Analysts and options traders are targeting HPE and DELL
Tech firms Dell Technologies Inc (NYSE:DELL) and Hewlett Packard Enterprise Co (NYSE:HPE) are both in focus following their respective earnings reports, though one is faring much better than the other today.
Dell Technologies stock hit record highs after the use of artificial intelligence (AI) boosted the company's annual forecast. The computer maker also topped fourth-quarter earnings and revenue estimates, with Morgan Stanley adding DELL to its "top picks" list while also raising its price target to $128 from $100, while no fewer than nine other analysts lifted their price objectives as well.
At last glance, DELL was up 26.5% at $119.83, earlier as high as $130.80. Shares are on track for their sixth daily win in seven, as well as their biggest single-day percentage jump ever. The security is up almost 200% in the last 12 months, with a 56.2% gain for 2024.
Options traders are blasting DELL today, with 117,000 calls and 54,000 puts exchanged so far -- already 27 times its average daily options volume. Expiring today, the weekly 3/1 120-strike call is the most active contract, with new positions being opened there.
Hewlett Packard reported mixed fiscal first-quarter results, with lower-than-expected revenue, and a disappointing second-quarter forecast. No fewer than five brokerages slashed their price targets after the event, with the lowest from Susquehanna to $14 from $16. HPE has erased its early morning losses, however, now up 1.8% at $15.51.
Hewlett Packard stock is seeing plenty of activity in the options pits as well, with traders leaning quite bullish. So far, 34,000 calls and 36,69 puts have crossed the tape, which is 16 times HPE's average daily options volume. The June 17 call is the most active, where new positions are being opened.