Enrique Lores, CEO of HP Inc. About the stock buyback program

HP Inc. CEO Enrique Loris told CNBC’s Jim Kramer Monday that the company is maintaining its stock buyback program, arguing that it’s still a good use of corporate money even as shares are up 18% over the past 12 months.

“We continue to believe that our shares are undervalued, and therefore, buying HP shares is a good investment for investors,” Loris said. “mad money” Interview after the company Reported better than expected results for its first fiscal quarter of 2022, which ended Jan. 31.

Earnings per share of $1.10 beat Wall Street expectations by 8 cents, according to Refinitiv, while quarterly revenue of $17.02 billion beat analysts’ expectations of $16.5 billion. Additionally, the company returned $1.8 billion to shareholders this quarter, with $1.5 billion via share buybacks, Loris said.

Loris’ comments came in response to Kramer’s inquiry about whether a stock buyback “still makes sense all the way here.” On January 12, the stock reached an all-time high of $39.65 a share, but it has fallen slightly since then during a period of overall market volatility.

HP Inc. shares closed. Monday’s session at $34.36 a share, bringing its year-to-date decline to about 9%.

“We have committed to buying at least $4 billion in stock this year,” Loris said. “We will continue to implement our plan because we believe once again that it is a good investment,” he added.

HP Inc. shares are traded. At 8.1 times forward earnings, according to FactSet, which is below its five-year average of 9.4. The stock also supports a dividend yield of 2.9%, based on Monday’s closing price.

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