Majority of analysts lean bearish toward HPQ and its 36% year-over-year deficit
HP Inc (NYSE:HPQ) shares are down 2.5% to trade at $20.10 at last check, following a downgrade at Barclays to "underweight" from "equal weight," along with a price-target cut to $18 from $24. The analyst in coverage noted recent hurdles in the PC and printing businesses.
HPQ is currently down 41% from its Feb. 23, 52-week high of $35.27, and is now trading at it's lowest level since December 2020. The former tech giant is eyeing its fourth loss in the last five sessions and hasn't turned in a weekly win since Dec. 5.
To no surprise, most analysts remain cautious on HPQ, with 14 of the 15 in coverage maintaining a "hold" or worse rating. Even so, the 12-month consensus target price of $25.62 reflects a 24.31% upside.
Options are looking like a good bet on the PC maker. HPQ's Schaeffer's Volatility Index (SVI) of 34% stands higher than just 16% of all other readings from the past year, implying that near-term option traders are pricing in relatively low volatility expectations.
It's also worth nothing that HPQ's Schaeffer's Volatility Scorecard (SVS) sits at a relatively high 87 out of 100, indicating that the stock has tended to exceed option traders' volatility expectations during the past year.