The HP Inc (NYSE: HPQ) stock price fell 6.61% after the Oracle of Omaha, Warren Buffett’s Berkshire Hathaway, confirmed that it sold 5.5 million shares valued at $158 million in HP Inc. The regulatory filing did not disclose the reasons for the disposal of the shares by the legendary investor.
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Berkshire Hathaway now has a $3.27 billion stake in HPQ, based on the regulatory filing with the US Securities and Exchange Commission (SEC). HP's share price has fallen 19% since Berkshire revealed an unexpected $4.2 billion stake in the California-based company in April 2022.Â
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HP had been separate from the former Hewlett-Packard for seven years during Buffett’s unexpected investment in 2022. At the time, there were signs that HPQ was losing market shares in the personal computers and printers industry, and the trend has continued to date.
Therefore, it is no wonder that the HP Inc. share price has fallen to its current level of around $27.82. The company’s shares rose 14.8% the following day after Buffett’s investment to trade at $40.06. The shares are now down 30.55% from that high.
There has been a slew of bad news coming from HP, including the fact that it recently lowered its forecast for the full-year profit as it deals with a year-long slump in personal computers and slower demand from China.
On Monday, The company announced that it had material weaknesses in its controls over financial reporting, which related to one of its customers and a payment application for some sales incentive programs.
Most investors monitor what Warren Buffett does, and any time he announces a new investment in a company, its stock price tends to go higher. In contrast, each time he announces that he has sold some stock, we expect the company’s stock to fall in tandem with the announcement.
Therefore, what happened recently to HPQ stock is not unique, as it was a typical market reaction to a Buffet stock sale.
HP Inc (HPQ) stock price.
The HP Inc (HPQ) stock price was down 0.32% premarket, bringing its total weekly losses to 6.61%.
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