Morgan Stanley Issues Pessimistic Forecast for HP (NYSE:HPQ) Stock Price

HP (NYSE:HPQ) had its target price decreased by Morgan Stanley from $18.00 to $16.00 in a report released on Wednesday,Benzinga reports. The firm currently has an “underweight” rating on the computer maker’s stock. Morgan Stanley’s target price would indicate a potential downside of 12.24% from the stock’s current price.

A number of other analysts also recently issued reports on the stock. Barclays reissued an “underweight” rating and set a $18.00 price target (down from $24.00) on shares of HP in a report on Friday, January 16th. JPMorgan Chase & Co. dropped their price target on HP from $30.00 to $25.00 and set a “neutral” rating for the company in a research report on Wednesday, November 26th. UBS Group decreased their target price on shares of HP from $26.00 to $20.00 and set a “neutral” rating on the stock in a research note on Thursday, February 19th. Sanford C. Bernstein reissued a “market perform” rating on shares of HP in a research report on Monday, December 1st. Finally, Citigroup lowered their price objective on HP from $22.00 to $20.00 and set a “neutral” rating for the company in a research report on Tuesday, February 17th. Two analysts have rated the stock with a Strong Buy rating, ten have issued a Hold rating and six have assigned a Sell rating to the company. According to MarketBeat.com, HP currently has an average rating of “Reduce” and an average target price of $22.77.

HP Stock Performance

HP stock traded up $0.03 during mid-day trading on Wednesday, reaching $18.23. 18,504,720 shares of the company were exchanged, compared to its average volume of 19,231,160. HP has a 12-month low of $17.56 and a 12-month high of $34.07. The business has a fifty day moving average of $20.61 and a 200 day moving average of $24.50. The firm has a market cap of $16.74 billion, a P/E ratio of 6.93, a PEG ratio of 0.29 and a beta of 1.21.

HP (NYSE:HPQ) last released its quarterly earnings results on Tuesday, February 24th. The computer maker reported $0.81 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.77 by $0.04. The business had revenue of $14.44 billion for the quarter, compared to analyst estimates of $13.87 billion. HP had a net margin of 4.57% and a negative return on equity of 330.68%. The business’s revenue for the quarter was up 6.9% on a year-over-year basis. During the same period in the previous year, the company earned $0.74 earnings per share. HP has set its Q2 2026 guidance at 0.700-0.760 EPS. Sell-side analysts predict that HP will post 3.56 EPS for the current year.

Insider Transactions at HP

In other news, insider Anneliese Olson sold 16,726 shares of the business’s stock in a transaction dated Tuesday, December 9th. The shares were sold at an average price of $24.83, for a total transaction of $415,306.58. Following the transaction, the insider directly owned 169 shares in the company, valued at $4,196.27. The trade was a 99.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Enrique Lores sold 41,922 shares of the stock in a transaction on Friday, December 5th. The stock was sold at an average price of $26.00, for a total value of $1,089,972.00. Following the completion of the transaction, the chief executive officer owned 141,456 shares of the company’s stock, valued at $3,677,856. The trade was a 22.86% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 91,969 shares of company stock worth $2,277,993. Corporate insiders own 0.38% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. Richardson Financial Services Inc. boosted its stake in HP by 14.9% in the 3rd quarter. Richardson Financial Services Inc. now owns 2,827 shares of the computer maker’s stock worth $77,000 after buying an additional 367 shares during the last quarter. Auxano Advisors LLC grew its stake in HP by 4.4% during the third quarter. Auxano Advisors LLC now owns 9,261 shares of the computer maker’s stock worth $252,000 after buying an additional 391 shares during the period. IHT Wealth Management LLC grew its stake in HP by 3.3% during the second quarter. IHT Wealth Management LLC now owns 12,470 shares of the computer maker’s stock worth $305,000 after buying an additional 398 shares during the period. AdvisorNet Financial Inc raised its stake in shares of HP by 42.9% in the 3rd quarter. AdvisorNet Financial Inc now owns 1,349 shares of the computer maker’s stock valued at $37,000 after acquiring an additional 405 shares during the period. Finally, TD Waterhouse Canada Inc. lifted its holdings in shares of HP by 6.4% during the 2nd quarter. TD Waterhouse Canada Inc. now owns 6,799 shares of the computer maker’s stock valued at $173,000 after acquiring an additional 410 shares in the last quarter. 77.53% of the stock is owned by hedge funds and other institutional investors.

More HP News

Here are the key news stories impacting HP this week:

• Positive Sentiment: Q1 results beat expectations — HP reported non‑GAAP EPS of $0.81 and revenue of $14.44B, above Wall Street estimates, driven by solid demand. HP Inc. Reports Fiscal 2026 First Quarter Results
• Positive Sentiment: Top‑line growth led by Personal Systems — Personal Systems revenue rose (double‑digit growth noted by analysts), helping overall revenue expand ~7% year‑over‑year. This demonstrates demand resilience in PCs. HP Inc (HPQ) Q1 2026 Earnings Call Highlights
• Positive Sentiment: Cash returns and improving free cash flow — Management returned ~$0.6B to shareholders and reported positive free cash flow, which supports buybacks/dividend continuity. HP Inc. Reports Fiscal 2026 First Quarter Results
• Neutral Sentiment: Earnings materials and full call transcript are available for deeper read — useful for assessing management commentary on cost actions and AI/PC opportunities. HP Inc. 2026 Q1 – Results – Earnings Call Presentation
• Negative Sentiment: Guidance trimmed and FY outlook weakened — HP set Q2 EPS guidance of $0.70–$0.76 (consensus ~$0.75) and said fiscal‑year results are likely toward the low end of prior ranges, reducing near‑term earnings visibility. HP slides as mixed guidance weighs on strong Q1 results
• Negative Sentiment: Memory‑cost headwinds and trade/regulatory risk — Rising memory chip prices and potential impacts from U.S. trade regulations are expected to inflate costs and compress margins, prompting analysts to cut EPS/target estimates. HP warns US trade regulations, memory chip costs to weigh on annual forecasts
• Negative Sentiment: Analysts lower fair‑value/estimates — Several research notes trimmed target ranges (mid‑$20s to low‑$20s) and flagged that memory pricing and mixed end‑demand could challenge HP’s ability to deliver operating leverage. Why The HP (HPQ) Story Is Shifting On Costs Memory Pressures And AI PC Hopes
• Negative Sentiment: Market reaction: shares near 52‑week low after CFO caution — Despite the quarter’s beats, the CFO’s warning on costs and lowered guidance erased the upside, pushing the stock toward its one‑year low. HP Hits 52-Week Low After CFO’s Warning Wipes Out Earnings Win

HP Company Profile

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.