HP Stock Turns Sharply Lower on Weak Forecast

HP Inc (NYSE:HPQ) stock is staging a steep post-earnings slide, down 9.2% to trade at $28.49 at last glance and on track for its worst single-session drop in more than a year. The tech company's fiscal third-quarter earnings of 86 cents per share were in line with analyst estimates, but revenue missed expectations. HP's slashed full-year forecast is really what's weighing today, however, as China remains cautious about spending on IT. 

No fewer than five analysts slashed their price targets after the event, with the lowest from Barclays to $23 from $24. The 12-month consensus price target of $30.20 is now a slim premium to current levels. That's notable because analysts are already exceedingly bearish, with 11 of the 12 in coverage carrying a "hold" or worse rating. 

So far in the options pits today, 18,000 calls and 21,000 puts have crossed the tape, volume that is already 3.7 times the average daily amount. The weekly 9/1 28.50-strike call is the most active contract, with new positions being bought to open there. 

Now at its lowest levels since March, HPQ is back below its 320-day moving average, a trendline that captured last week's pullback. Year-over-year, the shares are down 7.2%.