HP slumps lower as Warren Buffett trims stake after muted Q3 earnings

HP Inc.  (HPQ) - Get Free Report shares slumped lower in pre-market trading following a series of sales by billionaire investor Warren Buffett's Berkshire Hathaway investment group late last week. 

Buffett, who began building his stake in the PC and peripherals maker in the spring of last year, sold around 4.8 million shares valued at around $130 million last week, according to a Securities and Exchange Commission filing published Friday.

That followed sales of around $160 million, or 5.5 million shares, over the two-day period that ended on September 13, all of which have reduced Buffett's stake to around 11.2%. 

SEC rules dictate that investors with a holding of more than 10% in any particular entity must disclose transactions on an ongoing basis, whereas holdings under 10% can be updated on a quarterly basis. 

Late last month, HP lowered its full-year profit forecast by as much as 15 cents per share, to a new rate of between $3.30 and $3.35 per share, following a muted third quarter earnings report that included a near 10% decline in revenues linked to ongoing weakness in China and cautious corporate IT spending plans.

"The external environment has not improved as quickly as anticipated and we are moderating our expectations as a result," CEO Enrique Lores told investors on a conference call on August 29. 

HP shares were marked 2.43% lower in pre-market trading to indicate an opening bell price of $26.12 each, a move that would extend the stock's six-month decline to around 7%.

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