HP Inc. (NYSE:HPQ), a prominent $32 billion technology hardware company, saw its Chief People Officer Kristen M. Ludgate sell a significant portion of her holdings in the company, according to a recent SEC filing. Ludgate sold 74,356 shares of HP Inc. common stock on December 13, 2024, at a weighted average price of approximately $34.43 per share. According to InvestingPro analysis, HP's stock is currently trading near its Fair Value. The total value of the transaction amounted to $2,560,077. Following this sale, Ludgate retains ownership of 56,169 shares in the company. The shares were sold in multiple transactions, with prices ranging from $34.35 to $34.485. The company maintains strong shareholder returns with a 3.35% dividend yield and has maintained dividend payments for 54 consecutive years. InvestingPro subscribers can access 10+ additional insights about HP's financial health and market position in the comprehensive Pro Research Report.
In other recent news, HP Inc. has experienced several notable developments. HSBC downgraded HP Inc.'s stock from Buy to Hold due to a weaker-than-expected outlook for Q1FY25 and rising commodity costs, adjusting the price target to $38. Significant commodity cost pressures within the PC segment were cited as a key factor negatively affecting HP's operating margin. TD Cowen, while maintaining a Hold rating, increased its price target on HP shares to $39.00, based on fiscal year 2025 earnings per share (EPS) outlook and free cash flow (FCF) growth expectations. Citi maintained a Neutral rating but reduced its price target from $37.00 to $36.50, reflecting a slower than anticipated recovery in the PC market.
HP reported a 2% year-over-year rise 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. 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. These updates serve as a barometer for HP's near-term financial outlook, with investors and market watchers closely monitoring HP's performance in the upcoming quarters.
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