Buffett's Berkshire Hathaway disclosed on Wednesday that it had sold about 5.5 million shares of Hewlett-Packard, partially settling its unsuccessful investment in the personal computer and printer maker. This is the first time Berkshire has sold HP stock on the public market since it disclosed in April 2022 that it had accumulated more than 12% of HP shares.
Berkshire Hathaway sold the HP shares between Monday and Wednesday at an average price of about $29 per share, cashing out a total of about $158 million, according to documents filed with the U.S. Securities and Exchange Commission late Wednesday.
After the sale, Berkshire still holds 115.5 million HP shares, worth about $3.27 billion, and its shareholding ratio dropped from 12.2% to about 11.7%.
Because Berkshire owns more than 10% of HP stock, it is required to disclose information on traded shares within two business days.
Last April, Berkshire unexpectedly disclosed its $4.2 billion stake in HP, causing the company's stock price to rise 14.8% the next day to $40.06. But the stock has fallen about 19% since then, closing Wednesday at $28.33.
In late August, HP cut its full-year profit forecast as it battles a year-long slump in demand for PCs.
Then on Monday, HP disclosed significant deficiencies in its financial reporting controls involving one of its customers and the application for payment from some sales incentive programs.