Dan Sweet

With HPQ at 7-year lows – this board member is backing up the truck

Big insider buying by a board member at Hewlett Packard (HPQ) came across SEC.gov via a Form 4 filing on 5/30/12.

Ralph V Whitworth is an activist investor who runs Relational Investors LLC and took his HP board seat back in November 2011.  He / RI LLC owned 17 million shares then and has just upped the position to 29 million shares.  This was 6-7% of the portfolio and should now be getting close to 11-12% of RI LLC holdings.  Recent prices are right around the level where he started buying back in October.

The Bloomberg article linked above lists a series of pretty big moves coming out of prior board positions he has held at other companies.  With a 14-person board I’m skeptical of anyone’s ability to drive change but this guy has a pretty impressive track record, so I’ll be watching.

What do you think?  Is it time to buy HPQ?


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One Comment

  1. Dan Sweet says:

    Ouch. Our buddy Ralph is now down $87MM on just his recent purchases. HPQ at $17.76 a share.

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