HP Inc shares reverse premarket losses, now up 5.2%

HP Inc shares reverse premarket losses, now up 5.2%

HP Inc. (NYSE: HPQ) shares have rebounded from premarket losses, currently trading up 5.2% at $29.54 as of the close on July 2, 2025. The stock has shown resilience following a mixed analyst outlook and recent earnings reports.

In the latest quarterly earnings, HP Inc. reported net revenue of $13.2 billion for the second quarter of fiscal 2025, up 3.3% year-over-year [2]. The company's Personal Systems segment saw a 7% increase in revenue, while Printing net revenue declined by 4%. Despite these mixed results, the company's free cash flow for the quarter was $2.6 to $3.0 billion, reflecting the impact of U.S. tariffs and associated mitigations.

Analysts have been mixed in their opinions on HP Inc. shares. Wells Fargo & Company and UBS Group have both downgraded their target prices, with Wells Fargo setting a "underweight" rating and UBS Group lowering their target to $26.00. However, several analysts maintain a "Hold" rating, with an average price target of $29.54 [1].

Redwood Investment Management LLC, one of the major institutional investors, reduced its holdings in HP Inc. by 12.5% in the first quarter, now owning 188,298 shares worth approximately $5.21 million. This reduction comes amid a broader trend of mixed investor sentiment, with some large investors increasing their stakes while others have decreased their positions [1].

HP Inc. also recently announced a quarterly dividend of $0.2894 per share, representing a 4.2% yield with a payout ratio of 44.79%. The dividend is scheduled to be paid on October 1, 2025, to stockholders of record on September 10, 2025 [1].

Despite the recent mixed performance and analyst ratings, HP Inc. continues to operate in a dynamic regulatory environment and has been proactive in adjusting its manufacturing footprint and cost structure. The company's focus on long-term sustainable growth and its ability to navigate macroeconomic uncertainties will be key factors to watch in the coming quarters.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-redwood-investment-management-llc-has-521-million-stock-position-in-hp-inc-hpq-2025-08-26/
[2] https://www.inkworldmagazine.com/breaking-news/hp-inc-reports-fiscal-2025-second-quarter-results/