On October 2, 2023, Enrique Lores, President and CEO of HP Inc (HPQ, Financial), sold 38,000 shares of the company. This move is part of a trend for the insider, who over the past year has sold a total of 76,000 shares and purchased none.
Enrique Lores is a seasoned executive with a long history at HP Inc. He has held various leadership roles within the company, including President of Imaging, Printing & Solutions business, before assuming his current role as President and CEO. His insider trading activities provide valuable insights into the company's financial health and future prospects.
HP Inc is a leading global provider of personal computing and other access devices, imaging and printing products, and related technologies, solutions, and services. The company sells to individual consumers, small- and medium-sized businesses, and large enterprises, including customers in the government, health, and education sectors.
The insider transaction history for HP Inc shows a clear trend of more insider selling than buying over the past year. There have been 20 insider sells and 0 insider buys in total. This could indicate that insiders believe the company's stock is currently overvalued, prompting them to sell their shares.
On the day of the insider's recent sell, shares of HP Inc were trading for $25.75 apiece, giving the stock a market cap of $25.73 billion. The price-earnings ratio is 11.23, lower than the industry median of 21.5 and higher than the company’s historical median price-earnings ratio. This suggests that the stock is relatively undervalued compared to its peers but overvalued based on its own historical standards.
According to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates, HP Inc is modestly undervalued. With a price of $25.75 and a GuruFocus Value of $31.85, the stock has a price-to-GF-Value ratio of 0.81.
In conclusion, the insider's recent sell, along with the trend of more insider selling than buying over the past year, could be a signal that insiders believe the stock is overvalued. However, based on the company's price-earnings ratio and GuruFocus Value, the stock appears to be modestly undervalued. Investors should consider these factors and conduct further research before making investment decisions.
