Enrique Lores, President and CEO of HP Inc. (NYSE:HPQ), recently executed a significant stock sale as part of a pre-established trading plan. On December 9, Lores sold 137,094 shares of common stock at an average price of $36.45, amounting to a total transaction value of approximately $4.99 million. The transaction comes as HP, currently valued at $33.7 billion, trades at a P/E ratio of 12.4x and offers a 3.34% dividend yield. According to InvestingPro analysis, the stock is currently fairly valued.
In addition to the sale, Lores engaged in multiple transactions involving the exercise of stock options. On December 7, he acquired 169,612 shares of common stock through option exercises. The shares were acquired at a price range of $0.0 to $28.48, with a total transaction value of around $3.01 million. InvestingPro data reveals that HP management has been actively buying back shares, demonstrating confidence in the company's future. The company maintains a GOOD overall financial health score and has maintained dividend payments for 54 consecutive years.
Lores also engaged in transactions involving restricted stock units (RSUs). On December 7, he exercised options for 44,345, 64,333, and 60,934 RSUs, further increasing his holdings in HP stock.
Following these transactions, Lores holds 89,272 shares directly. Additionally, he maintains indirect ownership of 888,908 shares through a limited partnership.
In other recent news, HP Inc. has seen several key developments. HSBC downgraded HP's stock from Buy to Hold, citing a weaker-than-expected outlook for the first quarter of Fiscal Year 2025 and rising commodity costs. Similarly, TD Cowen maintained a Hold rating on HP shares but increased its price target to $39.00, based on free cash flow growth expectations for Fiscal Year 2025. Citi also maintained a Neutral rating on HP stock but reduced its price target from $37.00 to $36.50, reflecting a slower than anticipated recovery in the PC market.
HP Inc. reported a 2% year-over-year increase in Q4 2024 revenue and a 3% growth in non-GAAP EPS to $0.93. The company also generated $3.3 billion in free cash flow, nearly all of which was returned to shareholders, and increased its annual dividend by 5% to $1.16 per share. AI PCs, which accounted for 15% of Q4 shipments, are expected to rise to 25% in fiscal 2025. Despite a projected decline in the print market, HP anticipates growth in the commercial PC market to outpace that of the consumer segment.
These recent developments highlight HP Inc.'s strategic focus on AI integration and its commitment to leading in the future of work, as emphasized by CEO Enrique Loris. The company's outlook for fiscal 2025 predicts revenue and non-GAAP EPS growth, with a stronger performance anticipated in the latter half of the year.
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