Yesterday's slide leaves HP traders hoping for a bounce
- Yesterday's trading volume was 7.15 million shares which is slightly below the 21-day average of 9.30 million.
- Continuing its a 14 day bearish run (-$3.31), HP showed losses yesterday.
- HP's board sets quarterly dividend of 26.25 cents per share to be paid on Wednesday, October 4th; annual dividend yield esimated at 3.92%.
With around 9 hours until market open on the New York Stock Exchange, yesterday's session saw to it that S&P 500 dropped by 1.64% to close at 4,330.
HP was down yesterday while similar drops were seen throughout the Technology sector (down 0.633%).
The IT company is now trading 27.41% below its 3-month high of $33.56.
So far in 2023, it has been beating the S&P by 0.4%.
HP's market cap currently stands at $26.49 billion
yesterday's trading volume was 7.15 million shares which is slightly below the 21-day average of 9.30 million.
HP is forecasted to generate revenues of $13.38 billion and EPS of 85 cents.
While some of HP's indicators have improved and others have not (in comparison to recent reports), the stock's fundamentals remain slightly greater than the competition.
Standing out from the rest of HP's fundamental indicators is the company's worsening debt-to-equity (D/E) ratio of -3.01. Despite declining from -4, HP's D/E ratio remains above the sector average. The D/E ratio gauges the nature of a company's funding and whether it is utilising debt over proprietary capital. A high D/E ratio indicates the company is highly leveraged, and therefore, could be overcommitted to borrowed capital in maintaining operations. Price to book ratio is better than the industry as well, although it dropped from previous quarter -9.53 to currently -7.11.
Fundamental analysis shows that HP retains its rating of 'Neutral' as of now.
Chart analysis indicates HP Inc could begin to recover as it approaches significant support, now 16 cents away from $26.64. Dipping below could be an indication that further losses are ahead.
With regards to technical trend indicators, chart analysis show that the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored.
Momentum evaluation shows that the Relative Strength Index indicates HP is in an oversold condition, which could precipitate a reversal and set up a new bullish phase.
Analysis based on the asset volatility indicates that HP's lower Bollinger Band® is at $26.04, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains.
Overall, the technical outlook suggests HP is likely to remain muted for the immediate future, with no clear-cut direction.
HP's board declared a dividend of 26.25 cents per share on Wednesday, June 21st for all shareholders on record up until Wednesday, September 13th. The decision means shareholders will receive a dividend yield of 3.92% this year with the payment set to be made on Wednesday, October 4th.
HP was not the only decliner in the technology sector; Cisco Systems lost 3.89% yesterday and closed at $53.34. Adobe went down to $513.88, losing 4.09% after it closed at $535.78 yesterday. Intuit went down to $504.37, losing 3.67% after it closed at $523.59 yesterday. REGION: United States ASSET: HP (HPQ) PREV. OPEN: $27.06 PREV. CLOSE: $26.8 PRE-MARKET: $26.8 TIME TO OPEN: 9 hours
