Applied Finance Capital Management LLC Cuts Stake in HP Inc. (NYSE:HPQ)

Key Points

• Applied Finance Capital Management LLC reduced its stake in HP Inc. by 39.5%, holding 1,087,421 shares after selling 710,576 shares, making HP approximately 2.2% of its investment portfolio.
• HP reported earnings of $0.71 per share for the last quarter, which missed analysts' expectations of $0.80, despite revenue of $13.22 billion, exceeding estimates of $13.09 billion.
• HP recently announced a quarterly dividend of $0.2894 per share, with an annualized yield of 4.51%, highlighting its commitment to returning value to shareholders.

Applied Finance Capital Management LLC cut its holdings in HP Inc. (NYSE:HPQ - Free Report) by 39.5% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 1,087,421 shares of the computer maker's stock after selling 710,576 shares during the period. HP makes up approximately 2.2% of Applied Finance Capital Management LLC's portfolio, making the stock its 12th biggest position. Applied Finance Capital Management LLC owned approximately 0.12% of HP worth $30,111,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in HPQ. Geode Capital Management LLC lifted its position in shares of HP by 2.3% during the fourth quarter. Geode Capital Management LLC now owns 25,350,016 shares of the computer maker's stock worth $825,398,000 after acquiring an additional 579,525 shares in the last quarter. Gotham Asset Management LLC lifted its holdings in shares of HP by 23.6% during the fourth quarter. Gotham Asset Management LLC now owns 639,423 shares of the computer maker's stock valued at $20,864,000 after purchasing an additional 122,289 shares during the last quarter. Resona Asset Management Co. Ltd. bought a new stake in shares of HP during the fourth quarter valued at approximately $9,481,000. BayBridge Capital Group LLC bought a new stake in shares of HP during the first quarter valued at approximately $1,505,000. Finally, National Bank of Canada FI grew its position in HP by 71.7% in the 4th quarter. National Bank of Canada FI now owns 698,376 shares of the computer maker's stock worth $22,788,000 after purchasing an additional 291,525 shares during the period. 77.53% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several analysts have commented on HPQ shares. Morgan Stanley decreased their price target on shares of HP from $29.00 to $26.00 and set an "equal weight" rating on the stock in a research note on Thursday, May 29th. UBS Group decreased their price target on shares of HP from $37.00 to $26.00 and set a "neutral" rating for the company in a report on Thursday, May 29th. JPMorgan Chase & Co. cut their price objective on shares of HP from $30.00 to $27.00 and set an "overweight" rating on the stock in a research note on Thursday, May 29th. Dbs Bank lowered shares of HP from a "moderate buy" rating to a "hold" rating in a research report on Wednesday, June 11th. Finally, Wall Street Zen raised shares of HP from a "hold" rating to a "buy" rating in a research note on Monday, May 12th. One analyst has rated the stock with a sell rating, twelve have given a hold rating and three have assigned a buy rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $29.54.

HP Price Performance

Shares of HP stock traded down $0.30 during trading hours on Wednesday, hitting $25.38. The company had a trading volume of 2,600,317 shares, compared to its average volume of 8,263,479. The company's 50-day moving average is $25.41 and its two-hundred day moving average is $27.78. HP Inc. has a twelve month low of $21.21 and a twelve month high of $39.79. The company has a market cap of $23.83 billion, a P/E ratio of 9.80, a price-to-earnings-growth ratio of 2.09 and a beta of 1.27.

HP (NYSE:HPQ - Get Free Report) last issued its earnings results on Wednesday, May 28th. The computer maker reported $0.71 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.80 by ($0.09). HP had a net margin of 4.64% and a negative return on equity of 244.99%. The company had revenue of $13.22 billion during the quarter, compared to analyst estimates of $13.09 billion. During the same quarter in the previous year, the company posted $0.82 EPS. The company's quarterly revenue was up 3.3% on a year-over-year basis. Sell-side analysts expect that HP Inc. will post 3.56 EPS for the current year.

HP Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Wednesday, September 10th will be given a dividend of $0.2894 per share. The ex-dividend date of this dividend is Wednesday, September 10th. This represents a $1.16 dividend on an annualized basis and a yield of 4.56%. HP's payout ratio is currently 44.40%.

HP Company Profile

HP Inc provides products, technologies, software, solutions, and services to individual consumers, small- and medium-sized businesses, and large enterprises, including customers in the government, health, and education sectors worldwide. It operates through Personal Systems and Printing segments. The Personal Systems segment offers commercial personal computers (PCs), consumer PCs, workstations, thin clients, commercial tablets and mobility devices, retail point-of-sale systems, displays and other related accessories, software, support, and services for the commercial and consumer markets.