Berkshire Hathaway recently completed its first sale of stock in HP Inc., the renowned maker of personal computers and printers. The conglomerate had previously accumulated a 12% stake in the company earlier this year.
According to a filing with the Securities and Exchange Commission, Berkshire Hathaway (Ticker BRK/A) sold 5.5 million shares of HP Inc. from Monday through Wednesday of this week. As a result, Berkshire Hathaway now holds 115.5 million shares of the company.
Based on the closing price of HP Inc. (Ticker HPQ) on Wednesday, Berkshire Hathaway's stake is currently valued at approximately $3.3 billion. However, HP stock experienced a decline of 2.1% on Wednesday, falling to $28.33. The sale of the 5.5 million shares was carried out at an average price of around $29, totaling approximately $160 million.
Berkshire CEO Warren Buffett prefers to handle stock transactions in the company's equity portfolio discreetly. However, due to holding more than 10% of HP Inc.'s stock, Berkshire had to disclose the HP sales within two business days. As a result, Berkshire's ownership of HP Inc. stands at around 11.7%, according to estimates.
Market observers will be keeping a close eye on whether Berkshire Hathaway continues to reduce its stake in HP Inc., which has been its approach with other bank stocks in recent quarters, including U.S. Bancorp (USB). Anticipating further sales, there may be potential concerns among investors, leading to potential pressure on HP stock in the coming days.
Estimates suggest that Berkshire likely incurred a small loss on the recent sale, considering the price at which it acquired the HP stock earlier this year. Berkshire's final purchases of HP shares occurred in April 2022.
It is worth noting that Berkshire Hathaway has increased its activity in trading stocks within its equity portfolio in recent years compared to previous periods.