A major pension fund manager has just sold $270 million worth of shares in the Montreal engineering consulting firm WSP Global.
RPC Investments sold 2.48 million shares of WSP last week. The transaction took place on November 15 at a unit price of $182.26, reveals a document filed with regulatory authorities.
Despite this operation, the institutional investor remains the largest shareholder of WSP after the Caisse de dépôt et placement du Québec.
CPP Investments – also known as the Canada Pension Plan Investment Board – has been a shareholder of WSP since 2011. According to the most recent data available, WSP is by far the largest Canadian stock investment held in CPP Investments’ portfolio.
“From time to time, we make adjustments to our investment portfolio to diversify our holdings in line with our broader investment strategy,” comments Frank Switzer, spokesperson for the Canada Pension Plan Investment Board .
The CPP Office has been reducing its stake in WSP over the past two years, but the investment in WSP remains substantial, as there are still 14.9 million shares of the company in the portfolio, the equivalent of a stake of approximately 12%.
A block of WSP shares worth approximately $200 million was sold in January last year while a block of shares valued at $400 million was sold in July 2021.
Prior to these transactions, CPP Investments was the largest shareholder of WSP.
Good performance
WSP is one of the Quebec stocks that has generated some of the best stock market performances in recent years. Despite falling from its peak of $196 reached last month, shares of the company formerly known as Genivar remain up 20% this year.
A growth strategy through acquisitions has helped WSP expand rapidly over the years.
WSP’s stock remained stable Wednesday at $186 on the Toronto Stock Exchange, giving the company a market value of more than $23 billion.
Twelve of the 14 analysts who officially follow WSP’s activities recommend buying the stock, according to figures compiled by financial data firm Refinitiv. The experts’ average target price over a 12-month horizon is $209.
As of early October, the net assets of the Canada Pension Plan Investment Board stood at $576 billion.