Dodge & Cox Ups Stake in HP

Dodge & Cox has a short while ago disclosed that it upped its stake in HP Inc. (NYSE:HPQ) by twenty.72%. Proudly owning ten.11% of shares outstanding, the business is HP’s most significant institutional shareholder.

With above 80 years of record as an expenditure business, Dodge & Cox has developed a team of gurus that have typically spent their entire careers with the team. The San Francisco-primarily based mutual fund emphasizes unbiased research as the coronary heart of just about every expenditure, focusing on out-of-favor areas and evaluating corporations primarily based on a lengthy-time period fundamental outlook and a healthful skepticism of consensus conclusions. The equity portfolio is valued at $121.53 billion.

According to GuruFocus Authentic-Time Picks, a Top quality feature, the business included 28,a hundred and sixty,030 million shares to its situation in the computer system and printing large on Jan. 31, bringing the total amount of shares owned to 146,883,601 and impacting the equity portfolio by .49%. The inventory traded close to $21.32 for every share close to that time.


According to GuruFocus estimates, Dodge & Cox has noticed a return of 17.eighty one% on the expenditure above the earlier ten years.

As of Feb. 11, HP has a industry cap of $32.3 billion, a cost-earnings ratio of ten.seventy eight and a three-yr regular share buyback ratio of 5.two%. Its shares traded close to $22.23 on Tuesday. GuruFocus has assigned HP a monetary strength ranking of 6 out of ten and a profitability ranking of seven out of ten.

According to the Peter Lynch chart, the cost is slightly earlier mentioned the stock’s truthful value.


HP, or Hewlett-Packard, is a multinational details know-how business primarily based in Palo Alto, California. It largely develops personal computers and printers (including 3-D printers). PCs account for roughly two-thirds of revenue, though printing accounts for the other third. Even so, printing is by far the additional worthwhile of the company’s two divisions, as it continue to delivers in additional net revenue ($777 million in the fourth quarter of 2019 in contrast to the Computer system division’s $556 million).

Overall, HP has noticed growth in both equally revenue and net revenue in current years and is demonstrating indications of restoration soon after falling guiding in the 2012 shift to a number of new modes of computing. When cloud computing strike the marketplaces, smartphones grew to become additional widespread than flip phones and quite a few buyers started selecting tablets above PCs, aged-age computer system stalwarts like HP endured a blow. About the earlier three years, while, HP has developed its revenue at a rate of eight.5% for every yr.


Other prime expert shareholders of HP contain BlackRock Inc. with 6.87% of shares outstanding, Carl Icahn (Trades, Portfolio) with 4.24% and PRIMECAP Administration (Trades, Portfolio) with 3.15%.

Portfolio composition

As of the finish of the fourth quarter of 2019, Dodge & Cox’s equity portfolio consisted of 181 stocks. In terms of sector weighting, the business is most invested in financial services, wellness care and know-how.


In addition to HP, Dodge & Cox owns inventory in a number of other corporations that largely sell computer system hardware, including Apple Inc. (NASDAQ:AAPL), Dell Systems Inc. (NYSE:DELL), Motorola Remedies Inc. (NYSE:MSI) and Juniper Networks Inc. (NYSE:JNPR).

View the firm’s portfolio in this article.

Disclosure: Author owns no shares in any of the stocks outlined.

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