Berkshire Hathaway Inc. Sells Shares of HP Inc.
Warren Buffett's Berkshire Hathaway Inc. recently filed a disclosure, revealing that it has sold 5.5 million shares of HP Inc.
According to the filing, Berkshire unloaded nearly 939,000 HP shares on Monday at an average price of $29.59. The company sold 1.7 million shares on Tuesday at an average price of $29.07 and dumped 2.9 million shares on Wednesday at an average price of $28.40. The total value of the sales amounted to approximately $158 million.
Even after the sales, Berkshire still holds 115.5 million HP shares, which are valued at nearly $3.3 billion based on Wednesday's closing price of $28.33. This represents about 11.7% of HP's outstanding shares.
HP's stock experienced a 1.9% decline in premarket trading on Thursday.
In April 2022, Berkshire had disclosed its large stake in HP, which consisted of 120.95 million shares worth $4.2 billion. These shares were purchased at prices ranging from $34 to $37.
The decision to sell shares comes after a challenging quarter for HP. Evercore ISI analyst Amit Daryanani noted that the company had recently cut its full-year earnings and free-cash-flow expectations due to macro softness and continued channel inventory overhang.
The PC market, which experienced a renaissance during the pandemic, has been sluggish as of late.
Investors are curious to see if Berkshire Hathaway will continue reducing its ownership in the coming days and weeks. Daryanani speculates whether Buffett will wait until the upcoming analyst day on October 10th to make any additional ownership changes.
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