By
Steve Muchoki
April 25th, 2024
Berkshire Hathaway has invested approximately $4.2 billion in HP.
HP Inc (NYSE: HPQ) shares closed Thursday trading at $40.16, up 14.75 percent from the day’s opening price. The gains extended during the after-hours with approximately 0.25 percent as of 7.59 pm EDT. After a year of consolidation, HP shares printed a new all-time high on Thursday at $41.47. Reportedly, the gains on Thursday materialized after Berkshire Hathaway Inc Cl A (NYSE: BRK.A) announced an 11.4 percent stake in the company.
The Warren Buffett-backed company now owns approximately 120.9 million HP shares according to an SEC filing. These shares were purchased in multiple transactions at prices ranging from $35.7400 to $36.6775.
Notably, Berkshire Hathaway has invested approximately $4.2 billion in HP. However, following Thursday’s spike, the stake has grown to approximately $4.8 billion. Thereby representing a growth of approximately $600 million in a single day.
This is not the first bet on technology that Berkshire Hathaway has made in the recent past. The company is reportedly the largest Apple Inc (NASDAQ: AAPL) shareholder, with over $150 billion at stake.
In the past two years, there has been a notable spike in demand for PC devices following the coronavirus pandemic. Although HP and Apple are rivals in the market, they are majorly backed by the same investor.
Nonetheless, the demand for PC products is expected to sustain in the coming years. Moreover, people around the world have significantly transitioned to remote learning and working.
HP Shares and the Market Outlook
HP shares have generally been on a winning streak for the past year. According to market analytics provided by MarketWatch, HPQ stock has gained approximately 23.72 percent in the past year. Additionally, the company’s stock market has gained approximately 6.34 percent and 10.82 percent YTD and the past one month respectively through Thursday.
Notably, the company has a market valuation of approximately $36.77 billion with 1.08 billion shares outstanding. In the past 52 weeks, HPQ shares have ranged between 26.11 and 41.47.
Having been rated 19 times, HPQ shares received an average recommendation of Hold. Additionally, the 19 ratings gave the company an average price target of $37.69. Whereby the company surpassed the mark on Thursday.
Earlier this year, the company announced fiscal 2022 first-quarter net revenue of $17.0 billion, up 8.8 percent from the prior-year period.
“We once again delivered strong top and bottom-line results with record revenue driven by strong demand and our leadership in hybrids,” said Enrique Lores, HP President, and CEO.