HP stock drops more than 3% after positive earnings surprise and dividend announcement

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Hp slides 3.3% today to $28.73

Highlights

HP Inc. declared a quarterly dividend of $0.30 per share and posted quarterly earnings per share of $0.86, exceeding expectations.
First Nebraska Trust Co acquired 78,236 shares of HP Inc. valued at about $1.7 million during the second quarter.
HP stock remains under short-term pressure, trades below the 20-day average, but indicators forecast a high probability of a near-term rebound within the $27.32 to $29.37 range.

Dividend declaration and earnings beat met with persistent selling pressure

HP Inc. declared a quarterly dividend of $0.30 per share payable on October 7, 2024, to shareholders of record as of September 9. The company also reported quarterly earnings per share of $0.86, exceeding analyst expectations. First Nebraska Trust Co disclosed the acquisition of 78,236 HP Inc. shares valued at approximately $1.7 million during the second quarter, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, sees HP's recent price action as a warning sign. He notes the short-term breakdown below the MA-20 despite a positive earnings result and dividend declaration. Institutional buying has failed to offset persistent selling pressure. The stock's deeply oversold Stochastic RSI signals technical fragility, with the BBP suggesting risks of forced profit-taking. He cautions investors, saying, "Near-term downside risks remain elevated until HP confirms a sustained reversal above key resistance levels."

Viktoras Karapetjanc, expert at Traders Union, highlights HP's strong fundamental footing after delivering better-than-expected earnings and securing institutional support from First Nebraska Trust Co. He emphasizes that the medium- and long-term bullish structure remains intact above the MA-50 and MA-200. Market momentum, coupled with strong technical signals, points to renewed upside potential. Karapetjanc is constructive, noting, "Further growth is expected as the technical setup and robust earnings give confidence for a rebound above $28.91."

Jainam Mehta, market strategist, observes HP trading in a compression zone between key moving averages. He sees elevated intraday volatility and a deep Stochastic RSI trough as possible cues for tactical contrarian entries. Mehta notes that a breakout above $28.91 could trigger a short-term rally, while failure to hold $28.41 exposes $27.32. He adds, "Active traders should watch for a sharp rebound from oversold levels or prepare for quick rotation if downward momentum persists."

Bullish momentum persists as medium-term supports withstand drop

HP is trading below the MA-20 ($28.91) but remains above both the MA-50 ($25.85) and MA-200 ($22.6), indicating short-term pressure but maintaining a medium- to long-term bullish structure. The nearest floor sits at $28.41, while overhead resistance is defined by the MA-20 at $28.91. The Ichimoku Kijun at $28.1 continues to provide support. Momentum indicators show a bullish setup with the MACD and ADX forecasting buy signals. The RSI stands at 59.32, indicating buying pressure, while the Stochastic RSI at 8.52 is deeply oversold and highlights a potential near-term rebound. The CCI and BBP both show buyer dominance, with BBP reflecting an overbought condition. The Awesome Oscillator is neutral. Intraday volatility amplitude is 4.47%, with the asset trading near the daily low, signaling ongoing downward pressure after an opening gap lower.

In a recent review, analysts noted that HP Inc. maintained a broadly bullish technical structure despite volatility and short-term selling pressure. The latest price action consolidates this outlook, with current technical signals suggesting that traders should watch for a move above $28.91 as confirmation of a potential near-term rebound.

Source of Data: HPQ Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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