U.S. stocks edged lower; Q2 GDP rose more than expected, Nvidia disappoints
Bethany Mayer, a director at Hewlett Packard Enterprise Co (NYSE:HPE), recently sold 6,409 shares of the company's common stock. The timing is notable as HPE shares are trading near their 52-week low of $11.96, with the stock down 20% in the past week alone. According to InvestingPro analysis, HPE appears undervalued at current levels, trading at a modest P/E ratio of 5.9x. The shares were sold at an average price of $13.19 each, resulting in a total transaction value of $84,534. This sale was conducted under a trading plan adopted on December 17, 2024.
Following the transaction, Mayer holds no shares directly. However, an indirect ownership of 20,078 shares is maintained through the JM 2002 Trust, reflecting a transfer into the trust on April 7, 2025.
In other recent news, Hewlett Packard Enterprise (HPE) reported its Q1 2025 financial results, revealing a revenue of $7.85 billion, slightly surpassing the forecast of $7.81 billion. However, the company's earnings per share (EPS) fell short of expectations, coming in at $0.49 compared to the anticipated $0.50. This mixed performance led Evercore ISI analyst Amit Daryanani to lower the price target for HPE shares from $22 to $17, while maintaining an In Line rating. Despite a solid 17% year-over-year revenue increase, HPE's guidance for the second quarter and full fiscal year 2025 did not meet expectations, with projected revenue of $7.4 billion and EPS of $0.31 for the April quarter.
Hewlett Packard Enterprise is also facing challenges in its compute segment, including mispricing of x86 products and an excessive inventory of AI servers. Nevertheless, the company anticipates a strong recovery in the latter half of the year, supported by cost reduction plans and revenue recovery efforts. In the realm of mergers, HPE remains committed to its acquisition of Juniper Networks (NYSE:JNPR), with a trial against the Department of Justice scheduled for July 9th. Additionally, HPE and NVIDIA (NASDAQ:NVDA) have announced a new suite of AI solutions aimed at enhancing enterprise AI applications, further solidifying their collaboration in the sector.
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