Berkshire Hathaway Nearly Halves HP Stake to 5.2%
On Monday evening local time, regulatory documents showed that $Berkshire Hathaway(BRK.A)$ reduced its holdings of nearly half of its $Helmerich & Payne(HP)$ shares. The latest shareholding ratio was 5.2%, or approximately 51.5 million shares, with a market value of approximately $1.6 billion.
According to the announcement, the relevant shareholding reduction actions took place between the last announcement of shareholdings and the period ending on November 30.
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In early October, the company disclosed that it began selling $Helmerich & Payne(HP)$ for nine consecutive trading days in mid-September, reducing its shareholding to nearly 10%.
Berkshire still holds 51.5 million HP shares, which is worth about $1.6 billion based on Monday's closing price of $30.37. FactSet data shows that Berkshire remains HP's third-largest institutional shareholder, behind BlackRock and Vanguard Group.
After the news broke, HP's stock price fell more than 1% in after-hours trading on Monday.
Berkshire originally purchased HP in April 2022. Buffett, who has never been interested in technology stocks, once surprised the market.
At that time, Berkshire, controlled by Buffett, owned 120 million shares of HP. According to previous reports, Buffett’s holding cost is around $30.
Why sell $Helmerich & Payne(HP)$?
Analysts speculate that the sluggish PC market may be the main reason why stock investors are reducing their holdings of HP.
HP is still battling a slump in the PC market that has lasted more than a year. The company's Q3 quarterly report released last month showed that the company's revenue fell 6.5% year-on-year to $13.8 billion as the PC market failed to grow as expected and sales performed poorly in the fourth fiscal quarter.
In addition, HP's first-quarter profit guidance for next year was lower than Wall Street expectations.
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