Warren Buffet is Selling Shares of This IT Stock
Warren Buffet’s Berkshire Hathaway (BRK/B:US) disclosed yesterday after market hours that it slashed its stake in PC maker HP Inc (HPQ:US) by 0.5%.
HPQ shares fell nearly 5% in early Thursday trade.
Berkshire Hathaway sold approximately $158.5 million worth of shares in HPQ. The filling showed three transactions, totaling around 5.5 million shares valued at about $158.5 million.
Following these trades, Berkshire now holds an 11.7% stake in HPQ.
Buffett’s actions come after HPQ slashed its full-year profit outlook to $3.29 from the prior $3.40, falling below the expected $3.34. Cash flow is now seen at $3 billion for the full year, down from the previous $3.25 billion.
For this quarter, HP Inc. said it expects to report adjusted EPS of $0.91 (up or down $0.06).
For the third quarter, the company reported adjusted EPS of $0.86. Revenue fell almost 10% on an annual basis to $13.2 billion, while analysts were looking for a number closer to $13.4 billion.
"While we expect another quarter of sequential growth in Q4, the external environment has not improved as quickly as anticipated and we are moderating our expectations as a result," CEO Enrique Lores said.
"We remain confident in our ability to drive long-term growth and value creation as we focus on the things we can control and make continued progress against our Future Ready plan.”
Congress members Ro Khanna and Daniel Goldman were trading HPQ shares this year.
