HP shares hit a record on Thursday after Warren Buffett’s Berkshire Hathaway revealed it bought an 11.4% stake valued at about $4.2 billion. in the maker of personal computers and printers.
Berkshire said the day before it owned nearly 121 million shares of HP, including 11.1 million it bought this week.
HP shares were up around 15% to $40.19 this afternoon after hitting a record $40.50.
Separated in 2015 from the former Hewlett-Packard, HP has benefited from increased demand for technology as people spend more time working and studying from home.
The company last month agreed to buy audio and video accessories maker Poly, formerly known as Plantronics, for $1.7 billion.
Last month, Berkshire said it had committed about $22 billion to major new investments. That includes a 14.6% stake in Occidental Petroleum and an $11.6 billion buyout of insurance company Alleghany, Berkshire’s biggest buyout since 2016.
Buffett’s company also has dozens of businesses, including Geico auto insurance and the BNSF railroad, and ended 2021 with a $161.2 billion stake in Apple.
Berkshire did not immediately respond to requests for comment. Last year, it bought back US$ 27 billion (R$ 128 billion) of its own shares.
Mark Cash, an analyst at Morningstar, said HP may appeal to Berkshire because it is aggressively returning capital to shareholders through share buybacks and higher dividends.
“HP operates in markets that are challenging to grow at high rates, so focusing on margins and returns is the best way to reward shareholders,” said Cash. “Within technology, HP can be considered a value bet.”
I have over 8 years of experience in the news industry. I have worked for various news websites and have also written for a few news agencies. I mostly cover healthcare news, but I am also interested in other topics such as politics, business, and entertainment. In my free time, I enjoy writing fiction and spending time with my family and friends.
