HPE's CEO sold $15.1 million of stock; five weeks later Barclays said the growth was memory inflation
Antonio Neri's trust sold 250,000 HPE shares at $60.44 on September 11, under a plan adopted in June. Barclays' October 14 call that HPE's revenue growth is memory inflation, not AI demand, has the stock below the chief executive's exit price.
Vincent Jiang · 3 min read
The sale that came first
On September 11, 2026, the revocable trust holding the stock of Antonio Neri, chief executive of Hewlett Packard Enterprise−7.04% — Hewlett Packard Enterprise, down 7.04 percent today, sold 250,000 shares at a weighted average of $60.44, banking about $15.1 million 1. The Form 4, the Securities and Exchange Commission filing for insider trades, shows the sale ran under a schedule adopted on June 4 and left Neri with 1,432,393 shares 1. The stock then touched a 52-week high of $73.56 in early October 4, before losing roughly 20% between October 9 and 15, a stretch Barron's called the worst week in the company's history 23.
A beat that Barclays reads as memory inflation
The break came on October 14, when Barclays−0.09% — Barclays, down 0.09 percent today analyst Tim Long cut HPE, Dell−5.82% — Dell, down 5.82 percent today and NetApp−5.69% — NetApp, down 5.69 percent today to Equal Weight from Overweight and lowered HPE's target to $77 from $83 7. Long wrote that strong enterprise revenue is "more of a function of memory costs than a move to enterprise AI at this time" 8. His survey work puts about 5% of corporate IT budgets on AI, with roughly a quarter of that sliver reaching hardware 5, and his coverage group now trades near 21 times estimated 2027 earnings against a five-year average of about 15 6. The quarter in dispute was a blowout: $12.21 billion of revenue, up 33.7%, and $1.11 of earnings per share against a $0.93 estimate, reported on September 2 2.
The revenue run Barclays says is memory prices, not AI demand
Data
| Revenue | |
|---|---|
| Q3 '24 | $8.46B |
| Q4 '24 | $7.85B |
| Q1 '25 | $7.63B |
| Q2 '25 | $9.14B |
| Q3 '25 | $9.68B |
| Q4 '25 | $9.3B |
| Q1 '26 | $10.68B |
| Q2 '26 | $12.21B |
The paper the wires skipped
HPE slipped about 8% on the day of the downgrade 8, fell 7% more to $58.63 on October 15, its fourth straight decline 4, and opened Friday at $55.32 2. What the downgrade coverage left out is the insider record beside it. HPE insiders sold 551,456 shares worth $35.27 million over three months, among them executive vice president Rami Rahim's $2.1 million at $61.42 on September 29; the twelve-month tally is $71.1 million sold, nothing bought 24. The CEO banked $15.1 million at $60.44; the dip now trades at $55.32.
The stock has fallen through the price the chief executive sold at
Data
| HPE share price | |
|---|---|
| Sep 11 | $60.44 |
| Early Oct | $73.56 |
| Oct 15 | $58.63 |
| Oct 16 open | $55.32 |
The bulls have documents too
Neri's plan was adopted four months before the peak, the pre-scheduled selling that Rule 10b5-1 plans exist for 1. Elliott Investment Management, the activist fund, lifted its HPE stake 47.2% in the first quarter to 27.4 million shares 2. Michael Dell, whose company took the same cut, told CNBC that AI infrastructure demand should outpace supply through 2030 8. The most-recommended HPE post on Stocktwits during the October 15 selloff noted Long "was giving warning about Apple+0.16% — Apple, up 0.16 percent today when it was $200" and dismissed him as clueless 9. Consensus still reads Moderate Buy across 20 analysts 2.
Every HPE target on the Street sits above the $55.32 open
Data
| Value | |
|---|---|
| Citigroup | $92 |
| Raymond James | $86 |
| Goldman Sachs | $80 |
| Barclays | $77 |
| JPMorgan | $70 |
| UBS | $66 |
| Consensus (20 analysts) | $65.44 |
The quarter that settles it
HPE guides its fourth quarter, which closes October 31, at $1.20 to $1.30 of earnings per share 2. If revenue keeps growing after memory costs stop inflating it, the downgrade was early. The Form 4s filed afterward will show which side held its shares.
Deepdive
AI-generated from this story and its cited sources. Not investment advice.
