Canada Pension Plan Investment Board | WSP’s second-largest shareholder sells shares again

For the second time in six months, one of WSP’s two large institutional shareholders has just sold a large block of shares in the Montreal engineering consulting firm.

The Canada Pension Plan Investment Board on Tuesday sold nearly 1.2 million WSP shares. The transaction valued at more than $ 200 million is revealed in a document filed with the stock exchange authorities.

Last July, the Canada Pension Plan Investment Board sold $ 400 million in WSP stock. The Canada Pension Plan Investment Board was then WSP’s largest shareholder.

Since that time, the Caisse de dépôt et placement du Québec has been WSP’s largest shareholder, with 21 million shares, the equivalent of an 18% stake. The independent investment manager for the Canada Pension Plan remains WSP’s second largest shareholder with 17.7 million shares, or about 15%.

The head of investor relations at the Canada Pension Plan Investment Board, Frank Switzer, said last summer that adjustments to the portfolio are made on an ad hoc basis in order to diversify investments in accordance with the strategy of ‘investment.

This time, Frank Switzer did not wish to react. “I will refuse to comment,” he simply told Press.

Seller insiders

WSP’s stock market rise has been impressive in recent years. The title of the ex-Genivar, however, shows a decline of 7% from its peak of $ 187 reached in November.

Just before Christmas, WSP vice chairman and former company CEO Pierre Shoiry sold approximately $ 24 million in WSP stock.

Three senior executives for their part exercised large blocks of options on December 22. Current CEO Alex L’Heureux, CFO Alain Michaud and CFO Philippe Fortier respectively obtained 6.5 million, 1.5 million and 1.5 million after the sale of shares subsequent to the exercise of options.

Future strategic plan

The title of WSP is among the short list of the best investment ideas for 2022 presented last month by RBC Capital Markets. Analyst Sabahat Khan appreciates the history of the company and its ability to be able to make new acquisitions.

WSP’s presentation of the new three-year strategic plan is expected in the coming weeks, says Sabahat Khan, and he believes this is another element that could serve as a catalyst for action.

Eleven of the 14 analysts who officially follow WSP’s activities recommend the purchase of the stock. The 12-month average target price is $ 193.

WSP stock closed at $ 174.90 on the Toronto Stock Exchange on Thursday, putting the company in excess of $ 20 billion.

WSP’s size has grown in particular following multiple acquisitions made over the years.

The mandate of the Canada Pension Plan Investment Board is to help create security for generations of Canadians. As of early October, the Canada pension plan’s investment fund exceeded the $ 541 billion mark.

Leave a Comment