HPQ - HP Inc.
| Previous Close | 22.64 |
| Open | 22.56 |
| Bid | 22.55 x 800 |
| Ask | 22.56 x 4000 |
| Day's Range | 22.51 - 22.77 |
| 52 Week Range | 15.93 - 24.09 |
| Volume | 4,095,265 |
| Avg. Volume | 10,218,501 |
| Market Cap | 32.842B |
| Beta (5Y Monthly) | 1.55 |
| PE Ratio (TTM) | 10.92 |
| EPS (TTM) | 2.07 |
| Earnings Date | Feb 23, 2020 |
| Forward Dividend & Yield | 0.70 (3.11%) |
| Ex-Dividend Date | Mar 09, 2020 |
| 1y Target Est | 21.09 |
- Barrons.com
HP Issues Poison Pill in Latest Move to Fend Off Unsolicited Xerox Bid
HP is widely expected to once again reject the Xerox bid on Monday when the PC and printer company reports earnings for its January quarter.
- Reuters
Xerox to press ahead despite HP's poison pill plan against takeover offer
"Despite the HP board's intention to deny shareholders the chance to choose for themselves, we will press ahead with our previously announced tender offer and electing our slate of highly qualified director candidates," Xerox said. HP on Thursday said the implementation of the stockholder rights plan, which has a one-year expiration period, aims to stop investors from amassing more than 20% stake in the company. Xerox said in January it plans to nominate 11 independent candidates to HP's board.
- ACCESSWIRE
INVESTOR ALERT - HP Inc. (HPQ) - Bronstein, Gewirtz & Grossman, LLC Notifies Shareholders With Losses Exceeding $100K of Class Action and Lead Plaintiff Deadline: April 20, 2020
Such investors are encouraged to join this case by visiting the firm's site: www.bgandg.com/hpq. This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934. The complaint alleges that throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that material adverse information.
- Benzinga
Benzinga Pro's Top 5 Stocks To Watch For Fri., Feb. 21, 2020: PEP, SDGR, ZS, DPW, HPQ
Benzinga Pro's Stocks To Watch For Friday Pepsi (PEP) - Pepsi shares were quiet Friday morning amid a warning from Coca-Cola (KO) related to the coronavirus outbreak. While Coke reaffirmed its FY20 ...
- Reuters
HP adopts poison pill after Xerox's buyout attempts
Xerox recently raised its offer earlier this month by $2 to $24 per share, following several rejections of its previous buyout offers by the PC maker. The implementation of the stockholder rights plan, which has a one-year expiration period, aims to stop investors from amassing more than 20% stake in the company. "The rights will not prevent a combination of HP with another business, but should encourage Xerox (or anyone else seeking to acquire the Company) to negotiate with the Board prior to attempting to impose some combination that is not in the best interests of the HP shareholders," HP said in its statement.
- PR Newswire
Kessler Topaz Meltzer & Check, LLP Files A Shareholder Class Action Lawsuit Against HP Inc. For Violations Of Federal Securities Laws
The law firm of Kessler Topaz Meltzer & Check, LLP announces that the firm has filed a securities fraud class action lawsuit against HP Inc. (NYSE: HPQ) ("HP") on behalf of investors who purchased or acquired HP common stock between February 23, 2017 and October 3, 2019, inclusive (the "Class Period"). This action, captioned Electrical Workers Pension Fund, Local 103, I.B.E.W. v. HP Inc., et al., Case No. 3:20-cv-01260, was filed in the United States District Court for the Northern District of California.
- Bloomberg
Icahn Suggested HP Buy Xerox With Offer About to Go Public
(Bloomberg) -- Xerox Holdings Corp.’s largest shareholder made a suggestion as the printer maker was preparing to go public with its takeover offer for HP Inc. in November: buy us instead.Activist investor Carl Icahn raised the idea of HP acquiring Xerox for $45 a share in a phone call with HP Chief Executive Officer Enrique Lores in November, according to people familiar with the matter. HP executives viewed the proposal as over-valuing Xerox and decided not to pursue it, said the people, who asked to not be identified because the matter isn’t public.Icahn, who owns about 11% of Xerox and 4.3% of HP, continues to push publicly for a tie-up.Icahn on Thursday said he recalled the conversation with Lores in November but didn’t want sell his Xerox stake.“I certainly did not offer my stock in Xerox in that discussion or, for that matter, in any discussion,” he said in an interview. “Frankly, I am getting tired of anonymous statements that keep popping up alleging that my stock in Xerox is for sale, which couldn’t be further from the truth, because I believe so strongly in the synergies that exist in a combination between Xerox and HP and I certainly want to own a piece of those synergies.”Icahn said, as a large shareholder in both companies, he was fully supportive of Xerox’s offer for HP and Xerox’s Chief Executive Officer John Visentin, who he said should run the combined company.Peace, War“I do believe peace is better than war and therefore I would support a consensual deal if the boards presented an acceptable one to shareholders,” he said. “The make-up of the board or who is chairman is not nearly as important as who the management team of the company is. In this case, to garner the great synergies that exist, it is of paramount importance that John Visentin and his team are the surviving management of the combined company.”He said he wouldn’t support a consensual deal if that was not the case.Representatives Xerox and HP didn’t immediately respond to a request for comment.Rights PlanHP on Thursday adopted a shareholder rights plan that would make Xerox’s takeover more difficult to carry out.The move came ahead of a crucial week for the takeover tussle, when HP is preparing to outline a plan for self-improvement in response to Xerox’s $34 billion takeover campaign.HP is preparing to announce that it will take on new debt to release billions of dollars to shareholders by acquiring its own shares and paying out special dividends, the people said. The exact size and timing of the buybacks and dividends aren’t clear.The move follows criticism from HP that Xerox’s proposal depends on it leveraging the larger company’s balance sheet to fund a takeover. Xerox’s $24 a share offer would be funded largely by new debt.With borrowings of $5.1 billion, HP had a total debt-to-earnings ratio of 1.1 times for the 12 months ending Oct. 31, according to data compiled by Bloomberg.Cost-Saving PushHP’s plans will also include a detailed cost-saving push, the people said.The measures are aimed at addressing shareholders ahead of a vote later this year where Xerox is trying to replace the board. One of the people said that the decision to return capital to shareholders was the result of conversations with some of HP’s largest investors who had expressed a desire for the company to use its balance sheet more aggressively.HP intends to disclose the details of its plan on Feb. 24 when it reports earnings, the people said. The company had said it planned to respond to Xerox’s planned tender offer on that date.HP rose about 1% to close at $22.64 on Thursday, giving the company a market value of about $32.9 billion. Xerox was little changed at $36.78, giving it a market value of about $8 billion.\--With assistance from Nico Grant and Michael Hytha.To contact the reporters on this story: Ed Hammond in New York at ehammond12@bloomberg.net;Scott Deveau in New York at sdeveau2@bloomberg.netTo contact the editors responsible for this story: Elizabeth Fournier at efournier5@bloomberg.net, Matthew Monks, Liana BakerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- Bloomberg
HP Adopts Shareholder Rights Plan to Slow Xerox Takeover Bid
(Bloomberg) -- HP Inc., fighting off a hostile acquisition bid by Xerox Holdings Corp., adopted a shareholder rights plan that would make the takeover more difficult to carry out.If a person or group acquires 20% or more of HP’s stock, the plan would let other shareholders boost their voting power and dividends, HP said Thursday in a statement.The plan “guards against coercive tactics to gain control without paying all shareholders an appropriate premium for that control,” the company said. The program wouldn’t block a merger or takeover, but would “encourage Xerox (or anyone else seeking to acquire the company) to negotiate with the board,” the Palo Alto, California-based computer maker said.Xerox has said it will launch a tender offer “on or around March 2” for HP shares valued at $24 in cash and stock. For each HP share, a holder would get $18.40 in cash and 0.149 Xerox shares. The offer won’t be subject to any conditions related to financing or due diligence, Xerox said. HP has promised a full response on Feb. 24 when it reports earnings and exits a quiet period. Norwalk, Connecticut-based Xerox already had started a proxy fight, last week nominating 11 candidates for HP’s board to help close the deal.“As we have previously said, we are very concerned about Xerox’s aggressive and rushed tactics, and any process that is not based on full information is a threat to our shareholders,” Chip Bergh, HP’s chairman, said in the statement.The shareholder rights plan “works by imposing a significant penalty upon any person or group that acquires 20% or more of the outstanding shares of HP common stock without the approval of the Board,” HP said in a filing.HP’s shares were little changed in extended trading after closing Thursday at $22.64.(Updates with additional comments and details beginning in the fourth paragraph.)To contact the reporter on this story: Nico Grant in San Francisco at ngrant20@bloomberg.netTo contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Andrew Pollack, Anne VanderMeyFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- GlobeNewswire
HP Adopts Limited Duration Shareholder Rights Plan
The Board of Directors of HP Inc. (HPQ) today adopted a shareholder rights plan and declared a dividend distribution of one preferred share purchase right on each outstanding share of HP common stock. The Board adopted the rights plan following the announcement by Xerox Holdings Corporation that Xerox intends to commence a tender offer to acquire all of the outstanding shares of HP common stock. HP has previously said that on February 24, when out of its quiet period, HP will share additional information about its plan to drive sustainable long-term value for its shareholders, including through the execution of the Company’s multi-year strategic and financial plan and the deployment of its strong balance sheet; and that HP wants its shareholders to have full information on the Company’s earnings and the value inherent in the Company before responding to Xerox’s February 10 press release.
- Business Wire
EQUITY ALERT: ROSEN, A TOP RANKED LAW FIRM, Announces Filing of Securities Class Action Lawsuit Against HP Inc. – HPQ
Rosen Law Firm, a global investor rights law firm, announces the filing of a class action lawsuit on behalf of purchasers of the securities of HP Inc. (NYSE: HPQ) between February 23, 2017 and October 3, 2019, inclusive (the "Class Period"). The lawsuit seeks to recover damages for HP investors under the federal securities laws.
- ACCESSWIRE
INVESTOR ALERT - HP Inc. (HPQ) - Bronstein, Gewirtz & Grossman, LLC Notifies Investors With Losses Exceeding $100K of Class Action and Lead Plaintiff Deadline: April 20, 2020
Such investors are encouraged to join this case by visiting the firm's site: www.bgandg.com/hpq. This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934. The complaint alleges that throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that material adverse information.
- GlobeNewswire
HP Joins Initiative to Establish Industry-Standard Benchmarks for Printer Security
HP Inc. today announced its commitment to driving more stringent industry standards for printer security. As part of this effort, HP has joined the Buyers Lab (BLI) Security Validation Testing program for MFPs and printers.
- Zacks
HP (HPQ) Set to Report Q1 Earnings: What's in the Cards?
HP's (HPQ) first-quarter fiscal 2020 performance is likely to have benefited from increasing demand in the commercial PC market. However, weakness in the Printing business might have been a headwind.
- Zacks
HP (HPQ) Reports Next Week: Wall Street Expects Earnings Growth
HP (HPQ) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
- Reuters
Xerox courts HP shareholders as takeover battle heats up
The charm offensive comes after Xerox raised its cash-and-stock bid for HP last week by $2 to $24 per share ahead of a tender offer it plans to launch in early March. It is also asking HP shareholders to replace HP's board directors with Xerox's nominees at the company's annual shareholder meeting later this year. It told investors last week it wants them to have "full information" on the company before responding publicly to Xerox.
- GuruFocus.com
Seth Klarman's Top 4th-Quarter Trades
The Baupost Group invests in HP and Eldorado, sells out of Takeda Continue reading...
- Barrons.com
Hedge-Fund Investor Dan Loeb Bought Stock in Amazon and 2 More Companies
The sometimes activist investor is known for recently pushing for changes at Campbell Soup and Nestlé.
- GlobeNewswire
HP Recognized for Design Excellence with 12 iF DESIGN 2020 Awards
HP Inc. is a winner of this year’s iF DESIGN AWARD, the world-renowned design prize. The winning 12 products highlight the company’s innovative portfolio spanning Personal Systems and Print. Each year, the world’s oldest independent design organization, Hannover-based iF International Forum Design GmbH, organizes the iF DESIGN AWARD.
- Barrons.com
HP Hints It Won’t Support Xerox’s Higher Bid. A Stock Buyback Is Looking Likely.
Something is brewing at HP, and there are hints that Xerox might not like what the company has in mind.
- Bloomberg
Xerox Mimics Icahn’s Pugnacity in Pursuit of HP
(Bloomberg Opinion) -- As a general rule, I’m not a big fan of corporations being guided by corporate raiders, a.k.a. shareholder activists. They tend to rely on financial engineering to boost the stock price; cut back on “expenses” like customer service and research and development; and run for the exits when they see the roof caving in.But Xerox Holdings Corp. may be the exception. The company’s biggest shareholder is the activist of activists, 83-year-old Carl Icahn, who controls around 11% of the stock. The chairman, Keith Cozza, is the chief executive officer of Icahn Enterprises LP, Icahn’s holding company. One board member, Nicholas Graziano, is a portfolio manager with Icahn Capital LP, Icahn’s hedge fund. Another is John Christodoro, a former managing partner at Icahn Capital.And John Visentin, the Xerox CEO, while not an Icahn guy the way the other three are, clearly sees eye to eye with the big dog. He got the job in no small part because he agreed with Icahn that Xerox’s planned merger with Fujifilm Holdings Corp. was a bad idea. When Xerox pulled out of the deal in May 2018 — and agreed to put Icahn’s allies on the board — Visentin, who had backed away from negotiating with the previous board, was installed as the new boss.It’s hardly news that Icahn is an aggressive investor. What is news is that under Visentin, Xerox — lumbering, old-school Xerox — has become just as aggressive. He has managed to breathe new life into the 113-year-old printer company. He’s doing the share buyback thing, but he’s also streamlined the company, increased free cash flow and consistently beat the Street’s expectations even as revenue has continued to decrease gradually. According to Bloomberg data, the share price rose 87% last year, a number not seen in many years.Of course, the most visible manifestation of this new aggressiveness is Xerox’s effort to buy its much larger rival HP Inc. The attempt, which became public in November — soon after an unimpressive HP analysts’ meeting — heated up on Monday when Xerox raised its offer to $24 a share from $22, bringing its bid to $35 billion. Talk about the minnow trying to swallow the whale. Xerox has $9 billion in revenue. HP has $58 billion. Xerox has a market cap of $8 billion. HP has a market cap of $31 billion. Not all that long ago, an audacious move like this by Xerox would have been unthinkable.And HP? Nearly eight decades ago, it was the original Silicon Valley startup, the avatar of the tech industry. But by the 1980s, it had congealed in its own bureaucracy, and a kind of paralysis set in, compounded by some well-publicized gaffes. In 2015, in an effort to create a more nimble culture, the board split the company in two. Hewlett Packard Enterprise got the software and services side of the company, while HP kept printers and laptops. Last year, HP’s stock was down 21% before Xerox announced its intentions in early November.The essential problem is that the printer business is in a slow but steady decline — and like newspapers, cable television and many other businesses, that decline is likely irreversible. For HP, the decline is made worse because it makes most of its money in the printer division by selling expensive ink cartridges — and many consumers buy less expensive cartridges made by competitors.At the analyst meeting in October, HP announced that it would eliminate up to 9,000 jobs by 2022, saving $1 billion, and would turn to a subscription model to revive its flagging cartridge business. Analysts were unimpressed, and in the aftermath of the meeting, the stock dropped 9.4%In Icahn-like fashion, this was exactly the moment Visentin pounced. Xerox, of course, has the same problem as HP — its printer business is declining — and it doesn’t have other businesses, like laptops, to soften the blow. The shrinking of the printer business has convinced Visentin that industry consolidation is inevitable; in a statement at the time of the original offer, Xerox said that “our industry is overdue for consolidation, and those who move first will have a distinct advantage.”In the materials it has provided to HP shareholders, Xerox claims that a merger will have synergies worth $2 billion and will generate nearly $6 billion in free cash flow. And Visentin plans to use that money less to manage the decline than to buy smaller, more innovative companies while investing in research and development that will allow the company to chart a new course that will generate growth and profits.There is no way of knowing whether Visentin can pull this off if he lands HP, though his track record so far at Xerox should give shareholders hope. Indeed, he is so clearly right about the first-mover advantage of consolidation that what HP really ought to do is turn around and make a tender offer for Xerox, which would require a lot less debt. And then it should install Visentin as CEO.Instead, HP has reverted to form, contending that the Xerox bid is inadequate, that its financing is shaky and generally avoiding coming to grips with reality. But sometime soon, HP will have to set the date for its annual meeting, and at that point its shareholders will have a say in the matter. Xerox, ever the aggressor, is proposing a slate of directors to replace HP’s current board.I know one big shareholder who will vote for the Xerox slate. A few months ago, Icahn bought 4% of HP’s stock. HP’s odds of going it alone much longer aren’t good at all.To contact the author of this story: Joe Nocera at jnocera3@bloomberg.netTo contact the editor responsible for this story: Daniel Niemi at dniemi1@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Joe Nocera is a Bloomberg Opinion columnist covering business. He has written business columns for Esquire, GQ and the New York Times, and is the former editorial director of Fortune. His latest project is the Bloomberg-Wondery podcast "The Shrink Next Door."For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- Bloomberg
HP to Respond to Xerox’s $35 Billion Offer on Feb. 24
(Bloomberg) -- HP Inc. said it will respond to Xerox Holdings Corp.’s planned tender offer on Feb. 24, when the company reports earnings, again promising shareholders a path to boost the personal-computer maker’s value.“HP will share additional information about its plan to drive sustainable long-term value for its shareholders, including through the execution of the company’s multi-year strategic and financial plan and the deployment of its strong balance sheet,” the Palo Alto, California-based company said Tuesday in a statement.Xerox said Monday it will launch a tender offer “on or around March 2” with a bid of $24 per share in cash and stock, a $2 per share increase from an unsolicited takeover offer to HP’s board in November. For each HP share, a holder would get $18.40 in cash and 0.149 Xerox shares. The offer won’t be subject to any conditions related to financing or due diligence, Xerox said Monday. The printer maker has already begun a proxy battle for control of HP, nominating 11 directors to replace its rival’s board.Analysts project that HP will report profit, excluding some expenses, of 55 cents per share on revenue of $14.6 billion in the fiscal first quarter, according to data compiled by Bloomberg. That would mean a 1% reduction in sales compared with a year earlier, reflecting softer demand for the company’s ink supplies as consumers and businesses print less.Xerox also has struggled to cope with those changing market tastes, and last year announced plans to cut $640 million in expenses. Annual revenue declined 8% to $9.1 billion in 2019, with analysts projecting another 5% decrease this year.HP has said it has many routes to create value for shareholders that aren’t dependent on a combination with Xerox. Chief Executive Officer Enrique Lores, who has worked at the company for more than three decades, is still new to HP’s top job. Lores said he wants to make printing services, 3-D printing and high-end computers a larger part of HP’s business, and would oversee as much as a 16% reduction in the company’s workforce in a bid to cut costs. Xerox CEO John Visentin has criticized this plan as a piecemeal approach that won’t be as beneficial to HP as a combination.(Corrects date for the planned tender offer in the third paragraph.)To contact the reporter on this story: Nico Grant in San Francisco at ngrant20@bloomberg.netTo contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Andrew PollackFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
