HP (NYSE:HPQ) Price Target Cut to $16.00 by Analysts at Morgan Stanley

HP (NYSE:HPQ) had its target price reduced by Morgan Stanley from $18.00 to $16.00 in a research report report published on Wednesday morning,Benzinga reports. They currently have an underweight rating on the computer maker’s stock.

A number of other research analysts have also recently issued reports on HPQ. JPMorgan Chase & Co. decreased their price objective on shares of HP from $30.00 to $25.00 and set a “neutral” rating for the company in a report on Wednesday, November 26th. The Goldman Sachs Group cut shares of HP from a “neutral” rating to a “sell” rating and set a $21.00 price target on the stock. in a research report on Tuesday, January 13th. Bank of America restated an “underperform” rating and issued a $20.00 price objective (down from $26.00) on shares of HP in a research report on Tuesday, February 3rd. Sanford C. Bernstein reaffirmed a “market perform” rating on shares of HP in a research note on Monday, December 1st. Finally, TD Cowen decreased their target price on 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, ten have given a Hold rating and six have given a Sell rating to the stock. Based on data from MarketBeat, HP presently has a consensus rating of “Reduce” and an average target price of $22.23.

HP Stock Up 0.0%

NYSE:HPQ opened at $18.21 on Wednesday. HP has a 12-month low of $17.56 and a 12-month high of $34.07. The stock’s fifty day simple moving average is $20.48 and its 200-day simple moving average is $24.46. The firm has a market capitalization of $16.71 billion, a P/E ratio of 6.90, a P/E/G ratio of 0.29 and a beta of 1.21.

HP (NYSE:HPQ) last released its quarterly earnings data on Tuesday, February 24th. The computer maker reported $0.81 EPS for the quarter, beating analysts’ consensus estimates of $0.77 by $0.04. HP had a negative return on equity of 359.21% and a net margin of 4.46%.The business had revenue of $14.44 billion during the quarter, compared to the consensus estimate of $13.87 billion. During the same quarter in the prior year, the company posted $0.74 earnings per share. The firm’s revenue was up 6.9% on a year-over-year basis. HP has set its Q2 2026 guidance at 0.700-0.760 EPS. As a group, equities research analysts expect that HP will post 3.56 earnings per share for the current year.

HP Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Wednesday, March 11th will be issued a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 6.6%. The ex-dividend date is Wednesday, March 11th. HP’s dividend payout ratio is 45.28%.

Insider Buying and Selling at HP

In related news, insider Ketan M. Patel sold 33,321 shares of HP stock in a transaction that occurred 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 sale, the insider owned 34,572 shares of the company’s stock, valued at approximately $801,724.68. This trade represents a 49.08% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Enrique Lores sold 41,922 shares of the business’s stock in a transaction that occurred on Friday, December 5th. The shares were sold at an average price of $26.00, for a total value of $1,089,972.00. Following the completion of the sale, the chief executive officer owned 141,456 shares in the company, valued at $3,677,856. The trade was a 22.86% decrease in their position. 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 in the last 90 days. 0.38% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the business. Mitsubishi UFJ Trust & Banking Corp grew its holdings in shares of HP by 7.4% in the 3rd quarter. Mitsubishi UFJ Trust & Banking Corp now owns 1,481,211 shares of the computer maker’s stock valued at $40,333,000 after acquiring an additional 101,844 shares in the last quarter. Applied Finance Capital Management LLC boosted its position in HP by 8.4% during the third quarter. Applied Finance Capital Management LLC now owns 1,217,071 shares of the computer maker’s stock valued at $33,139,000 after purchasing an additional 94,494 shares during the last quarter. Maj Invest Holding A S grew its stake in HP by 3.8% in the third quarter. Maj Invest Holding A S now owns 5,754,138 shares of the computer maker’s stock valued at $156,686,000 after purchasing an additional 210,762 shares in the last quarter. Railway Pension Investments Ltd increased its position in shares of HP by 6.1% during the 3rd quarter. Railway Pension Investments Ltd now owns 1,600,015 shares of the computer maker’s stock worth $43,568,000 after purchasing an additional 92,400 shares during the last quarter. Finally, Jones Financial Companies Lllp increased its position in shares of HP by 34.6% during the 3rd quarter. Jones Financial Companies Lllp now owns 400,020 shares of the computer maker’s stock worth $10,685,000 after purchasing an additional 102,825 shares during the last quarter. Institutional investors and hedge funds own 77.53% of the company’s stock.

Key Stories Impacting HP

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)

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.