HP (NYSE:HPQ) Shares Gap Down After Earnings Miss

HP Inc. (NYSE:HPQ)’s share price gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $27.20, but opened at $23.82. HP shares last traded at $25.14, with a volume of 4,830,879 shares trading hands.

The computer maker reported $0.71 earnings per share for the quarter, missing analysts’ consensus estimates of $0.80 by ($0.09). HP had a net margin of 5.18% and a negative return on equity of 253.39%. The firm had revenue of $13.22 billion during the quarter, compared to the consensus estimate of $13.09 billion. During the same quarter in the prior year, the business posted $0.82 earnings per share. The firm’s quarterly revenue was up 3.3% on a year-over-year basis.

HP Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 2nd. Stockholders of record on Wednesday, June 11th will be issued a dividend of $0.2894 per share. This represents a $1.16 annualized dividend and a dividend yield of 4.56%. The ex-dividend date of this dividend is Wednesday, June 11th. HP’s dividend payout ratio (DPR) is 41.37%.

Analyst Ratings Changes

Several equities analysts have recently weighed in on the stock. Morgan Stanley reaffirmed an “equal weight” rating on shares of HP in a report on Wednesday. KGI Securities began coverage on shares of HP in a research report on Thursday. They set a “neutral” rating on the stock. Evercore ISI decreased their target price on shares of HP from $40.00 to $32.00 and set an “outperform” rating on the stock in a research report on Monday, April 28th. Wells Fargo & Company upped their target price on shares of HP from $30.00 to $35.00 and gave the company an “underweight” rating in a research report on Thursday, February 20th. Finally, Bank of America decreased their target price on shares of HP from $35.00 to $33.00 and set a “neutral” rating on the stock in a research report on Wednesday. One equities research analyst has rated the stock with a sell rating, eleven have assigned a hold rating and three have issued a buy rating to the stock. According to data from MarketBeat.com, HP has an average rating of “Hold” and an average price target of $32.50.

Insider Activity at HP

In other news, insider Anneliese Olson sold 21,545 shares of HP stock in a transaction on Thursday, March 27th. The shares were sold at an average price of $28.49, for a total value of $613,817.05. Following the transaction, the insider now directly owns 169 shares of the company’s stock, valued at $4,814.81. The trade was a 99.22% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Stephanie Liebman sold 15,646 shares of HP stock in a transaction on Monday, March 24th. The shares were sold at an average price of $29.00, for a total transaction of $453,734.00. The disclosure for this sale can be found here. 0.38% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On HP

A number of institutional investors have recently modified their holdings of HPQ. WPG Advisers LLC acquired a new position in HP in the 1st quarter valued at $25,000. Synergy Asset Management LLC acquired a new position in HP in the 4th quarter valued at $26,000. Stonebridge Financial Group LLC acquired a new position in HP in the 4th quarter valued at $31,000. Migdal Insurance & Financial Holdings Ltd. acquired a new position in HP in the 1st quarter valued at $35,000. Finally, Marshall & Sterling Wealth Advisors Inc. acquired a new position in HP in the 4th quarter valued at $36,000. 77.53% of the stock is owned by institutional investors and hedge funds.

HP Trading Down 6.7%

The company has a market capitalization of $23.92 billion, a price-to-earnings ratio of 8.94, a PEG ratio of 2.96 and a beta of 1.32. The firm’s 50 day simple moving average is $26.11 and its 200-day simple moving average is $30.87.

About HP

HP Inc provides products, technologies, software, solutions, and services to individual consumers, small- and medium-sized businesses, and large enterprises, including customers in the government, health, and education sectors worldwide. It operates through Personal Systems and Printing segments. The Personal Systems segment offers commercial personal computers (PCs), consumer PCs, workstations, thin clients, commercial tablets and mobility devices, retail point-of-sale systems, displays and other related accessories, software, support, and services for the commercial and consumer markets.