Shares of legacy technology giant HP Inc soared on Thursday morning after legendary investor Warren Buffett’s Berkshire Hathaway announced it had bought more than 104 million shares this month – becoming HP’s largest shareholder and marking the latest investment in a legacy stock crop.
At 10:30 AM EDT on Thursday, HP shares skyrocketed as much as 18% to over $ 41, the highest level of the stock since the split from enterprise-centric segment Hewlett-Packard Enterprise in 2015.
Accelerating the Morning Boost, Berkshire revealed in a series of regulatory filings on Wednesday evening that it held about 121 million HP shares – a roughly 11.5% stake valued at about 4 4.4 billion and বৃহস্পতিবার 5 billion after Thursday’s rise.
According to the filing, Berkshire, through various affiliates, held a more than 10% stake in the firm on Friday and piled up its investment every day this week, buying 11.1 million shares for about $ 398.5 million.
Shares of Berkshire, which did not immediately respond Forbes’ Request for comment, ticked down 0.5% to $ 514,545 on Thursday; They are 13% higher this year than the 6.6% loss for the S&P 500 and the 6% gain for HP.
Berkshire’s cash pile rose to record highs last year, and the investment firm has bought heavily this year as markets struggle in the face of rising interest rates and geopolitical tensions. Just last month, Berkshire announced that it would buy insurance company Allegani for 11.6 billion and invested nearly $ 1 billion in oil giant Occidental Petroleum, the best-performing stock in the S&P quarter. Its biggest holdings are Apple, American Express, Coca-Cola and Bank of America.
The main critic
On Thursday, Morgan Stanley analyst Eric Woodring downgraded HP shares and lowered its price target from $ 34 to $ 31, signaling a fall of about 25% from current levels. Woodring said the firm’s near-term prospects were uncertain because demand for personal computers appeared to be “eroded”. He predicts that shortages will eventually slow HP sales growth.
$ 63.5 billion. About 63% of the revenue HP posted in its most recent fiscal year came from computer sales.
The stock has just posted the worst quarterly since the Covid Market crash, but Buffett’s new favorite sector has logged ‘Meteoric Ascent’. (Forbes)
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