HP Inc. (NYSE:HPQ)’s stock has gained more than 6% after the company posted mixed fiscal second quarter earnings on Wednesday, beating the Street’s estimates of adjusted earnings but falling short of revenue expectations. The Palo Alto based technology company, reported EPS of $0.41, better than the estimated $0.38. However, revenue in the quarter came in at $11.6 billion, less than the estimated $11.72 billion, showing 11% decline year over year. For the full year, HP expects its adjusted earnings to be in the range of $1.59 to $1.65, lower than the previous guidance of $1.69. In a statement, HP Inc (NYSE:HPQ)’s President and CEO Dion Weisler said that the company continues to move towards its long term goals. He said that HP achieved its operational objectives, expanded its strategic areas of business and came up with innovative products despite of the tough market condition.
Among hedge funds and other institutional investors, HP Inc. (NYSE:HPQ) shares haven’t seen a lot of action during the first quarter and overall, the hedge fund sentiment was unchanged. The stock was in 40 hedge funds’ portfolios at the end of March. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. However, a stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Xcel Energy Inc (NYSE:XEL), Zimmer Biomet Holdings Inc (NYSE:ZBH), and Ventas, Inc. (NYSE:VTR) to gather more data points.
In the 21st century investor’s toolkit there are a lot of formulas investors can use to value stocks. A couple of the best formulas are hedge fund and insider trading interest. We have shown that, historically, those who follow the best picks of the elite hedge fund managers can outpace their index-focused peers by a very impressive amount (see the details here).
With all of this in mind, we’re going to take a look at the latest action encompassing HP Inc. (NYSE:HPQ).
Of the funds tracked by Insider Monkey, Richard S. Pzena’s Pzena Investment Management has the biggest position in HP Inc. (NYSE:HPQ), worth close to $261 million, comprising 1.6% of its total 13F portfolio. Sitting at the No. 2 spot is AQR Capital Management, led by Cliff Asness, holding a $177.3 million position; the fund has 0.3% of its 13F portfolio invested in the stock. Some other peers that are bullish encompass John Overdeck and David Siegel’s Two Sigma Advisors, Charles de Vaulx’s International Value Advisers and Charles de Vaulx’s International Value Advisers.
On the next page, we are going to take a closer look at some funds that opted to exit their positions in HP Inc. (NYSE:HPQ) during the first quarter.