HP Inc. shares hovered near $29.75 on Wednesday, reflecting a cautious options market ahead of the company’s earnings report due after U.S. markets close. Trading volumes in bearish contracts significantly exceeded bullish bets, with put options accounting for 53,415 of the 67,187 total contracts exchanged by midday, a nearly 4-to-1 skew favoring puts.
The heavy put activity included concentrated positioning in short-dated options, such as 20,007 contracts tied to a September 18 and October 16 $30 put spread, alongside nearly 20,000 contracts in an August 28 $26/$27 put spread. Longer-dated positioning also featured a June 2027 straddle combining $35 calls and $22 puts, indicating expectations of significant price volatility regardless of direction.
HP’s stock has rallied 61% over the past six months and 36% year-to-date, yet remains below its 52-week high of $32.19. The company’s market capitalization stands at $27.00 billion, with a 4.4% dividend yield and a nine-year streak of annual dividend increases. Analysts’ mean price target of $27.32 suggests limited upside from current levels, though individual targets vary widely—Morgan Stanley at $17, Goldman Sachs at $21, and Barclays at $32.
Earnings expectations point to a 12% year-over-year decline in profit to $0.66 per share, offset by modest revenue growth to $14.34 billion. The stock’s fair value estimate of $34.50 implies a potential upside, though the options market’s bearish tilt suggests investor skepticism ahead of the release.
