Berkshire Hathaway recently sold 3.1 million shares of HPInc. for $80 million, which resulted in their stake in the company dropping just below 10%. This information was disclosed in a form 4 filing with the Securities and Exchange Commission.
At present, Berkshire Hathaway holds a 9.9% stake in HP with 97.9 million shares, valued at $2.6 billion based on HP’s closing price. The shares saw a slight increase of 0.7% to $26.23 during the session. Berkshire sold the stock at an average price of $26.20.
Because Berkshire held over 10% of the company, any sales or purchases of HP stock needed to be disclosed within two business days. However, now that they have fallen below the threshold, they will no longer be required to promptly disclose any future transactions.
Investors will have to wait until mid-February, when the company reports its equity investments as of December 31, 2023, to gain a fresh understanding of Berkshire’s current HP holdings.
With Berkshire reducing its stake in HP by nearly 20% in the past month, there is uncertainty regarding Berkshire CEO Warren Buffett’s plans for further reductions, as he has done with other holdings like U.S. Bancorp and Bank of New York Mellon over the past year.
Berkshire initially acquired its HP stake in early 2022 and these recent sales mark the first since completing their stock purchase in April of the same year. Prior to these sales, Berkshire held approximately 120 million shares.
In recent years, Berkshire has exhibited greater activity in buying and selling stocks within their equity portfolio compared to its past practices.
Based on estimates, it is likely that Berkshire incurred a loss on the sale of HP stock due to its low purchase price in the $30s range.
