HP Inc. (HPQ) -) shares moved firmly higher in early Tuesday trading following another stock stale from billionaire investor Warren Buffett's Berkshire Hathaway.
The higher move was linked to a double upgrade from Bank of America, which boosted its rating on the stock to 'buy' from 'underperform' and lifted its price target by $8 to $33 per share.
The BofA report, however, followed Securities and Exchange Commission filings late Monday that showed that Buffett dumped another 5.1 million shares in the PC and peripherals maker between September 28 and October 2, valued at around $131.3 million.
That followed sales of around $130 million, or 4.8 million shares, last last month, and 160 million, or 5.5 million shares, over the two-day period that ended on Sept. 13.
Collectively, the sales have reduced Buffett's stake – which he began accumulating in the spring of 2022 – to around 100.19 million shares, or 10.2% of HP's outstanding float.
SEC rules dictate that investors with a holding of more than 10% in any particular entity must disclose transactions on an ongoing basis, whereas holdings under 10% can be updated on a quarterly basis.
HP lowered its full-year profit forecast by as much as 15 cents a share, to a new rate of between $3.30 and $3.35 per share in late August following a muted third-quarter earnings report that included a near 10% decline in revenue linked to ongoing weakness in China and cautious corporate IT spending plans.
"The external environment has not improved as quickly as anticipated and we are moderating our expectations as a result," Chief Executive Enrique Lores told investors on a conference call on August 29.
HP shares were marked 2.36% higher in early afternoon trading Tuesday to change hands at $26.28 each, a move that would trim the stock's six-month decline to around 11.5%.
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