Stock Traders Purchase Large Volume of Call Options on HP (NYSE:HPQ)

HP Inc. (NYSE:HPQ) was the recipient of some unusual options trading on Tuesday. Traders acquired 110,665 call options on the company. This represents an increase of 234% compared to the average daily volume of 33,095 call options.

HP Stock Performance

HPQ traded down $1.49 during trading hours on Tuesday, reaching $31.15. The company’s stock had a trading volume of 15,565,889 shares, compared to its average volume of 18,338,771. HP has a 52 week low of $17.56 and a 52 week high of $32.78. The company’s 50-day moving average is $27.41 and its 200-day moving average is $23.31. The firm has a market cap of $28.09 billion, a PE ratio of 11.89, a price-to-earnings-growth ratio of 1.70 and a beta of 1.18.

HP (NYSE:HPQ) last announced its quarterly earnings results on Wednesday, August 26th. The computer maker reported $0.83 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.66 by $0.17. HP had a negative return on equity of 947.78% and a net margin of 4.14%.The business had revenue of $15.68 billion during the quarter, compared to the consensus estimate of $14.44 billion. During the same quarter last year, the firm posted $0.75 EPS. The company’s quarterly revenue was up 12.5% on a year-over-year basis. HP has set its FY 2026 guidance at 3.190-3.290 EPS and its Q4 2026 guidance at 0.690-0.790 EPS. Equities analysts anticipate that HP will post 3.23 earnings per share for the current fiscal year.

HP Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 7th. Stockholders of record on Wednesday, September 9th will be paid a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a dividend yield of 3.9%. The ex-dividend date is Wednesday, September 9th. HP’s dividend payout ratio (DPR) is currently 45.80%.

Analyst Ratings Changes

A number of brokerages recently weighed in on HPQ. Wall Street Zen upgraded shares of HP from a “hold” rating to a “buy” rating in a report on Saturday, August 22nd. Bank of America reiterated an “underperform” rating on shares of HP in a research note on Thursday, August 27th. Morgan Stanley decreased their price objective on shares of HP from $19.00 to $17.00 and set an “underweight” rating for the company in a research report on Monday, August 24th. Sanford C. Bernstein restated a “market perform” rating and set a $32.00 price objective on shares of HP in a research note on Thursday, August 27th. Finally, Wells Fargo & Company upped their target price on shares of HP from $18.00 to $20.00 and gave the company an “underweight” rating in a report on Thursday, May 28th. Two analysts have rated the stock with a Strong Buy rating, eight have given a Hold rating and five have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, HP presently has a consensus rating of “Reduce” and an average target price of $25.17.

Insiders Place Their Bets

In other HP news, insider David McQuarrie sold 21,048 shares of the business’s stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $29.98, for a total transaction of $631,019.04. Following the transaction, the insider owned 39,580 shares of the company’s stock, valued at $1,186,608.40. The trade was a 34.72% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 52,620 shares of company stock valued at $1,478,622 in the last ninety days. 0.18% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. SHP Wealth Management bought a new stake in shares of HP during the fourth quarter worth approximately $26,000. Union Savings Bank bought a new position in shares of HP during the fourth quarter worth approximately $28,000. Aberdeen Wealth Management LLC acquired a new stake in HP during the 2nd quarter worth approximately $29,000. DV Equities LLC bought a new stake in HP in the 4th quarter valued at $29,000. Finally, Fideuram Intesa Sanpaolo Private Banking S.P.A. acquired a new position in HP in the 4th quarter valued at $32,000. Institutional investors and hedge funds own 77.53% of the company’s stock.

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.