Where the HP Inc. (NYSE: HPQ) Stock Worth

On 29 Jan 2020, HP Inc. (NYSE: HPQ) changed -0.97% to recent value of $21.43. The stock transacted 8505480 shares during most recent day however it has an average volume of 11956.65K shares. It spotted trading -11.04% off 52-week high price. On the other end, the stock has been noted 34.53% away from the low price over the last 52-weeks.

HP Inc. (HPQ) recently confirmed that Xerox Holdings Corporation has reported its intent to nominate 11 candidates to stand for election to the Company’s Board of Directors at the HP’s 2020 Yearly Meeting of Stockholders (the “2020 Yearly Meeting”). Xerox has before submitted an unsolicited proposal to acquire HP, that the HP Board unanimously rejected.

HP issued the following statement:

We believe these nominations are a self-serving tactic by Xerox to advance its proposal, that importantly undervalues HP and creates meaningful risk to the detriment of HP shareholders.

The HP Board of Directors is committed to serving the best interests of all HP shareholders and to pursuing the most value-creating path. Value creation for HP shareholders is not dependent on a Xerox combination. There are numerous opportunities accessible to HP to drive sustainable long-term value. These include the execution of HP’s planned plan, and the deployment of its strong balance sheet for increased share repurchases of its importantly undervalued stock, and for value-creating M&A. Xerox’s proposed transaction attempts to use HP’s financial capacities for the benefit of Xerox shareholders.

We believe that Xerox’s proposal and nominations are being driven by Carl Icahn, and his large ownership position in Xerox means that his interests are not aligned with those of other HP shareholders. Because of Mr. Icahn’s ownership position, he would disproportionately benefit from an acquisition of HP by Xerox at a price that undervalues HP.

Mr. Icahn has meaningful influence over Xerox and its Board of Directors given this ownership position; the role he played in the appointment of Xerox’s current CEO, who is a former Icahn consultant; and the ties Mr. Icahn has to members of the Xerox Board, including Xerox’s Chairman, an Icahn employee.

The HP Board is unwavering in its commitment to HP shareholders and will continue to take all appropriate actions to advance and protect HP shareholders’ best interests.

HPQ has a gross margin of 19.00% and an operating margin of 6.60% while its profit margin remained 5.40% for the last 12 months. Its earnings per share (EPS) expected to touch remained 15.10% for this year while earning per share for the next 5-years is expected to reach at 3.44%.  The company has 1436.42M of outstanding shares and 1420.61M shares were floated in the market. According to the most recent quarter its current ratio was 0.8 that represents company’s ability to meet its current financial obligations. The price moved ahead of 0.54% from the mean of 20 days, 3.79% from mean of 50 days SMA and performed 9.27% from mean of 200 days price. Company’s performance for the week was -2.28%, 4.38% for month and YTD performance remained 4.28%.


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