SCS Capital opens an $18M stake in Hewlett Packard Enterprise as stock nears a 52-week high
What's the deal? SCS Capital ManagementDealroom has a profile for this one. Try Dealroom → bought a new position in Hewlett Packard EnterpriseDealroom has a profile for this one. Try Dealroom → (NYSE: HPE) during the second quarter, according to Holdings Channel.com. The firm acquired 397,972 shares valued at roughly $17,998,000.
What does Hewlett Packard Enterprise do? The company sells enterprise technology, including servers, storage, and networking hardware and services. Its stock opened at $58.79 on Friday, near a 52-week high of $64.25 and well above its 52-week low of $19.84.
Why now? Hewlett Packard Enterprise beat expectations in its most recent earnings, reported June 1. It posted earnings of $0.79 per share against a $0.54 consensus and revenue of $10.68 billion, above the $9.78 billion analysts expected.
Who else is in? Institutional investors own 80.78% of Hewlett Packard Enterprise. Elliott Investment ManagementDealroom has a profile for this one. Try Dealroom → raised its stake 47.2% in the first quarter to 27,421,735 shares worth $652,912,000, while Capital World InvestorsDealroom has a profile for this one. Try Dealroom → and Barrow HanleyDealroom has a profile for this one. Try Dealroom → opened new positions worth about $901,751,000 and $433,537,000 respectively.
What are analysts saying? The stock carries an average "Moderate Buy" rating and a $69.80 price target, per MarketBeat.com. Eleven analysts rate it Buy and six rate it Hold; TruistDealroom has a profile for this one. Try Dealroom → lifted its target to $69.00 from $31.00, while Zacks ResearchDealroom has a profile for this one. Try Dealroom → downgraded its rating to "hold" in August.
What could go wrong? Hewlett Packard Enterprise trades at a P/E of 54.94, a rich multiple that leaves little room for disappointment. Insiders hold just 0.44% of shares, and SVP Kirt P. Karros sold 18,785 shares in June at $48.50 apiece under a pre-arranged trading plan.
The signal: With the shares up sharply from their 52-week low and a $77.85 billion market cap, Hewlett Packard Enterprise has drawn heavy institutional buying — a sign that large investors see continued upside in enterprise infrastructure demand.
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