Technology Sector Update for 05/23/2018: HPE,QRVO,USAT,TWOU

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Technology stocks caught an updraft this afternoon, with shares of tech companies in the S&P 500 rising just over 0.6% in value today while the Philadelphia semiconductor index was posting a slightly more than 0.3% increase.

Among technology stocks moving on news:

- Hewlett Packard Enterprise ( HPE ) tumbled Wednesday, at one point dropping about 11% to a session low of $15.45 a share despite reporting adjusted fiscal Q2 profit and revenue exceeding Wall Street expectations and issuing Q3 and FY18 earnings guidance straddling analyst estimates. Excluding one-time items, the enterprise software company earned $0.34 per share during the three months ended April 30, down from $0.35 per share during the same quarter last year but still beating the Capital IQ by $0.03 per share. Revenue rose 10% year over year to $7.5 billion during the three months ended April 30, also topping the $7.39 billion analyst mean. Following the above-consensus Q2 results, analysts at Barclays Wednesday raised their price target for Hewlett Packard Enterprise shares by $1 to $18 a share while maintaining an Underweight rating for the stock.

In other sector news:

+ USA Technologies ( USAT ) climbed to its highest share price since July 2005 at $13.45 each, rising as much as 14% after Wednesday pricing a $60 million public offering of its common stock at a 6.8% discount to Tuesday's closing price. After paying underwriter discounts and other offering costs, the Chinese networking equipment company is expecting the $11-a-share offering price will generate around $59.74 million in net proceeds.

+ Qorvo ( QRVO ) was narrowly higher Wednesday afternoon, largely swinging between small gains and losses since the opening bell after the chipmaker authorized the repurchase of up to $1 billion of its outstanding common stock. The new buyback program includes approximately $126 million authorized under a previous authorization.

- 2U ( TWOU ) declined Wednesday, with shares of the education technology company at one point rising over 4%, after pricing a $297 million public offering of its common stock at $90 a share, representing a 1.8% discount relative to its closing price on Tuesday. The company also issued a 30-day option to the underwriters to buy up to 500,000 additional shares of common stock at the same public offering price. After first paying underwriter discounts and other offering expenses, 2U is expecting to use the net proceeds for working capital and other general corporate purposes.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Technology , Commodities
Referenced Symbols: HPE , USAT , QRVO , TWOU

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