The Hewlett-Packard Company, commonly known as HP, has been a household name in the technology industry for over eight decades. Founded in 1939 by Bill Hewlett and Dave Packard, the company has undergone significant transformations, mergers, and acquisitions, leading to a complex ownership structure. In this article, we will delve into the history of HP, its evolution, and the current ownership landscape.
A Brief History of HP
HP’s humble beginnings date back to 1939 when Bill Hewlett and Dave Packard founded the company in a small garage in Palo Alto, California. Initially, the company focused on producing electronic test and measurement equipment, but it soon expanded its product line to include calculators, computers, and printers. Over the years, HP has been at the forefront of innovation, introducing groundbreaking products such as the first commercially available computer, the HP-85, and the first inkjet printer, the HP DeskJet.
Major Milestones in HP’s History
Some significant events have shaped HP’s history and ownership structure:
- 1957: HP goes public with an initial public offering (IPO)
- 1966: HP introduces its first computer, the HP-2116A
- 1972: HP introduces its first scientific calculator, the HP-35
- 1980: HP introduces its first personal computer, the HP-85
- 1999: HP spins off its measurement and test equipment business to form Agilent Technologies
- 2002: HP merges with Compaq Computer Corporation
- 2015: HP splits into two separate companies: HP Inc. and Hewlett Packard Enterprise (HPE)
Current Ownership Structure
Today, HP is divided into two separate companies: HP Inc. and Hewlett Packard Enterprise (HPE). Both companies are publicly traded and have distinct ownership structures.
HP Inc.
HP Inc. is the successor to the original HP company and focuses on the development and sale of personal computers, printers, and other consumer electronics. The largest shareholders of HP Inc. include:
- The Vanguard Group, Inc.: 11.4%
- BlackRock, Inc.: 6.6%
- State Street Corporation: 4.1%
- FMR, LLC (Fidelity): 3.5%
- Capital Research Global Investors: 3.3%
Hewlett Packard Enterprise (HPE)
Hewlett Packard Enterprise (HPE) is a separate entity that focuses on providing enterprise software, services, and solutions. The largest shareholders of HPE include:
- The Vanguard Group, Inc.: 12.1%
- BlackRock, Inc.: 7.1%
- State Street Corporation: 4.3%
- FMR, LLC (Fidelity): 3.6%
- Capital Research Global Investors: 3.4%
Institutional Investors
Institutional investors play a significant role in the ownership structure of both HP Inc. and HPE. These investors include pension funds, mutual funds, and insurance companies. Some of the largest institutional investors in HP Inc. and HPE include:
- The Vanguard Group, Inc.
- BlackRock, Inc.
- State Street Corporation
- FMR, LLC (Fidelity)
- Capital Research Global Investors
Impact of Institutional Investors
Institutional investors have a significant impact on the ownership structure and governance of HP Inc. and HPE. These investors can influence the direction of the company through their voting power and can also impact the stock price through their buying and selling activities.
Insider Ownership
Insider ownership refers to the ownership of company shares by its executives, directors, and employees. Insider ownership can be an important indicator of a company’s performance and governance.
HP Inc. Insider Ownership
Some of the largest insider owners of HP Inc. include:
- Enrique Lores, President and CEO: 0.02%
- Marie Myers, CFO: 0.01%
- Alex Cho, President, Personal Systems: 0.01%
HPE Insider Ownership
Some of the largest insider owners of HPE include:
- Antonio Neri, President and CEO: 0.03%
- Tarek Robbiati, CFO: 0.02%
- Phil Davis, President, Hybrid IT: 0.02%
Conclusion
In conclusion, the ownership structure of HP is complex and has undergone significant changes over the years. Today, HP is divided into two separate companies: HP Inc. and Hewlett Packard Enterprise (HPE). Both companies are publicly traded and have distinct ownership structures, with institutional investors playing a significant role. Understanding the ownership structure of HP can provide valuable insights into the company’s governance, performance, and future direction.
| Company | Largest Shareholders | Insider Ownership |
|---|---|---|
| HP Inc. | The Vanguard Group, Inc. (11.4%), BlackRock, Inc. (6.6%), State Street Corporation (4.1%) | Enrique Lores (0.02%), Marie Myers (0.01%), Alex Cho (0.01%) |
| Hewlett Packard Enterprise (HPE) | The Vanguard Group, Inc. (12.1%), BlackRock, Inc. (7.1%), State Street Corporation (4.3%) | Antonio Neri (0.03%), Tarek Robbiati (0.02%), Phil Davis (0.02%) |
As the technology industry continues to evolve, it will be interesting to see how the ownership structure of HP Inc. and HPE changes and how it impacts the companies’ performance and governance.
What is the current ownership structure of HP?
The current ownership structure of HP is a bit complex, with multiple shareholders holding significant stakes in the company. As of the latest available data, the largest shareholders of HP include institutional investors such as The Vanguard Group, BlackRock, and State Street Corporation. These investors hold a significant portion of the company’s outstanding shares, with The Vanguard Group being the largest shareholder.
In addition to institutional investors, HP also has a number of individual investors who hold significant stakes in the company. These include the company’s executives and directors, as well as other large investors who have acquired shares through various means. The ownership structure of HP is subject to change over time, as investors buy and sell shares of the company.
Who are the major shareholders of HP?
The major shareholders of HP include a mix of institutional investors and individual investors. As mentioned earlier, The Vanguard Group is the largest shareholder of HP, followed closely by BlackRock and State Street Corporation. Other significant institutional investors include FMR, LLC (Fidelity) and Capital Research Global Investors.
In terms of individual investors, some of the largest shareholders of HP include the company’s executives and directors. For example, Enrique Lores, the President and CEO of HP, is a significant shareholder of the company. Other notable individual investors include the company’s Chairman, Chip Bergh, and other members of the company’s board of directors.
What is the role of institutional investors in HP’s ownership?
Institutional investors play a significant role in HP’s ownership structure, holding a large portion of the company’s outstanding shares. These investors are typically large financial institutions, such as pension funds, mutual funds, and insurance companies, that invest in a wide range of assets, including stocks. Institutional investors can exert significant influence over a company’s operations and strategy, particularly if they hold a large stake in the company.
In the case of HP, institutional investors such as The Vanguard Group and BlackRock hold significant stakes in the company. These investors can use their influence to shape the company’s strategy and direction, although they typically do not get involved in the day-to-day operations of the company. Institutional investors can also provide stability and long-term focus to a company, as they are often less concerned with short-term fluctuations in the stock price.
How has the ownership of HP changed over time?
The ownership of HP has undergone significant changes over the years, reflecting the company’s evolution and growth. In the early days of the company, HP was owned and controlled by its founders, Bill Hewlett and Dave Packard. As the company grew and went public, the ownership structure expanded to include a wider range of investors.
In recent years, the ownership of HP has continued to evolve, with significant changes in the company’s shareholder base. For example, in 2015, HP split into two separate companies, HP Inc. and Hewlett Packard Enterprise. This split led to a significant change in the ownership structure of the company, with some investors choosing to focus on one or the other of the two new companies. Today, the ownership of HP is more diverse than ever, with a wide range of investors holding stakes in the company.
What is the significance of HP’s ownership structure?
The ownership structure of HP is significant because it can influence the company’s strategy and direction. With a diverse range of investors holding stakes in the company, HP’s ownership structure can provide a degree of stability and long-term focus. This can be beneficial for the company, as it allows management to focus on executing the company’s strategy without undue pressure from short-term investors.
The ownership structure of HP can also have implications for the company’s governance and decision-making processes. For example, the company’s board of directors is responsible for overseeing the company’s strategy and direction, and the ownership structure can influence the composition and priorities of the board. Overall, the ownership structure of HP is an important aspect of the company’s overall governance and strategy.
How does HP’s ownership structure compare to its peers?
HP’s ownership structure is similar to that of its peers in the technology industry. Many large technology companies, such as Apple and Microsoft, have a diverse range of investors holding stakes in the company. However, there are some differences in the ownership structures of these companies, reflecting their unique histories and strategies.
For example, some technology companies, such as Google and Facebook, have a more concentrated ownership structure, with a small group of investors holding a significant portion of the company’s outstanding shares. In contrast, HP’s ownership structure is more dispersed, with a wider range of investors holding stakes in the company. Overall, the ownership structure of HP is consistent with the norms of the technology industry, although there are some differences in the details.
What are the implications of HP’s ownership structure for investors?
The ownership structure of HP has implications for investors who are considering buying or holding shares of the company. With a diverse range of investors holding stakes in the company, HP’s ownership structure can provide a degree of stability and long-term focus. This can be beneficial for investors who are looking for a stable and predictable investment.
However, the ownership structure of HP can also have implications for investors who are looking for a more active role in the company’s governance and decision-making processes. For example, investors who hold a significant stake in the company may have more influence over the company’s strategy and direction. Overall, the ownership structure of HP is an important consideration for investors who are evaluating the company as a potential investment opportunity.