Why HP (HPQ) Shares Are Down Today

Recent Developments

HP (NYSE:HPQ), a leader in personal computing and printing, saw its shares dip by 1.7% during morning trading after Morgan Stanley adopted a more cautious outlook on the U.S. IT hardware sector and reduced its price target for HP.

Morgan Stanley downgraded its stance on the North American IT Hardware industry from “in-line” to “cautious,” citing a combination of weakening business demand, increasing component expenses, and elevated stock prices as factors behind its more defensive approach.

For HP specifically, analyst Erik Woodring maintained an "Underweight" rating and lowered the price target by 10%, from $20.00 to $18.00. This negative outlook affected the wider sector, causing shares of Dell Technologies and Hewlett Packard Enterprise to decline as well.

Market Perspective

HP’s stock has shown some volatility, experiencing 11 swings greater than 5% over the past year. Today’s decline suggests investors see the news as significant, but not enough to fundamentally alter their view of the company.

The most notable movement in the last year occurred eight months ago, when HP’s shares fell 8.2% following disappointing first-quarter 2025 results. The company missed both EPS and EBITDA targets and revised its full-year EPS forecast downward, citing a challenging economic environment and inconsistent recovery in printing and consumer technology spending. However, HP did slightly exceed revenue expectations, though the quarter remained weak overall.

Since the start of the year, HP’s stock has dropped 10%. At $19.91 per share, it currently trades 42.7% below its 52-week peak of $34.72 reached in February 2025. An investor who purchased $1,000 of HP shares five years ago would now have a position valued at $789.88.