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Stephanie Liebman, the Global Controller at HP Inc. (NYSE:HPQ), recently sold 11,000 shares of the company's common stock. According to InvestingPro data, HP maintains strong shareholder returns with an attractive 3.55% dividend yield and has maintained dividend payments for 54 consecutive years. The sale, which took place on December 30, 2024, was executed at a weighted average price of approximately $32.50 per share, totaling $357,500. Following this transaction, Liebman retains direct ownership of 6,277 shares. Additionally, she holds 20 shares indirectly as a custodian for her daughter under the Uniform Transfers to Minors Act, though she disclaims beneficial ownership of these shares. With a P/E ratio of 11.47 and management actively buying back shares, InvestingPro analysis suggests HP is currently undervalued, offering additional insights through its comprehensive Pro Research Report covering 1,400+ top stocks.
In other recent news, HP Inc. has been subject to several changes in analyst ratings and price targets. HSBC downgraded HP's stock from Buy to Hold due to a weaker-than-expected outlook for the first quarter of Fiscal Year 2025 and rising commodity costs. Despite this, HSBC recognized strong secular drivers in the PC industry, such as the ongoing PC refresh cycle and the rising adoption of AI-enabled PCs.
TD Cowen, on the other hand, maintained its Hold rating on HP shares but increased its price target to $39.00, citing fiscal year 2025 earnings per share (EPS) outlook and free cash flow (FCF) growth expectations. However, the firm also noted weakening demand for personal computers and a projected decline in the Printing segment.
Similarly, 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. The firm also noted that HP's projected EPS for the year is slightly below consensus estimates, coming in at $3.60 at the midpoint.
As for recent earnings, 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 are the recent developments that investors should keep an eye on.
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