B of A Downgrades HP Outlook from Buy to Neutral

A recent report reveals that B of A Securities has downgraded HP's outlook from 'Buy' to 'Neutral'. Despite the downgrade, institutional interest in HP saw a modest increase, indicating a potential mixed sentiment among investors.

Date: 29-09-2024

AI Rating: 5

The report highlights a significant downgrade in HP's stock outlook from Buy to Neutral by B of A Securities. This shift is likely to result in negative sentiment regarding HP's future performance, potentially leading to a decrease in stock prices.

However, there are indicators of interest from institutional investors. The report states that the number of funds holding HP shares rose by 119, approximately 6.25%, over the last quarter. This suggests a growing confidence among some institutional investors, despite the downgrade.

Total shares owned by institutions increased by 3.53%, bringing the total to 847,428K shares. The average portfolio weight dedicated to HPQ also rose by 21.52%. This positive trend in ownership could support HP's stock price amidst a generally negative outlook.

Moving to individual shareholders, Dodge & Cox reduced its stake by 0.72%, while increasing their overall portfolio allocation by 19.04% in the last quarter, indicating a mixed strategy. Similar behaviors were noted with Vanguard and Primecap Management, where modest decreases in share ownership were accompanied by increases in portfolio allocation percentages.

Overall, while the downgrade presents a negative outlook, the support from institutional investors and the increase in their holdings might mitigate some immediate adverse effects on stock prices.

Stocks: HPQ