Form 4: HP CEO Lores Exercises Stock Units, Sells for Tax

HP Inc. President and CEO Enrique Lores exercised performance-adjusted restricted stock units and sold a portion to cover tax obligations.

Summary

• Enrique Lores, President and CEO of HP Inc., acquired 159,983 shares of common stock on November 18, 2025, through the vesting of Performance Adjusted Restricted Stock Units (PARSUs).
• The vesting of these PARSUs was based on the achievement of certain earnings per share and total shareholder return conditions.
• Included in the vested PARSUs were 16,215 dividend equivalent units that accrued when dividends were paid on HP common stock.
• To satisfy tax withholding obligations upon vesting, Mr. Lores disposed of 76,139 shares of common stock at a price of $22.71 per share.
• Following these transactions, Mr. Lores directly beneficially owns 83,847 shares of common stock.
• Additionally, Mr. Lores indirectly beneficially owns 888,908 shares of common stock through a limited partnership he controls.
• The original grant of PARSUs was for 179,261 units on December 8, 2022.

Sentiment

Score: 7

Explanation: The filing reports a routine executive compensation event where performance targets were met, leading to stock vesting. While shares were sold for tax, this is standard practice and indicates successful achievement of company goals, which is a positive signal.

Positives

• The vesting of 159,983 Performance Adjusted Restricted Stock Units indicates that HP Inc. met specific earnings per share and total shareholder return performance conditions, reflecting positively on company performance during the vesting period.

Negatives

• A significant portion of the vested shares (76,139 shares) was sold to cover tax withholding, resulting in a reduction of Mr. Lores' direct beneficial ownership.

Related Party Transactions

• Enrique Lores indirectly beneficially owns 888,908 shares of common stock through a limited partnership, which is ultimately controlled by him.

Stakeholder Impact

• Shareholders: The vesting of PARSUs indicates that the company met certain performance targets, which could be viewed positively. The transaction itself is a routine executive compensation event and is unlikely to have a significant direct impact on other shareholders.
• Employees: No direct impact mentioned.

Key Dates

Recommendation

This Form 4 filing details a routine executive compensation event involving the vesting of restricted stock units and a subsequent sale of shares to cover tax obligations. Such transactions are pre-scheduled and expected, reflecting the achievement of previously set performance targets rather than a change in management's outlook or the company's fundamental prospects. Therefore, it does not provide new information that would warrant a change in investment recommendation.

Keywords

HPQ, HP Inc., Enrique Lores, Form 4, Insider Transaction, Executive Compensation, Restricted Stock Units, Stock Vesting, Tax Withholding