Searching For HP Inc. (HPQ) Direction: Watch This Indicator

A handful of technical analysis tools are suggesting that HP Inc. (NYSE:HPQ) overall gets 32% Sell rating. The stock is also flashing a Sell from the Barchart TrendSpotter trading system. Traders hoping to speculate on the HPQ’s short-term trajectory should know that short terms indicators for the stock averaged 0% Hold with an average daily trading volume over the past 20 days at 10771825 shares. HPQ stock has overall a 0.25% Sell signal considering medium term indicators and the 50-day average daily volume remained almost 10600068 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was 9053706 shares, is 67% Sell on the basis of long term indicators.

The share price is currently staying around the first support level of $23.12. Below this, the next support is placed in the zone of $22.21. Till the time, the HPQ stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 52.33 on daily chart, which may remain a cause for concern. If the price breaks below $22.21 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $24.51 mark may result into a pull-back move towards $24.99 level.

HP Inc. (HPQ) is projected to climb by 14.99 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $30-month high price target. This represents a whopping 24.9 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $27, which represents a return potential of 12.41 percent when compared to the closing price of the stock of $24.02 on Thursday, December 06. The lowest price target for the stock is $22 — slightly more than -8.41 percent from HPQ’s current share price.

Here’s a rundown of insider trading activity for sense of HP Inc. (NYSE:HPQ). The earliest insider trade took place on 12/03/2018. Cho Alex parted with a total of 3.88 thousand shares of company at average share price of $23.68. The total for the sales was set at $91.85 thousand. After this transaction, the President, Personal Systems account balance stood at 0 thousand shares. The stock grew 1.44 percent since that insider sale. On 11/14/2018, Rivera Kim M, Chief Legal Officer, GC & Sec, sold 46.07 thousand shares at a price per share of $24.14. This removed 1.11 million shares from the insider’s fortune and the stock saw a -0.5 percent retreat in value since the news became public. This transaction left 15.24 thousand shares in the Chief Legal Officer, GC & Sec account. On 11/07/2018, President and CEO Weisler Dion J performed a sale transaction worth $2.14 million. This sale at $24.8 each has eliminated 86.39 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -3.15 percent decrease since the transaction was reported. The insider now is left with 736.96 thousand shares remaining in the account. Myers Marie, who performs the Global Controller, HFS & PAO job, sold 8.47 thousand shares for $193.54 thousand. The disposal occurred on 06/29/2018 was priced at $22.85 per share. The share price soared 5.12 percent since the reporting date. Myers Marie now left with a stake of 0 thousand HPQ stock worth $0 thousand after the insider selling.

HPQ shares accumulated 0.78 points or 3.36 percent on Thursday to $24.02 with a heavy trade volume of 19.811 million shares. After opening the session at $22.76, the shares went as high as $24.09 and as low as $22.7, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $38.5 billion and now has 1.6 billion shares outstanding. HP Inc. (HPQ) stock has lost -2.52 percent of market value in 21 trading days.

Analysts at JP Morgan cut their rating on shares of HP Inc. (NYSE:HPQ) from Overweight to Neutral in their opinion released on October 05. Maxim Group analysts again handed out a Buy rating to HPQ stock but they lifted target price for the shares in a flash note to investors on October 04. The price target has been raised from $29 to $32. Maxim Group, analysts launched coverage of HPQ stock with a Buy rating, according to their flash note to investors on October 04. Analysts at Maxim Group are sticking to their Buy recommendation. However, on August 24, they lifted target price for these shares to $29 from $28. Analysts at Maxim Group, made their first call for the stock with a Buy rating, according to a research note that dated back to August 24.

HPQ stock has a trailing 3-year beta of 1.48, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $1.61 a share in the trailing twelve months. The stock’s value has surged 14.33 percent year to date (YTD) against a rise of 14 percent in 12 month’s time. The company’s shares still trade -11.3 percent away from its 1-year high of $27.08 and 24.39 percent up from 52-week low of $19.31. The average consensus rating on the company is 2.1, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of HP Inc. (HPQ) are trading at a P/E ratio of 14.12 times earnings reported for the past 12 months. The industry HPQ operates in has an average P/E of 15.17. Its P/E ratio went as low as 4.22X and as high as 14.52 over the 5-year span. Further, it is sporting a 0.67 on the Price-to-Sales ratio. Compare this with the industry average P/S of 0.77. 18.4 percent is the gross profit margin for HP Inc. and operating margin sits at 6.4 percent. Along with this, the net profit margin is 7.6 percent.

HPQ will be declaring its Q1 financial results on February 21. Analysts are forecasting revenue to climb 3 percent to $15B in the next fiscal quarter, while earnings are seen soaring by nearly 8.33 percent to $0.52 per share. History has shown that shares in HP Inc. have gone down on 19 different earnings reaction days and are predicted to add 0.05 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.54 per share, in line with the $0.54, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $14.6B, better than the $14.3B analysts expected. Earnings are estimated to increase by -3 percent this year, 4.61 percent next year and continue to increase by 7.5 percent annually for the next 5 years.