HP posted better-than-expected fiscal fourth-quarter earnings and revenue
The shares of HP Inc (NYSE:HPQ), otherwise known as The Hewlett-Packard Company, are surging today, up 10.9% to trade at $35.71 at last check. This surges comes after the tech company posted better-than-expected fiscal fourth-quarter earnings and revenue. In response, no fewer than six analysts lifted their price targets, including Wells Fargo, which cited the tech company's sharp increase in the average selling price of PC's.
Earlier today, HPQ hit a fresh record high of $36.21, extending its previous May 10 record high of $36. Year-over-year, the equity is now up 63.8%.
Despite today's bull notes, there is still plenty of room for an increase in optimism amongst the brokerage bunch. Of the nine analysts in coverage, only one carries a "strong buy" rating on HPQ, with the remaining eight a "hold" or worse. Plus, the 12-month consensus price target of $34.99 is still a 1.8% discount to current levels.
It's also worth noting that short interest makes up 4.5% of HP stock's available float. In other words, it would take nearly six days to buy back these bearish bets, at the stock's average pace of trading -- plenty of pent-up buying power.
HPQ is one of the most highly targeted amongst options traders today, with options volume running at eight times the intraday average, and pacing for the 99th percentile of its annual range. So far, 44,000 calls and 22,000 puts have crossed the tape. The weekly 11/26 36-strike call is the most popular, with new positions being opened there.