Is HP Inc (HPQ) About to Reenter the Smartphone Space With HP Falcon Windows 10 Device?

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Rumors are spreading that HP Inc (NYSE:HPQ) may soon be reentering the smartphone space in partnership with Microsoft and their Windows 10 operating system. If rumors are true, the company is preparing a device that they will call the HP Falcon, and will unveil this device in February at Mobile World Congress 2016 in Barcelona, Spain. According to a source out of Germany, the device is already being tested internally, and will have the following specs:

– Qualcomm Snapdragon 820
– 3GB of RAM
– 5.8-inch 2560 x 1440 pixel resolution display
– 20mp front camera — 12mp rear camera

Whether or not this smartphone will actually make it to market is yet to be seen, but since the split of HP, the companies may now feel it’s ok to expands their scope of products and markets some. The stock decreased 0.81% or $0.09 on December 29, hitting $11.64. Approximately 100 shares traded hands. HPQ shares have declined 65.16% since May 26, 2015 and are currently downtrending. It has underperformed the S&P500 by 62.89%.

From a total of 25 analysts covering Hewlett-Packard (NYSE:HPQ) stock, 10 rate it a “Buy”, 0 a “Sell”, and 15 a “Hold”. This means that 40% of the ratings are positive. The highest target price is $45 while the lowest target price is $6. The mean of all analyst targets is $22.67 which is 94.76% above today’s ($11.64) stock price. Hewlett-Packard was the topic of 55 analyst reports since August 17, 2015 according to the firm StockzIntelligence Inc. BMO Capital Markets initiated shares on December 11 with a “Market Perform” rating. Brean Capital initiated shares with a”Buy” rating and a $18 target share price in their report from a November 6. FBN Securities initiated HPQ stock in a recent report from November 25 with a “Sector Perform” rating. Barclays Capital upgraded the rating on November 4. Barclays Capital has a “Equal-Weight” rating and a $14 price target on shares. Finally, Credit Suisse maintained the stock with a “Outperform” rating in a report they issued on a November 25.

The institutional sentiment decreased to 0.73 in Q2 2015. It’s down 0.13, from 0.86 in 2015Q2. The ratio fall, as 166 funds sold all their HP Inc shares they owned while 296 reduced their positions. 68 funds bought stakes while 269 increased their total positions. Institutions now own 1.37 billion shares which is 0.25% more than the previous share count of 1.37 billion in 2015Q2.

Okumus Fund Management Ltd. holds 15.04% of its total portfolio in HP Inc, equating to 4.49 million shares. Oldfield Partners Llp owns 7.34 million shares representing 13.5% of their total US portfolio. Moreover, Goodhaven Capital Management Llc has 6.88% of their total portfolio invested in the company, equating to 693,289 shares. The California-based Dorsal Capital Management Llc has a total of 5.3% of their portfolio invested in the stock. Sls Management Llc, a New York-based fund reported 264,490 shares owned.

Since March 5, 2015, the stock had 0 insider purchases, and 11 insider sales for a total of $16.44 million in net activity. Lesjak Catherine A sold 6,282 shares worth $165,531. Weisler Dion J sold 40,000 shares worth $1.01M. Fink Martin sold 23,069 shares worth $567,696. Ricci Jeff T sold 7,243 shares worth $186,073. The insider Youngjohns Robert sold 21,143 shares worth $543,164.

HP INC, formerly Hewlett-Packard Company , is a global well-known provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses (SMBs) and large enterprises, including clients in the government, health and education sectors. The company has a market cap of $21.03 billion. The Firm offers IT industry’s broadest portfolios of services and products that bring infrastructure, software, and services through innovation to enable its clients to create value and solve business problems. It has 4.69 P/E ratio. The Firm creates its solutions to provide foundation, in the areas of security, cloud, mobility and big data, by leveraging the breadth of its offerings and the strengths and capabilities of its individual business units.

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