Hewlett Packard Enterprise Co (HPE)’s Stock Trading Higher on Back of Earnings

Hewlett Packard Enterprise Co (NYSE:HPE) reported a solid fiscal second quarter, with in-line profits and higher-than-expected sales by around $380 million. For the three months ended April 30, Hewlett Packard Enterprise earned $0.42 per share on revenue of $12.71 billion. The company expects FY 2016 EPS of $1.85 to $1.95, which is pretty much on target with the consensus EPS of $1.89 per share. The company also plans to spin off its enterprise services unit and merge it with Computer Sciences in a $8.5 billion deal that should deliver as much as $1.5 billion a year in cost synergies. Under the terms of the merger, current shareholders of Hewlett Packard Enterprise will own 50% of the company. On the back of the news, Hewlett Packard Enterprise’s stock opened over 10% in the green, but has slightly retreated and is currently trading up by 7%.

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At the end of the first quarter, a total of 51 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 11% from one quarter earlier. With hedge funds’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were upping their holdings substantially (or already accumulated large positions).

More specifically, the largest position in Hewlett Packard Enterprise was held by David Cohen and Harold Levy’s Iridian Asset Management, which reported $487.9 million worth of stock in its latest 13F filing. Richard S. Pzena’s Pzena Investment Management also disclosed a $369.4 million holding. Other funds long the stock include Jason Karp’s Tourbillon Capital Partners and Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell.

Among the largest shareholders of Hewlett Packard Enterprise, Tourbillon Capital initiated a $102.7 million stake in the company. Other funds with brand new positions are Robert Pohly’s Samlyn Capital and Robert Boucai’s Newbrook Capital Advisors. On the other hand, Paul Singer’s Elliott Management dumped its entire stake in HPE, that was worth $101.8 million, while David Tepper’s Appaloosa Management unloaded $55.6 million worth of stock during the quarter.

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