HP shares gain for a fourth straight session on Wednesday, up to 5 000 jobs may be cut due to restructuring program

According to a recent report by CNBC, between 4 500 and 5 000 employees are expected to leave HP Inc by the end of fiscal year 2019 due to an ongoing restructuring program.

HP shares closed higher for a fourth consecutive trading session in New York on Wednesday. The stock edged up 0.38% ($0.09) to $23.51, after touching an intraday high at $23.60, or a price level not seen since March 16th ($23.82).

Shares of HP Inc have risen 11.90% so far in 2018 compared with a 3.69% gain for the underlying index, S&P 500 (SPX).

In 2017, HP’s stock surged 41.58%, thus, it again outperformed the S&P 500, which registered a 19.42% return.

In October 2016, a restructuring plan was approved by HPs board of directors, which envisaged about 4 000 job cuts. Last month HP said that figure might increase by 1%-2%.

The program is expected to be implemented through fiscal year 2019.

The tech company said it now expected about $700 million in pretax charges as a result of layoffs, which compares with $500 million in such costs, as forecast previously.

About 50% of the projected pretax charges will be related to severance, HP said. The remaining 50% will include costs related to infrastructure, non-labor actions as well as other charges.

According to CNBC, as of October 31st, as many as 49 000 people were employed with HP Inc.

According to CNN Money, the 20 analysts, offering 12-month forecasts regarding HP Inc’s stock price, have a median target of $26.50 with a high estimate of $28.00 and a low estimate of $21.00. The median estimate is a 12.72% surge compared to the closing price of $23.51 on June 6th.

The same media also reported that 11 out of 23 surveyed investment analysts had rated HP Inc’s stock as “Hold”, while 10 – as “Buy”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the HP stock are presented as follows:

R1 – $23.55
R2 – $23.59
R3 (Range Resistance – Sell) – $23.63
R4 (Long Breakout) – $23.74
R5 (Breakout Target 1) – $23.88
R6 (Breakout Target 2) – $23.94

S1 – $23.47
S2 – $23.43
S3 (Range Support – Buy) – $23.39
S4 (Short Breakout) – $23.28
S5 (Breakout Target 1) – $23.14
S6 (Breakout Target 2) – $23.08

By using the traditional method of calculation, the weekly levels of importance for HP Inc (HPQ) are presented as follows:

Central Pivot Point – $22.14
R1 – $23.25
R2 – $23.81
R3 – $24.92
R4 – $26.02

S1 – $21.58
S2 – $20.47
S3 – $19.91
S4 – $19.34