Warren Buffett (Trades, Portfolio), the legendary investor and chairman of Berkshire Hathaway, has recently reduced his stake in HP Inc (HPQ, Financial). This article will delve into the details of this transaction, provide an overview of Buffett's investment philosophy and portfolio, and analyze HP Inc's performance and market position. We will also look at other gurus' investments in HP Inc.
Details of the Transaction
On October 3, 2023, Warren Buffett (Trades, Portfolio) reduced his holdings in HP Inc by 3.04%, selling 3,067,508 shares at a price of $26.2 per share. This transaction had a -0.02% impact on Buffett's portfolio. After the transaction, Buffett holds 97,854,605 shares of HP Inc, which represents 0.74% of his portfolio and 9.90% of HP Inc's total shares.
Profile of Warren Buffett (Trades, Portfolio)
Known as "The Oracle of Omaha", Warren Buffett (Trades, Portfolio) is one of the most successful and respected investors in history. He studied under Benjamin Graham at Columbia University, who had a significant influence on his investment strategies. Buffett is the chairman of Berkshire Hathaway, which he transformed from a textile company into a major insurance conglomerate. His investment philosophy is based on value investing, an approach adapted from Benjamin Graham. Buffett seeks to acquire great companies trading at a discount to their intrinsic value and hold them for a long time. His top holdings include Apple Inc (AAPL, Financial), American Express Co (AXP, Financial), Bank of America Corp (BAC, Financial), Chevron Corp (CVX, Financial), and Coca-Cola Co (KO, Financial). His equity is valued at $348.19 billion, with the majority of his investments in the Technology and Financial Services sectors.
Overview of HP Inc
HP Inc, formerly known as Hewlett-Packard, is a giant in the PC and printing markets. The company has been focusing on these markets since it exited IT infrastructure in 2015 with the split from Hewlett Packard Enterprise. HP Inc has a broad and global customer base, with only one-third of sales coming from the U.S. The company completely outsources manufacturing and relies heavily on channel partners for its sales and marketing. As of October 6, 2023, the company's market capitalization is $25.92 billion, and its current stock price is $26.23. The company's PE percentage is 11.32, indicating that it is modestly undervalued according to GuruFocus's GF Valuation.
Analysis of HP Inc's Performance
HP Inc has a GF Score of 88/100, indicating good outperformance potential. The company's Financial Strength is ranked 5/10, while its Profitability Rank and Growth Rank are both 8/10. The company's GF Value Rank is 7/10, and its Momentum Rank is 10/10. HP Inc's Piotroski F-Score is 6, and its Altman Z score is 1.93. The company's cash to debt ratio is 0.18, and its interest coverage is 9.44.
Other Gurus' Investments in HP Inc
Other gurus who also hold shares in HP Inc include Dodge & Cox, Joel Greenblatt (Trades, Portfolio), and Jefferies Group (Trades, Portfolio). Berkshire Hathaway Inc, Warren Buffett (Trades, Portfolio)'s company, holds the most shares of HP Inc.
Conclusion
In conclusion, Warren Buffett (Trades, Portfolio)'s recent reduction in his stake in HP Inc is a significant move that may influence other investors. Despite this reduction, HP Inc remains a substantial part of Buffett's portfolio. The company's strong performance and potential for outperformance, as indicated by its high GF Score and ranks in profitability and growth, make it an attractive investment. However, investors should always conduct their own research and consider their investment goals and risk tolerance before making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
