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HP stock hits record after Warren Buffett announces his stake

HP shares rose to a record high Thursday after Berkshire Hathaway announced it had acquired an 11.4% stake in the PC and printer maker from Warren Buffett, worth about $4.2 billion.

Berkshire announced Wednesday night that it owns nearly 121 million HP shares, including 11.1 million purchased this week.

Shares of HP rose $5.28, or 15%, to $40.19 in early trade on Thursday after previously hitting a record $40.50.

HP, which was spun off from the former Hewlett-Packard in 2015, is a traditional tech stock that has benefited from increased demand as people spend more time working from home and being educated.

The Palo Alto, California-based company last month agreed to buy audio and video equipment maker Poly, once known as Plantronics, for $1.7 billion.

Buffett has until recently struggled to deploy more of the $146.7 billion in cash his Omaha, Nebraska-based conglomerate had amassed, citing high market valuations and competition from private equity and other investors.

Warren Buffett
Last month, Berkshire said it had committed about $22 billion to big new investments.
WireImage

But last month, Berkshire said it had committed about $22 billion to big new investments.

These include a 14.6% interest in Occidental Petroleum Corp. and a purchase of insurer Alleghany Corp. $11.6 billion, Berkshire’s largest acquisition since 2016.

Buffett’s company also owns dozens of companies, including auto insurance company Geico and BNSF railroad, and ended 2021 with a $161.2 billion stake in iPhone maker Apple.

“Berkshire Hathaway is one of the world’s most respected investors and we welcome them as investors,” HP said in a statement.

HP logo
HP is a traditional tech stock that has benefited from increased demand as people spend more time working from home and being educated.
Picture Alliance via Getty Image

Berkshire did not immediately respond to requests for comment.

Morningstar analyst Mark Cash said HP could be attractive to Berkshire because HP is aggressively returning capital to shareholders through share buybacks and higher dividends.

“HP operates in markets that make it difficult to grow at higher rates (sustainably), so focusing on margins and returns is the best way to reward shareholders,” Cash said. “Within the technology industry, HP can be viewed as a value play.”

Berkshire bought back $27 billion of its own stock in 2021.

https://nypost.com/2022/04/07/hps-stock-hits-record-after-warren-buffett-discloses-stake/ HP stock hits record after Warren Buffett announces his stake

DUSTIN JONES

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