HP (HPQ) ·
HP Inc. Faces Institutional Trims and Component Pressures Amid Divergent Ratings
Retirement Systems of Alabama cut its HP Inc. position by 12.7%, while recent filings highlight rising memory costs and mixed Wall Street recommendations for the hardware maker.
Institutional investor Retirement Systems of Alabama reduced its position in HP Inc. (NYSE:HPQ) by 12.7% during the third quarter, according to a recent Form 13F filing with the SEC. The fund sold 286,559 shares, leaving it with 1,970,880 shares valued at $61,649,000, representing a 0.22% ownership interest. Hedge funds and other institutions collectively hold 77.53% of HP stock.
The institutional trimming comes as recent company performance displays a notable split between revenue and shipments. Although personal systems sales climbed, total computer shipments fell sharply. The revenue increase was bolstered by higher average selling prices and enterprise buyers choosing higher-specification laptops and workstations, while price-conscious consumers pulled back.
Hardware operations face operational pressures from rising memory and storage expenses. Heavy demand for advanced memory from artificial intelligence data centers has tightened component supply for consumer and commercial computers. HP has also factored non-recurring tariff refunds into recent profitability, while operating margins in the printing unit continue to be anchored by recurring supplies and subscription plans.
Brokerage opinions on HPQ remain split. Reports from MarketBeat place the consensus target price at $26.30, with one tally noting a Hold consensus of five buys, seven holds, and five sells, while another compiled seventeen brokers into a Reduce rating featuring four buys, eight holds, and five sells. Individual adjustments include Weiss Ratings raising its view to a buy (b-) grade on Tuesday, November 3rd, and KGI Securities lifting its price objective from $18.00 to $32.00 on Thursday, August 27th.
In its last quarterly report on Wednesday, August 26th, HP posted earnings per share of $0.83, exceeding the analyst consensus of $0.66, on revenue of $15.68 billion, which climbed 12.5% year over year. Management projected full-year fiscal 2026 earnings between 3.190-3.290 EPS and fourth-quarter earnings between 0.690-0.790 EPS, matching analyst consensus estimates of 3.23 EPS for the fiscal year.