Harbor Island Capital LLC Buys 34,405 Shares of HP Inc. (NYSE:HPQ)

Key Points

• Harbor Island Capital LLC increased its stake in HP Inc. by 9.7% during the first quarter, owning 387,455 shares worth approximately $10.73 million.
• HP reported earnings of $0.71 per share, which fell short of the consensus estimate by $0.09, despite revenue increasing by 3.3% compared to last year.
• The company announced a quarterly dividend of $0.2894 per share, reflecting a 4.6% dividend yield and a payout ratio of 44.40%.

Harbor Island Capital LLC boosted its stake in HP Inc. (NYSE:HPQ - Free Report) by 9.7% in the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 387,455 shares of the computer maker's stock after buying an additional 34,405 shares during the quarter. HP makes up about 5.3% of Harbor Island Capital LLC's holdings, making the stock its 9th biggest position. Harbor Island Capital LLC's holdings in HP were worth $10,729,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also modified their holdings of the company. Orion Portfolio Solutions LLC lifted its stake in HP by 15.8% in the fourth quarter. Orion Portfolio Solutions LLC now owns 22,358 shares of the computer maker's stock valued at $730,000 after acquiring an additional 3,043 shares during the last quarter. Wellington Management Group LLP increased its position in HP by 12.6% during the fourth quarter. Wellington Management Group LLP now owns 259,257 shares of the computer maker's stock worth $8,460,000 after buying an additional 28,910 shares during the last quarter. Resona Asset Management Co. Ltd. bought a new position in HP during the fourth quarter valued at about $9,481,000. Dynamic Technology Lab Private Ltd acquired a new stake in shares of HP in the fourth quarter worth about $921,000. Finally, Envestnet Asset Management Inc. lifted its position in shares of HP by 3.7% in the fourth quarter. Envestnet Asset Management Inc. now owns 1,718,989 shares of the computer maker's stock worth $56,091,000 after buying an additional 61,492 shares during the last quarter. 77.53% of the stock is currently owned by hedge funds and other institutional investors.

HP Trading Down 0.1%

HPQ traded down $0.02 on Wednesday, hitting $25.03. 8,104,254 shares of the stock traded hands, compared to its average volume of 7,069,429. The business has a fifty day moving average price of $25.06 and a two-hundred day moving average price of $27.51. The firm has a market capitalization of $23.51 billion, a PE ratio of 9.67, a P/E/G ratio of 2.03 and a beta of 1.29. HP Inc. has a 52 week low of $21.21 and a 52 week high of $39.79.

HP (NYSE:HPQ - Get Free Report) last released its quarterly earnings data on Wednesday, May 28th. The computer maker reported $0.71 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.80 by ($0.09). The firm had revenue of $13.22 billion for the quarter, compared to the consensus estimate of $13.09 billion. HP had a net margin of 4.64% and a negative return on equity of 244.99%. The business's revenue for the quarter was up 3.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.82 earnings per share. On average, equities research analysts forecast that HP Inc. will post 3.56 EPS for the current fiscal year.

HP Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Wednesday, September 10th will be paid a $0.2894 dividend. 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 4.6%. HP's payout ratio is presently 44.79%.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on the company. Evercore ISI cut their price objective on HP from $40.00 to $32.00 and set an "outperform" rating on the stock in a research note on Monday, April 28th. JPMorgan Chase & Co. dropped their price target on shares of HP from $30.00 to $27.00 and set an "overweight" rating on the stock in a research report on Thursday, May 29th. Wall Street Zen raised shares of HP from a "hold" rating to a "buy" rating in a report on Monday, May 12th. UBS Group dropped their target price on shares of HP from $37.00 to $26.00 and set a "neutral" rating on the stock in a report on Thursday, May 29th. Finally, KGI Securities began coverage on shares of HP in a report on Thursday, May 29th. They set a "neutral" rating for the company. One investment analyst has rated the stock with a sell rating, twelve have assigned a hold rating and three have assigned a buy rating to the stock. Based on data from MarketBeat, HP has a consensus rating of "Hold" and a consensus price target of $29.54.

HP 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.