Hewlett-Packard (NYSE: HPQ ) dropped 23% in intraday trading today after issuing disappointing guidance and revealing plans to "transform" the business.
Shares of HP fell to $22.76 in heavy early morning trading, making it the biggest loser on the New York Stock Exchange. The broader S&P 500 Index fell nearly 1 percent.
With a forward 12-month price-to-earnings ratio of 5.6, the company is trailing its peers, including Dell, Apple and IBM according to Starmine SmartEstimate.
Excluding losses on Thursday and Friday, HP's stock has lost nearly a fifth of its value since the world's largest PC maker reported second-quarter results on May 17.
On Thursday, the company said it may spin off its PC business and also cut its outlook and said it will buy British software company Autonomy Corp to boost its cloud business.
At least two brokerages downgraded the Palo Alto, California-based company's stock, and five analysts cut their price targets, mainly citing the uncertainty and expenses that will accompany the company's restructuring.
"HP is undergoing a sound strategy transformation by focusing on high-growth, high-margin opportunities in the enterprise/commercial markets," Gleacher and Co wrote in a note and cut its price target to $39 from $50.
Hewlett-Packard shares prices today august 19 2011, Hewlett-Packard shares predictions, Hewlett-Packard shares forecast, Hewlett-Packard stock prices predictions 2011, Hewlett-Packard stock prices outlook 2011. For the latest updates PRESS CTR + D or visit Stock Market news Today
No comments:
Post a Comment