Berkshire Hathaway Inc., led by Warren Buffett, recently divested itself of 5.5 million shares of HP Inc., as indicated in a recent filing. The sales unfolded over the course of the week, with Berkshire unloading nearly 939,000 HP shares on Monday at an average price of $29.59, followed by the sale of 1.7 million shares on Tuesday at an average price of $29.07, and a further disposal of 2.9 million shares on Wednesday at an average price of $28.40. The cumulative value of these transactions amounted to approximately $158 million.
Even after these divestitures, Berkshire Hathaway maintains ownership of 115.5 million HP shares, valued at nearly $3.3 billion based on the closing price of $28.33 as of Wednesday. This positions Berkshire's current holdings at approximately 11.7% of HP's outstanding shares.
Berkshire Hathaway initially disclosed its significant stake in HP in April 2022, when it held 120.95 million shares valued at $4.2 billion, acquired at prices ranging from $34 to $37 per share.
The decision to reduce HP shares comes amidst a challenging quarter for the company, as noted by Amit Daryanani, an analyst at Evercore ISI. HP recently revised down its full-year earnings and free-cash-flow expectations, citing macroeconomic softness and ongoing channel inventory overhang as contributing factors. The personal computer (PC) market has faced sluggish growth after experiencing a resurgence during the pandemic.
Analysts and investors are closely monitoring Berkshire Hathaway's future actions, speculating whether further ownership reductions may occur in the coming days and weeks. There is particular interest in whether Warren Buffett will wait until the forthcoming analyst day to announce any additional changes to the company's ownership portfolio.
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