Moody’s (MCO) Shatters Hewlett-Packard (NYSE:HPQ) Credit Rating on Strong Rivalry

Hewlett-Packard Company (NYSE:HPQ) had its credit ratings shatter by Moody’s Corporation (NYSE:MCO) Investors Service, which mentioned fears regarding the world’s biggest computer maker’s ability to compete with rivalry and execution difficulties.

Moody’s reported in a statement on Wednesday that the credit-rating company lower the HP’s long-term credit ratings to Baa1, 3 levels over junk, from A3. Its forecast is pessimistic.

The Palo Alto, California based Hewlett-Packard is taking an $8.8 billion write-down linked with alleged falsified accounting at Autonomy Corp, the software manufacturer it purchased previous year.

Moody’s reported that sales at Hewlett-Packard will drop 5% coming year and operating margins will narrow, evaluated against the PC maker’s historical average.

Shifting reader’s focus to broader market, let us consider market performance of other stocks that significantly affect same sector. Super Micro Computer, Inc. (NASDAQ:SMCI) rose +0.90% to settle at $8.95, RadiSys Corporation (NASDAQ:RSYS) moved down -1.37% to end at $2.16 while Cray Inc. (NASDAQ:CRAY) jumped +1.62% to finish at $14.43 on Wednesday.

Hewlett-Packard Company (NYSE:HPQ) last session’s volume of 33.20 million shares was surprisingly higher than its average volume of 29.82 million shares. The stock after opening at $12.38 hit high price of $12.77 and then closed at $12.73 by scoring +2.99%.

The liquidity measure in recent quarter results of the company was recorded 1.09 as current ratio and on the other side the debt to equity ratio was 1.27 and long-term debt to equity ratio remained at 0.97. The Company had total cash of $11.30 million at hand and a book value per share as $11.42 in the most recent quarter.

The stock’s price volatility was 4.62% for a week and 3.59% for a month as well as price volatility’s Average True Range for 14 days was 0.54 and its beta remained at 1.08.

HPQ generated revenue of $120.36 billion in the previous twelve months. The Company showed a negative -10.51% in the net profit margin as well as in its operating margin which remained at -9.19%. Company’s annual sales growth for the past five years was 2.91%.

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