Will the World’s Thinnest and Lightest Convertible PC Send HP Inc. (NYSE:HPQ) Shares Soaring Today?


Today, HP Inc (NYSE:HPQ) announced a new personal computer line-up that aims to help customers get more done while also having fun. The question isn’t whether or not consumers are excited about some of HP Inc.’s (NYSE:HPQ) new products, but whether Wall Street will react accordingly or not.

The new products from HP Inc (NYSE:HPQ) include:
– An OLED display option on its award-winning 13.3″ diagonal HP Spectre x360.
– An HP Pavilion x2 featuring a larger tablet design to help ensure customers be more productive with a 12.1″ diagonal display.
– A 15.6″ diagonal version of the award-winning HP Spectre x360 with exceptional battery life.

Most exciting, at least for me though, is the company’s 15.6″ Covertible PC. It is not only the world’s thinnest, but also the world’s lightest. It features a high-resolution 4K display and premium audio from Bang & Olufsen.

“Screen quality — including resolution, brightness and contrast — are increasingly important to customers creating and viewing rich media content on their personal systems, and PCs are no exception,” said Mike Nash, vice president, customer experience and portfolio strategy, personal systems, HP Inc. “To deliver experiences that amaze, HP is bringing OLED and 4K displays as an option on the new HP Spectre x360 13.3″ and 15.6″ convertible PCs, respectively.”

It should be interesting to see how investors react as the market opens this morning.

The stock closed at $11.6 during the last trading session. It is down 65.64% since June 1, 2015 and is downtrending. It has underperformed the S&P500 by 63.51%.

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 95.43% above today’s ($11.6) 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 worsened, 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 selling transactions 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 $1.01 million. 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 $20.79 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 4.68 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.