Primecap Management Co. CA Cuts Position in HP Inc. (NYSE:HPQ)

Key Points

• Primecap Management Co. CA reduced its stake in HP Inc. by 1.3%, selling 292,510 shares and retaining approximately 21.6 million shares valued at $598.7 million.
• Latest analyst ratings reflect a cautious outlook for HP, with multiple firms cutting their price targets, leading to a consensus rating of "Hold" and an average target price of $29.54.
• HP announced a quarterly dividend of $0.2894 per share, payable on October 1st, representing an annual yield of 4.6% and a payout ratio of 44.79%.

Primecap Management Co. CA lessened its holdings in HP Inc. (NYSE:HPQ - Free Report) by 1.3% during the first quarter, according to the company in its most recent disclosure with the SEC. The firm owned 21,622,895 shares of the computer maker's stock after selling 292,510 shares during the quarter. Primecap Management Co. CA owned about 2.29% of HP worth $598,738,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also bought and sold shares of HPQ. Harbor Island Capital LLC grew its stake in shares of HP by 9.7% in the 1st quarter. Harbor Island Capital LLC now owns 387,455 shares of the computer maker's stock worth $10,729,000 after buying an additional 34,405 shares during the last quarter. West Michigan Advisors LLC purchased a new stake in shares of HP in the first quarter worth $212,000. iA Global Asset Management Inc. grew its stake in shares of HP by 37.2% in the first quarter. iA Global Asset Management Inc. now owns 71,867 shares of the computer maker's stock worth $1,990,000 after acquiring an additional 19,501 shares during the last quarter. Costello Asset Management INC purchased a new stake in shares of HP in the first quarter worth $70,000. Finally, Commonwealth Retirement Investments LLC grew its stake in shares of HP by 2.8% in the first quarter. Commonwealth Retirement Investments LLC now owns 51,596 shares of the computer maker's stock worth $1,429,000 after acquiring an additional 1,403 shares during the last quarter. Hedge funds and other institutional investors own 77.53% of the company's stock.

Wall Street Analyst Weigh In

Several analysts recently commented on the stock. Dbs Bank downgraded shares of HP from a "moderate buy" rating to a "hold" rating in a research report on Wednesday, June 11th. Evercore ISI cut their price target on shares of HP from $40.00 to $32.00 and set an "outperform" rating on the stock in a report on Monday, April 28th. JPMorgan Chase & Co. cut their price target on shares of HP from $30.00 to $27.00 and set an "overweight" rating on the stock in a report on Thursday, May 29th. Bank of America cut their target price on HP from $35.00 to $33.00 and set a "neutral" rating on the stock in a research note on Wednesday, May 28th. Finally, TD Cowen cut their target price on HP from $38.00 to $28.00 and set a "hold" rating on the stock in a research note on Thursday, May 29th. One investment analyst has rated the stock with a sell rating, twelve have assigned a hold rating and three have issued a buy rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $29.54.

HP Stock Performance

Shares of NYSE:HPQ opened at $25.05 on Wednesday. The stock has a market capitalization of $23.53 billion, a price-to-earnings ratio of 9.67, a PEG ratio of 2.02 and a beta of 1.29. The stock's 50-day simple moving average is $25.06 and its two-hundred day simple moving average is $27.51. 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 posted 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 business had revenue of $13.22 billion during the quarter, compared to analysts' expectations of $13.09 billion. HP had a negative return on equity of 244.99% and a net margin of 4.64%. The business's quarterly revenue was up 3.3% compared to the same quarter last year. During the same period in the previous year, the business posted $0.82 EPS. As a group, equities analysts forecast that HP Inc. will post 3.56 earnings per share for the current fiscal year.

HP Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Wednesday, September 10th will be given a dividend of $0.2894 per share. The ex-dividend date is Wednesday, September 10th. This represents a $1.16 annualized dividend and a yield of 4.6%. HP's payout ratio is 44.79%.

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.

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