HP Target of Unusually High Options Trading (NYSE:HPQ)

HP Inc. (NYSE:HPQ) was the recipient of unusually large options trading activity on Wednesday. Stock traders acquired 56,561 call options on the stock. This represents an increase of approximately 160% compared to the average volume of 21,734 call options.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. Argus raised shares of HP to a “strong-buy” rating in a report on Tuesday, December 2nd. Zacks Research cut shares of HP from a “hold” rating to a “strong sell” rating in a research report on Friday, November 28th. Evercore set a $22.00 price target on shares of HP in a research note on Thursday, February 19th. JPMorgan Chase & Co. reduced their price objective on HP from $30.00 to $25.00 and set a “neutral” rating for the company in a research report on Wednesday, November 26th. Finally, Sanford C. Bernstein reissued a “market perform” rating on shares of HP in a report on Monday, December 1st. Two analysts have rated the stock with a Strong Buy rating, ten have issued a Hold rating and six have issued a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Reduce” and an average target price of $22.23.

HP News Roundup

Here are the key news stories impacting HP this week:

• Positive Sentiment: Q1 beat — HP posted non‑GAAP EPS of $0.81 (vs. $0.77 consensus) and revenue of $14.44B, powered by a rebound in Personal Systems (PC) sales; the print gives near‑term evidence sales and share repurchases are supporting cash flow. HP Inc. Reports Fiscal 2026 First Quarter Results
• Positive Sentiment: Options flow turned bullish — unusually large activity (≈56,561 calls, ~160% above typical daily call volume) signals speculative or institutional positioning for upside or event‑driven volatility (earnings/guidance reaction or follow‑on analyst activity).
• Neutral Sentiment: Trading context — volume is elevated and the stock sits near its 52‑week low; that raises liquidity and volatility but also makes the name more sensitive to headlines and analyst revisions.
• Neutral Sentiment: Analyst valuation re‑rating underway — several shops are trimming fair value and moving to tighter target ranges as they weigh HP’s cost actions vs. memory cost risk; this is recalibrating expectations rather than providing a clear directional catalyst. Why The HP (HPQ) Story Is Shifting
• Negative Sentiment: Memory cost headwinds — management warned memory chip prices have risen sharply and are squeezing margins; analysts say this materially pressures FY26 EPS and operating margin expectations. HP’s Margin Squeeze Deepens As Memory Costs Surge
• Negative Sentiment: Cautious guidance and regulatory risks — HP pared its outlook toward the low end of prior guidance and cited U.S. trade/regulatory uncertainty, prompting investors to mark down forward expectations. HP warns US trade regulations, memory chip costs to weigh on annual forecasts
• Negative Sentiment: Analyst downgrades and price‑target cuts — multiple firms (Goldman, Barclays, Morgan Stanley, Wells Fargo among others) trimmed targets and moved to underweight/sell stances after the guidance and cost commentary, adding selling pressure and lowering conviction. Analyst price‑target moves (example: Morgan Stanley)
• Negative Sentiment: Shares hit multi‑week/52‑week lows in the wake of management’s warning — the CFO/guidance tone erased some of the earnings beat’s positive impact and prompted profit‑taking. HP Hits 52‑Week Low After CFO’s Warning
• Negative Sentiment: Leadership/news cross‑impact (PayPal appointment) — coverage mentioning Enrique Lores (formerly HP’s executive) moving to PayPal draws attention to HP’s leadership stability; any CEO/exec transition risk could be viewed negatively by investors focused on execution through a cost‑intensive period. PayPal Stock Halted on Stripe Rumor (mentions Enrique Lores)

Insiders Place Their Bets

In other news, insider Anneliese Olson sold 16,726 shares of the stock in a transaction that occurred on Tuesday, December 9th. The stock was sold at an average price of $24.83, for a total transaction of $415,306.58. Following the sale, the insider directly owned 169 shares in the company, valued at approximately $4,196.27. This represents a 99.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Ketan M. Patel sold 33,321 shares of the stock in a transaction on Friday, December 26th. The stock was sold at an average price of $23.19, for a total value of $772,713.99. Following the completion of the sale, the insider directly owned 34,572 shares in the company, valued at $801,724.68. This represents a 49.08% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 91,969 shares of company stock valued at $2,277,993 over the last quarter. Insiders own 0.38% of the company’s stock.

Hedge Funds Weigh In On HP

Hedge funds have recently added to or reduced their stakes in the company. DNB Asset Management AS grew its position in HP by 242.2% in the fourth quarter. DNB Asset Management AS now owns 10,594,630 shares of the computer maker’s stock worth $236,048,000 after acquiring an additional 7,498,202 shares in the last quarter. Norges Bank bought a new stake in HP in the fourth quarter worth $149,309,000. Arrowstreet Capital Limited Partnership boosted its holdings in HP by 186.1% in the third quarter. Arrowstreet Capital Limited Partnership now owns 8,378,723 shares of the computer maker’s stock worth $228,153,000 after purchasing an additional 5,449,691 shares in the last quarter. AQR Capital Management LLC increased its position in HP by 143.4% during the third quarter. AQR Capital Management LLC now owns 9,039,803 shares of the computer maker’s stock worth $244,527,000 after buying an additional 5,325,260 shares during the last quarter. Finally, Renaissance Technologies LLC raised its holdings in HP by 626.6% during the fourth quarter. Renaissance Technologies LLC now owns 4,948,700 shares of the computer maker’s stock valued at $110,257,000 after buying an additional 4,267,600 shares in the last quarter. Institutional investors and hedge funds own 77.53% of the company’s stock.

HP Trading Up 0.0%

NYSE HPQ opened at $18.21 on Thursday. The stock’s 50-day moving average price is $20.48 and its two-hundred day moving average price is $24.46. HP has a 1 year low of $17.56 and a 1 year high of $34.07. The company has a market cap of $16.71 billion, a PE ratio of 6.90, a PEG ratio of 0.29 and a beta of 1.21.

HP (NYSE:HPQ) last announced its earnings results on Tuesday, February 24th. The computer maker reported $0.81 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.77 by $0.04. The company had revenue of $14.44 billion for the quarter, compared to the consensus estimate of $13.87 billion. HP had a net margin of 4.46% and a negative return on equity of 359.21%. The company’s revenue was up 6.9% on a year-over-year basis. During the same period in the previous year, the business earned $0.74 EPS. HP has set its Q2 2026 guidance at 0.700-0.760 EPS. Research analysts forecast that HP will post 3.56 EPS for the current fiscal year.

HP Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Wednesday, March 11th will be paid a dividend of $0.30 per share. 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 6.6%. HP’s dividend payout ratio (DPR) is 45.28%.

HP Company Profile

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.