HP Inc. (NYSE: HPQ) announced its updated earnings guidance for the first quarter of 2026, projecting earnings per share (EPS) between $0.730 and $0.810. This estimate falls slightly below the consensus expectation of $0.770, reflecting the company’s cautious outlook amid shifting market conditions. HP has also revised its full-year guidance for 2026, now targeting an EPS range of $2.900 to $3.200.
Analysts on Wall Street have weighed in on HP’s performance and outlook. In a recent report, Barclays reduced its price target for HP from $28.00 to $27.00, maintaining an “equal weight” rating. Meanwhile, HSBC Global Research upgraded HP from a “hold” to a “strong buy” rating on October 14, 2023. Other analysts have varied in their assessments; one issued a “buy” rating and a $30.00 price target, while the majority assigned a “hold” rating, leading to a consensus of “hold” with an average target price of $27.67, according to data from MarketBeat.com.
The company’s stock performance has been closely monitored, especially following its last quarterly earnings report on November 25, 2023. During this period, HP exceeded analyst expectations with an EPS of $0.93, surpassing the forecast of $0.92. Revenue for the quarter reached $14.64 billion, exceeding estimates of $14.50 billion. Despite this, HP reported a negative return on equity of 262.03% and a net margin of 4.83%.
Insider Transactions and Hedge Fund Activity
Recent insider trading has raised eyebrows within the investment community. CEO Enrique Lores sold 34,282 shares of HP stock on September 29, 2023, at an average price of $26.85, totaling approximately $920,471.70. Following this transaction, Lores retained only three shares, valued at $80.55, marking a significant decrease in his stake. This transaction was disclosed in a filing with the Securities and Exchange Commission.
Additionally, insider Anneliese Olson sold 18,154 shares on October 29, 2023, at an average price of $27.88, amounting to about $506,133.52. After this sale, Olson’s remaining shares totalled 169, valued at approximately $4,711.72. Collectively, corporate insiders own only 0.38% of HP stock.
Hedge funds and institutional investors have also made adjustments to their positions in HP. IHT Wealth Management LLC increased its stake by 3.3% during the second quarter, now holding 12,470 shares valued at $305,000. Similarly, Vident Advisory LLC and Gamco Investors INC. ET AL have also raised their positions by 0.6% and 2.7%, respectively. Currently, hedge funds and institutional investors hold approximately 77.53% of HP’s stock.
As HP navigates these developments, the market will be watching closely to see how the company’s strategies unfold in the coming quarters. HP Inc. continues to provide a range of products and services to various sectors, including government, health, and education, through its Personal Systems and Printing segments.
