Tag Archives: HPE

Hewlett Packard Enterprise (HPE) Rating Increased to Positive at OTR Global

OTR Global upgraded shares of Hewlett Packard Enterprise (NYSE:HPE) to a positive rating in a research report released on Thursday morning.

Several other equities analysts have also recently weighed in on HPE. ValuEngine cut Hewlett Packard Enterprise from a buy rating to a hold rating in a research note on Wednesday, May 2nd. Zacks Investment Research cut Hewlett Packard Enterprise from a buy rating to a hold rating in a research note on Monday, April 30th. UBS reaffirmed a neutral rating and set a $19.00 target price (up previously from $15.00) on shares of Hewlett Packard Enterprise in a research note on Friday, February 23rd. Loop Capital raised Hewlett Packard Enterprise from a hold rating to a buy rating in a research note on Tuesday, February 20th. Finally, BMO Capital Markets lifted their target price on Hewlett Packard Enterprise from $14.00 to $19.00 and gave the company a market perform rating in a research note on Friday, February 23rd. Two analysts have rated the stock with a sell rating, nineteen have issued a hold rating and ten have assigned a buy rating to the company’s stock. Hewlett Packard Enterprise currently has a consensus rating of Hold and a consensus price target of $17.38.

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Hewlett Packard Enterprise traded down $0.09, hitting $17.58, on Thursday, according to MarketBeat Ratings. 90,271 shares of the company were exchanged, compared to its average volume of 12,232,150. The company has a current ratio of 1.06, a quick ratio of 0.93 and a debt-to-equity ratio of 0.42. The company has a market cap of $27.63 billion, a PE ratio of 18.31, a PEG ratio of 1.48 and a beta of 1.87. Hewlett Packard Enterprise has a twelve month low of $17.38 and a twelve month high of $17.44.

Hewlett Packard Enterprise (NYSE:HPE) last posted its quarterly earnings data on Thursday, February 22nd. The technology company reported $0.34 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.22 by $0.12. Hewlett Packard Enterprise had a return on equity of 7.40% and a net margin of 4.52%. The firm had revenue of $7.70 billion for the quarter, compared to the consensus estimate of $7.07 billion. During the same quarter in the previous year, the company earned $0.45 EPS. The business’s revenue for the quarter was up 11.6% compared to the same quarter last year. research analysts forecast that Hewlett Packard Enterprise will post 1.4 EPS for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 4th. Investors of record on Wednesday, June 13th will be paid a $0.1125 dividend. This is a boost from Hewlett Packard Enterprise’s previous quarterly dividend of $0.08. The ex-dividend date is Tuesday, June 12th. This represents a $0.45 annualized dividend and a dividend yield of 2.56%. Hewlett Packard Enterprise’s payout ratio is presently 31.25%.

Hewlett Packard Enterprise announced that its Board of Directors has approved a stock buyback plan on Thursday, February 22nd that permits the company to repurchase $5.50 billion in shares. This repurchase authorization permits the technology company to buy shares of its stock through open market purchases. Shares repurchase plans are generally an indication that the company’s board believes its stock is undervalued.

In related news, insider Keerti Melkote sold 87,113 shares of the business’s stock in a transaction that occurred on Thursday, March 15th. The stock was sold at an average price of $18.87, for a total value of $1,643,822.31. Following the completion of the sale, the insider now directly owns 87,113 shares in the company, valued at approximately $1,643,822.31. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Philip Davis sold 16,405 shares of the business’s stock in a transaction that occurred on Tuesday, February 27th. The stock was sold at an average price of $18.51, for a total value of $303,656.55. Following the completion of the sale, the insider now owns 5,665 shares of the company’s stock, valued at $104,859.15. The disclosure for this sale can be found here. In the last three months, insiders sold 7,370,096 shares of company stock valued at $131,431,749. 1.18% of the stock is currently owned by company insiders.

A number of institutional investors and hedge funds have recently bought and sold shares of HPE. Spectrum Financial Alliance Ltd LLC acquired a new stake in Hewlett Packard Enterprise in the 1st quarter worth approximately $121,000. Highlander Capital Management LLC acquired a new stake in Hewlett Packard Enterprise in the 1st quarter worth approximately $148,000. Clear Harbor Asset Management LLC acquired a new stake in Hewlett Packard Enterprise in the 4th quarter worth approximately $158,000. Empirical Financial Services LLC acquired a new stake in Hewlett Packard Enterprise in the 4th quarter worth approximately $159,000. Finally, Wade G W & Inc. acquired a new stake in Hewlett Packard Enterprise in the 1st quarter worth approximately $187,000. Hedge funds and other institutional investors own 81.85% of the company’s stock.

About Hewlett Packard Enterprise

Hewlett Packard Enterprise Company provides technology solutions to business and public sector enterprises. It operates through Enterprise Group, Financial Services, and Corporate Investments segments. The Enterprise Group segment offers industry standard servers and mission-critical servers to address the array of its customers' computing needs; converged storage solutions, including 3PAR StoreServ, StoreOnce, and StoreVirtual products, as well as traditional storage solutions, such as tape, storage networking, and legacy external disk products for enterprise and small- and medium-size business; software-defined switches, routers, wireless local area network equipment, network virtualization equipment, security software, location-based services, and network management products; and data center care, proactive care, and technology consulting services, as well as Aruba Services, and communications and media solutions.

Analyst Recommendations for Hewlett Packard Enterprise (NYSE:HPE)

Hewlett Packard Enterprise (HPE) Rating Increased to Positive at OTR Global

OTR Global upgraded shares of Hewlett Packard Enterprise (NYSE:HPE) to a positive rating in a research report released on Thursday morning.

Several other equities analysts have also recently weighed in on HPE. ValuEngine cut Hewlett Packard Enterprise from a buy rating to a hold rating in a research note on Wednesday, May 2nd. Zacks Investment Research cut Hewlett Packard Enterprise from a buy rating to a hold rating in a research note on Monday, April 30th. UBS reaffirmed a neutral rating and set a $19.00 target price (up previously from $15.00) on shares of Hewlett Packard Enterprise in a research note on Friday, February 23rd. Loop Capital raised Hewlett Packard Enterprise from a hold rating to a buy rating in a research note on Tuesday, February 20th. Finally, BMO Capital Markets lifted their target price on Hewlett Packard Enterprise from $14.00 to $19.00 and gave the company a market perform rating in a research note on Friday, February 23rd. Two analysts have rated the stock with a sell rating, nineteen have issued a hold rating and ten have assigned a buy rating to the company’s stock. Hewlett Packard Enterprise currently has a consensus rating of Hold and a consensus price target of $17.38.

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Hewlett Packard Enterprise traded down $0.09, hitting $17.58, on Thursday, according to MarketBeat Ratings. 90,271 shares of the company were exchanged, compared to its average volume of 12,232,150. The company has a current ratio of 1.06, a quick ratio of 0.93 and a debt-to-equity ratio of 0.42. The company has a market cap of $27.63 billion, a PE ratio of 18.31, a PEG ratio of 1.48 and a beta of 1.87. Hewlett Packard Enterprise has a twelve month low of $17.38 and a twelve month high of $17.44.

Hewlett Packard Enterprise (NYSE:HPE) last posted its quarterly earnings data on Thursday, February 22nd. The technology company reported $0.34 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.22 by $0.12. Hewlett Packard Enterprise had a return on equity of 7.40% and a net margin of 4.52%. The firm had revenue of $7.70 billion for the quarter, compared to the consensus estimate of $7.07 billion. During the same quarter in the previous year, the company earned $0.45 EPS. The business’s revenue for the quarter was up 11.6% compared to the same quarter last year. research analysts forecast that Hewlett Packard Enterprise will post 1.4 EPS for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 4th. Investors of record on Wednesday, June 13th will be paid a $0.1125 dividend. This is a boost from Hewlett Packard Enterprise’s previous quarterly dividend of $0.08. The ex-dividend date is Tuesday, June 12th. This represents a $0.45 annualized dividend and a dividend yield of 2.56%. Hewlett Packard Enterprise’s payout ratio is presently 31.25%.

Hewlett Packard Enterprise announced that its Board of Directors has approved a stock buyback plan on Thursday, February 22nd that permits the company to repurchase $5.50 billion in shares. This repurchase authorization permits the technology company to buy shares of its stock through open market purchases. Shares repurchase plans are generally an indication that the company’s board believes its stock is undervalued.

In related news, insider Keerti Melkote sold 87,113 shares of the business’s stock in a transaction that occurred on Thursday, March 15th. The stock was sold at an average price of $18.87, for a total value of $1,643,822.31. Following the completion of the sale, the insider now directly owns 87,113 shares in the company, valued at approximately $1,643,822.31. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Philip Davis sold 16,405 shares of the business’s stock in a transaction that occurred on Tuesday, February 27th. The stock was sold at an average price of $18.51, for a total value of $303,656.55. Following the completion of the sale, the insider now owns 5,665 shares of the company’s stock, valued at $104,859.15. The disclosure for this sale can be found here. In the last three months, insiders sold 7,370,096 shares of company stock valued at $131,431,749. 1.18% of the stock is currently owned by company insiders.

A number of institutional investors and hedge funds have recently bought and sold shares of HPE. Spectrum Financial Alliance Ltd LLC acquired a new stake in Hewlett Packard Enterprise in the 1st quarter worth approximately $121,000. Highlander Capital Management LLC acquired a new stake in Hewlett Packard Enterprise in the 1st quarter worth approximately $148,000. Clear Harbor Asset Management LLC acquired a new stake in Hewlett Packard Enterprise in the 4th quarter worth approximately $158,000. Empirical Financial Services LLC acquired a new stake in Hewlett Packard Enterprise in the 4th quarter worth approximately $159,000. Finally, Wade G W & Inc. acquired a new stake in Hewlett Packard Enterprise in the 1st quarter worth approximately $187,000. Hedge funds and other institutional investors own 81.85% of the company’s stock.

About Hewlett Packard Enterprise

Hewlett Packard Enterprise Company provides technology solutions to business and public sector enterprises. It operates through Enterprise Group, Financial Services, and Corporate Investments segments. The Enterprise Group segment offers industry standard servers and mission-critical servers to address the array of its customers' computing needs; converged storage solutions, including 3PAR StoreServ, StoreOnce, and StoreVirtual products, as well as traditional storage solutions, such as tape, storage networking, and legacy external disk products for enterprise and small- and medium-size business; software-defined switches, routers, wireless local area network equipment, network virtualization equipment, security software, location-based services, and network management products; and data center care, proactive care, and technology consulting services, as well as Aruba Services, and communications and media solutions.

Analyst Recommendations for Hewlett Packard Enterprise (NYSE:HPE)

Could Micron Technology, Inc. Almost Double to $100?

Looking for high growth and a dirt-cheap valuation? Plenty of companies fit the former or the latter, many don’t fit either and a rare few can claim both descriptions. Micron Technology, Inc. (NASDAQ:MU) is one of the latter. Despite this, however, MU stock hasn’t been as much of a no-brainer trade as some investors may think.

Put simply, Micron operates in a boom-bust industry selling DRAM and NAND memory. Meaning that when times are good and the supply/demand situation is in Micron’s favor, business is booming. When the industry becomes saturated in supply, though, companies like Micron suffer. So do those who produce equipment for companies like Micron, such as Applied Materials, Inc. (NASDAQ:AMAT) and Lam Research Corporation (NASDAQ:LRCX).

In this particular case, industry insiders and DRAM/NAND buyers expected pricing to fall in the second half of 2017. Here we are entering the second half of 2018 and pricing for DRAM is still holding up.

Admittedly, NAND has seen some pressure, but because demand for memory continues to climb, companies aren’t taking their foot off the gas — they keep buying NAND and DRAM left and right to keep up with enterprise and consumer demand. Likewise, Micron, Samsung Electronics Co (OTCMKTS:SSNLF) and other producers are staying disciplined and not allowing a glut of supply to form.

So Why Don’t People Like MU Stock?

Trading at a paltry 4.9 times this year’s earnings, it’s clear investors are still skeptical. They still think the “bust” part of the cycle is coming. Eventually, they’ll be right and MU stock will suffer. But it’s not happening right now and it will depend on how well Micron can handle 2019.

For this year, analysts expect revenue to grow 44% to $29.3 billion. On the earnings front, they are looking for growth of 121%.

In February, expectations “only” called for 40% sales growth and 102% earnings growth.  A month before that, analysts were looking for 36% sales growth and sub-100% earnings growth. Finally, in December, analysts were only expect earnings growth of 60%. See how much they keep doubting Micron?

And remember, we’re talking about a stock trading at sub-5 times earnings.

Estimates for 2019 are on the rise as well. Sales growth is now expected to be positive, rather than negative, albeit with just 3.7% growth from 2018. On the earnings front, analysts still expect profit to fall about 10% next year, but keep in mind estimates for 2019 have gone from $8.51 per share 90 days ago to $9.85 per share at present. Who’s to say those aren’t too low as well?

MU can be volatile, but the point is all the same. Until there’s a breakdown in NAND and DRAM prices, we shouldn’t bet against MU stock at this valuation. The analysts are falling in line, too. The other day, Stifel Nicolaus analysts hit MU with a $101 price target, implying more than 80% upside. The average target sits all the way up at $74, implying more than 32% upside. In all, there are four targets of $100 or more.

So a run to triple digits isn’t as crazy as it seems.

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Trading Micron Stock

Not long ago, we took a look around the market to see what executives were saying about pricing. Here’s just two excerpts that we found:

“We continue to see some nominal increases in DRAM…So we factor in our plans the elevated DRAM for the remainder of the year.” — Antonio Neri CEO at Hewlett Packard Enterprise Co (NYSE:HPE).

“We saw industry-wide increases in component costs again in Q1, driven primarily by DRAM, which continued to put pressure on margins. We now expect to see increased component costs throughout FY 2018.” — Catherine A. Lesjak, CFO at HP Inc (NYSE:HPQ).

That bodes quite well for MU stock and it’s one reason that I’ve stayed bullish on it all through 2017 and so far into 2018. In March, things were looking up, as Micron stock exploded through the $50 mark and quickly ran over $60 per share.

chart of MU stock breakout
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This proved to be too far too fast, though, and shares promptly pulled back to $46 earlier this month. If MU stock can stay above $55, it can set up shares to retest the highs. It helps that momentum via the MACD favors the bulls and that the stock isn’t overbought via the RSI (both shown on the chart with orange circles).

Short-term bulls may want to use the 50-day moving average or even $55 as their stop-loss. Long-term bulls should consider buying Micron stock on pullbacks to the 150-day moving average. I seldom use this average, but it seems to work for MU.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforemen