators argue HP is well‑positioned for an AI PC/edge refresh cycle, and the company is pursuing $1B+ run‑rate savings that should protect margins; the view boosts the case for HP as a high‑yield, value play. The AI in a Box Trade: Hardware Is the Next Boom (HPQ)
• Positive Sentiment: Security partnership extends product moat — HP signed a multi‑year XGuard licensing extension with Karamba Security to harden printers vs. cyberattacks, supporting product differentiation in printing/security offerings. HP and Karamba Security Sign Multi-Year Licensing Agreement to Protect HP’s Printers
• Neutral Sentiment: Investor events: HP scheduled a live webcast for Q1 FY2026 results on Feb 24 — useful for fresh management commentary and Q&A that could move the stock. HP Inc. Announces Live Webcast for Q1 Fiscal 2026 Financial Results on February 24, 2026
• Neutral Sentiment: Investor commentary highlights deep value — bullish writeups note low forward P/E, >6% yield and robust free cash flow, arguing downside may be limited and upside exists if the PC refresh materializes. HP: Priced Too Low With A High Yield
• Negative Sentiment: CEO departure is a primary near‑term catalyst for the selloff — Enrique Lores is leaving to become PayPal’s CEO, creating leadership uncertainty and prompting investor concern about strategy continuity. PayPal hires HP’s Enrique Lores as its new CEO
• Negative Sentiment: Board named Bruce Broussard interim CEO — immediate leadership change raises short‑term execution and messaging risks until a permanent CEO is installed. HP appoints Bruce Broussard as interim CEO
• Negative Sentiment: Analyst pressure: Bank of America reaffirmed an underperform rating and trimmed its target to $20, adding selling pressure and validating some investor caution around near‑term growth/margins. Bank of America reaffirms ‘underperform’ and lowers price target

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.