Hewlett Packard Enterprise NYSE: HPE Now it is in a dangerous situation. The company will deal with the fact that many leaders are afraid: activist investors. This situation arises as a result of headings that the Elliott Management investment company has accumulated a large share in HPE.
Hewlett Packard Enterprise Today
Hewlett Packard Enterprise
- 52-week range
- $ 11.97
▼
$ 24.66
- Dividend yield
- 3.44%
- P/e ratio.
- 7.96
- Value is valuable
- $ 20.60
Elliott Management is engaged in various strategies typical of hedge funds. Nevertheless, the company is certainly the most famous due to its repentance for investing activists.
Activist investors, such as Elliott, are trying to influence the management teams of the companies in order to direct the companies in the direction that, as they consider necessary.
Elliott acquired HPE shares worth more than $ 1.5 billion. With an approximate estimate of $ 20 billionThese investments are a tremendous 7.5% of HPE shares. After this news became outbreaks, the HPE shares increased more than 5% April 15.
This indicates that the markets consider this as a significant positive development. Nevertheless, what can this really mean for HPE shares in the long term? What is the current state of HPE, and will this development have a positive or negative effect?
Study of recent work and positioning HPE today
In 2024, it seemed to go smoothly for a technological company. Promotions provided total profit for almost 26%Having beaten the return of the S&P 500 index by more than 2%. The company exceeded the adjusted profit per share (EPS) in all four quarters of 2024.
Strong performance in the HPE server segment supported the shares, while the revenue growth exceeded 30% in two of the four quarters. The success of the business of the HPE Server business was largely connected with this, those products reached with record income of $ 1.5 billion in 4 financial quarter.
However, 2025 was a different story. HPE shares provided total yield of approximately -29%. This is a much greater fall than approximately -14% total profitability of the SPDR Sector Foundation Sector of Technologies NYSEARCA: XLKThe company has slightly missed the EPS ratings for the financial quarter of 2025. Her guide to work with EPS throughout the year was much lower than expected. Adding an insult to injuries, the company announced that it leads away 5% of its labor for the next 12-18 months.
The growth of revenue from the company was still impressive, grew by 30%, but the concerns about profitability were the best. The operating margin of the server segment fell by 350 basic points in one quarter to 8.1%. The server segment was 55% of the revenue in the last quarter and 41% of the adjusted operating profit. In general, Wall Steztin has serious concerns about HPE from a sharp decrease in profitability.
Elliott Management: past actions lead to mixed conclusions
Hewlett Packard Enterprise Promotion Forecast Today
$ 20.60
36.19% growthModerate purchase
Based on 16 ratings of analysts
| The current price | $ 15,13 |
|---|---|
| High forecast | $ 29.00 |
| Average forecast | $ 20.60 |
| Low forecast | $ 14.00 |
Hewlett Packard Enterprise Promotion forecasts
In connection with the advent of Elliott as a huge shareholder, the investment company clearly noticed the recent problems that pursue HPE. Elliott and similar companies seek to achieve great changes in the firms in which they invest. This may include a change in the main executive director of the company, the desire to reduce costs, as well as the consequences of the company’s accent on its basic opportunities for business.
For example, back in November 2021, Elliot resolutely supported Dell Technologies’ NYSE: Dell Income from 81% of VMware shares. Since then, Dell shares have provided a total yield of 63% as of April 15. This is favorably compared with a yield of 23% and 6% of the profitability of S&P 500 and HPE, respectively.
This is especially noticeable, since this is due to Ellitt’s investments in HPE. Dell may be the largest competitor HPE in the server market. Elliot can have deep knowledge about this industry, given its previous experience with Dell, which he can use to improve the HPE business.
Nevertheless, it is important to note that most of the profit Dell came after Ellitt came out of its position. This creates uncertainty regarding how well Ellitt really knows this market. In addition, the 2021 report shows that Elliott Management has significantly reduced S&P 500 over five years. The fund brought a five -year annual income of 9.2% as of March 31, 2021, and not 16.3% per year for S&P 500.
What does Elliot investment mean for HPE
Considering that the Elliott mentioned above did not miss significant successes in Dell, it is important not to recall the HPE. This is especially true, given that Elliott plans for HPE are currently unknown. If Elliot reveals these plans, they can justify excitement depending on their advantages.
Target updates of the analytics tracking Marketbeat In 2025, do not draw excessively bull pictures. They simply indicate 12% growth on average From the closing price of HPE on April 15. The expectation approach and it makes sense to see for HPE shares, since it is important to consider future details from Elliott.
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