Zacks Investment Research Upgrades HP (NYSE:HPQ) to Buy

HP (NYSE:HPQ) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Wednesday, reports. The firm presently has a $21.00 target price on the computer maker’s stock. Zacks Investment Research‘s target price points to a potential upside of 6.98% from the company’s current price.

According to Zacks, “HP’s fourth-quarter fiscal 2019 results benefited from growing demand in the Commercial PC market. Increase in sales for commercial customers is a tailwind. Broad-based growth across all products and geographies is helping the company outperform the PC market. HP also witnessed double-digit revenue growth in retail solutions business and gaming as well as services orders in the quarter. Further, stringent cost control is driving margin expansion. The company's improving market share across the PC and Printer businesses makes us optimistic. However, soft consumer market and weakness in the Printing business are negatives. Further, macroeconomic weakness, particularly in Europe, the Middle East and Africa (EMEA), is denting Supplies revenues. Shares of the company have underperformed the industry on a year-to-date basis.”

A number of other analysts have also recently issued reports on HPQ. Barclays lowered their price objective on HP from $21.00 to $20.00 and set an “equal weight” rating on the stock in a research report on Friday, August 23rd. UBS Group cut HP from a “buy” rating to a “neutral” rating and reduced their target price for the stock from $26.00 to $20.00 in a research report on Monday, September 16th. Morgan Stanley lifted their price target on shares of HP from $20.00 to $21.00 and gave the stock an “equal weight” rating in a research note on Wednesday, November 27th. Argus downgraded shares of HP from a “buy” rating to a “hold” rating in a research note on Monday, October 7th. Finally, Sanford C. Bernstein lowered shares of HP from an “outperform” rating to a “market perform” rating and set a $20.00 price target on the stock. in a report on Monday, September 9th. Two research analysts have rated the stock with a sell rating, thirteen have given a hold rating and four have assigned a buy rating to the company. The stock presently has a consensus rating of “Hold” and an average target price of $19.91.

HPQ stock opened at $19.63 on Wednesday. HP has a twelve month low of $15.93 and a twelve month high of $24.17. The company has a market cap of $29.76 billion, a PE ratio of 8.76, a price-to-earnings-growth ratio of 4.09 and a beta of 1.43. The business’s 50-day simple moving average is $18.70 and its 200 day simple moving average is $19.28.

HP (NYSE:HPQ) last posted its quarterly earnings results on Tuesday, November 26th. The computer maker reported $0.60 EPS for the quarter, beating the consensus estimate of $0.58 by $0.02. HP had a negative return on equity of 241.43% and a net margin of 5.36%. The firm had revenue of $15.40 billion during the quarter, compared to analysts’ expectations of $15.29 billion. During the same quarter in the prior year, the firm posted $0.54 EPS. The company’s revenue for the quarter was up .2% on a year-over-year basis. Research analysts predict that HP will post 2.27 EPS for the current fiscal year.

In other HP news, insider Christoph Schell sold 60,121 shares of the company’s stock in a transaction on Friday, November 15th. The stock was sold at an average price of $20.17, for a total value of $1,212,640.57. Following the sale, the insider now directly owns 179,029 shares in the company, valued at $3,611,014.93. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.28% of the company’s stock.

Several institutional investors and hedge funds have recently bought and sold shares of HPQ. Rothschild & Co Wealth Management UK Ltd bought a new stake in HP during the 2nd quarter worth about $33,000. Transamerica Financial Advisors Inc. acquired a new stake in HP in the 2nd quarter valued at about $38,000. Coastal Capital Group Inc. bought a new position in shares of HP in the second quarter worth about $39,000. Redhawk Wealth Advisors Inc. bought a new position in shares of HP in the second quarter worth about $41,000. Finally, Berman Capital Advisors LLC raised its stake in shares of HP by 378.6% in the second quarter. Berman Capital Advisors LLC now owns 2,034 shares of the computer maker’s stock worth $42,000 after acquiring an additional 1,609 shares during the last quarter. 83.06% of the stock is currently owned by institutional investors and hedge funds.

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.

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