hp stock price: HP shares climb 15% after Buffett reveals $4.2 billion stake

Shares of HP Inc hit a record high on Thursday after billionaire Warren Buffett’s Berkshire Hathaway Inc said it took an 11.4% stake valued at around $4.2 billion in the personal computer maker and of printers.

Berkshire disclosed in a regulatory filing late Wednesday that it owns nearly 121 million HP shares, including 11.1 million purchased this week.

Shares of HP closed up $5.15, or 14.8%, at $40.06, after hitting $41.46 earlier.

Company stock prices often rise when Berkshire discloses new stakes, seen as a stamp of approval from Buffett.

Berkshire doesn’t regularly invest in tech companies, though it ended 2021 with a $161.2 billion stake in Apple Inc. Buffett sees the iPhone maker as more of a consumer business than he can possibly get. to understand.

“Berkshire Hathaway is one of the most respected investors in the world and we welcome them as investors,” HP said in a statement.

Split in 2015 from the former Hewlett-Packard, HP is benefiting from increased demand as people spend more time working and being schooled at home.

The Palo Alto, Calif.-based company last month agreed to buy audio and video accessories maker Poly, formerly known as Plantronics, for $1.7 billion.

Buffett struggled to invest Berkshire’s cash, which totaled $146.7 billion at year-end, citing high valuations and competition from private equity and other investors.

But last month, the Omaha, Nebraska-based conglomerate said it had committed about $22 billion in major new investments.

These include a 14.6% stake in Occidental Petroleum Corp and an $11.6 billion purchase of insurer Alleghany Corp, Berkshire’s biggest acquisition since 2016.

Berkshire also owns dozens of companies, including Geico auto insurance and the BNSF railroad.

He did not immediately respond to requests for comment.

Morningstar analyst Mark Cash said HP may call on Berkshire because HP is aggressively returning capital to shareholders through share buybacks and higher dividends.

“HP operates in markets that struggle to grow (sustainably) at high rates, so focusing on margins and returns is the best way to reward shareholders,” Cash said. “In technology, HP can be seen as a value game.”

Berkshire repurchased $27 billion of its own stock in 2021.

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