This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Hewlett Packard Insiders Underwater on Sinking Stock

He's getting crushed.

Another director, Ralph Whitworth, is in even worse shape, though he doesn't feel as much personal pain.

Whitworth runs a "value" fund out of San Diego known as Relational Investors LLC. In other words, he manages money. And he's bullish HPQ. So bullish that he loaded up this past spring adding millions of shares to his fund's allocation.

Consider one of his buys. On May 31, Relational Investors picked up 3,092,158 additional shares of HPQ at an average price of $22.54. That's an investment of $69,697,241.

Using HPQ's Friday close of $12.44, that lot is now worth just $38,466,445, a decline of about 45%. Whitworth's firm is long just shy of 35 million shares of HPQ, according to the latest documents filed with the SEC.

If this was an "activist" move by Whitworth, it's not working. He's overweight HPQ, he doesn't own enough to get very hostile, he's getting killed on the position and if he wields any influence on the company's board, it's having no positive impact.

Don't follow the noise that surrounds insider buys and sells, particularly when you hear people yelp about "value" from the bullish side. On the bearish side, it's popular to blab uninformed that insiders sell because they don't believe in their company. Often, that sentiment could not be farther from the truth.

-- Written by Rocco Pendola in Santa Monica, Calif.
Rocco Pendola is TheStreet's Director of Social Media. Pendola's daily contributions to TheStreet frequently appear on CNBC and at various top online properties, such as Forbes.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FB $117.58 0.00%
HPQ $12.27 0.00%
AAPL $93.74 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs