Alex Cho, President of Personal Systems at HP Inc (NYSE:HPQ), recently sold 10,298 shares of the company’s common stock. The shares were sold at a price of $34.32 each, amounting to a total transaction value of $353,427. Following this transaction, Cho holds 64,676 shares in HP Inc. The sale was conducted under a pre-arranged trading plan, established on March 21, 2024, in compliance with Rule 10b5-1. Despite recent insider selling, HP maintains a GOOD financial health score according to InvestingPro, with a P/E ratio of 12.8 and an attractive 3.3% dividend yield. The company's management has been actively buying back shares, one of 12+ valuable insights available on InvestingPro.
In other recent news, HP Inc. has been the subject of several analyst adjustments following its Q4 2024 earnings report. HSBC downgraded the company's stock from Buy to Hold, citing a weaker-than-expected outlook for 1QFY25 and rising commodity costs. TD Cowen, while maintaining a Hold rating, increased its price target on HP shares to $39.00, largely due to the company's free cash flow growth expectations for FY25.
Citi also 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. These recent developments follow HP's reporting of 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, almost all of which was returned to shareholders.
HP's AI PCs, accounting 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 developments highlight the company's strategic focus on AI integration and commercial markets.
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