Unusual Put Option Trade in HP Worth $107.85K

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On February 23, 2023 at 10:56:50 (ET) an unusually large $107.85K block of Put contracts in HP (HPQ) was sold, with a strike price of $26.00 / share, expiring in 85 days (on May 19, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.25 sigmas above the mean, placing it in the 92.59 percentile of all recent large trades made in HPQ options.

Analyst Price Forecast Suggests 2.93% Upside

As of February 23, 2023, the average one-year price target for HP is $29.93. The forecasts range from a low of $24.24 to a high of $38.85. The average price target represents an increase of 2.93% from its latest reported closing price of $29.08.

The projected annual revenue for HP is $57,802MM, a decrease of 8.23%. The projected annual EPS is $3.35, an increase of 8.72%.

What is the Fund Sentiment?

There are 1878 funds or institutions reporting positions in HP. This is a decrease of 30 owner(s) or 1.57% in the last quarter. Average portfolio weight of all funds dedicated to HPQ is 0.25%, a decrease of 4.01%. Total shares owned by institutions decreased in the last three months by 1.97% to 879,017K shares. The put/call ratio of HPQ is 1.04, indicating a bearish outlook.

What are large shareholders doing?

Berkshire Hathaway holds 104,476K shares representing 10.64% ownership of the company. No change in the last quarter.

Dodge & Cox holds 52,451K shares representing 5.34% ownership of the company. In it’s prior filing, the firm reported owning 54,439K shares, representing a decrease of 3.79%. The firm decreased its portfolio allocation in HPQ by 5.98% over the last quarter.

DODGX – Dodge & Cox Stock Fund holds 38,173K shares representing 3.89% ownership of the company. In it’s prior filing, the firm reported owning 39,722K shares, representing a decrease of 4.06%. The firm decreased its portfolio allocation in HPQ by 21.33% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 27,892K shares representing 2.84% ownership of the company. In it’s prior filing, the firm reported owning 27,409K shares, representing an increase of 1.73%. The firm decreased its portfolio allocation in HPQ by 19.36% over the last quarter.

Primecap Management holds 22,471K shares representing 2.29% ownership of the company. In it’s prior filing, the firm reported owning 23,553K shares, representing a decrease of 4.82%. The firm decreased its portfolio allocation in HPQ by 99.90% over the last quarter.

HP Declares $0.26 Dividend

On January 11, 2023 the company declared a regular quarterly dividend of $0.26 per share ($1.05 annualized). Shareholders of record as of March 8, 2023 will receive the payment on April 5, 2023. Previously, the company paid $0.26 per share.

At the current share price of $29.08 / share, the stock’s dividend yield is 3.61%. Looking back five years and taking a sample every week, the average dividend yield has been 3.12%, the lowest has been 2.15%, and the highest has been 5.14%. The standard deviation of yields is 0.61 (n=237).

The current dividend yield is 0.80 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.32. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.49%, demonstrating that it has increased its dividend over time.

HP Background Information
(This description is provided by the company.)

HP Inc. creates technology that makes life better for everyone, everywhere. Through our product and service portfolio of personal systems, printers and 3D printing solutions, we engineer experiences that amaze.

This article originally appeared on Fintel

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