New York New York USA - Billionaire Bill Ackman's Pershing Square has cut its exposure to Canadian Pacific Railway Limited (CP) according to a
recent filing with the US Securities and Exchange Commission.
In a Form 4 filing, Pershing Square reported the sale of 4.10 million shares of CP at an average price of US$148.25.
Following the sale, Pershing Square owns 9.84 million shares of CP, which represent 6.40 percent of the company's outstanding stock as revealed in a 13D
filing.
CP's stock has lost over 20 percent in the last 52 weeks, as a drop in commodity prices reduced shipping volumes.
However, the company has recently posted strong results for the first quarter, with adjusted EPS amounting to $2.50 per share, higher than the estimate of
$2.40 per share, while its revenue of $1.59 billion was down by 4 percent on the year and below the estimates of $1.61 billion.
The company has recently abandoned plans to pursue the acquisition of Norfolk Southern Corporation (NS) and announced plans to return more capital to
shareholders.
More specifically, CP has raised the dividend by 43 percetn to $0.50 per quarter and said it is going to buy back up to 6.91 million shares of its
stock.
Aside from Ackman, who in 2012 managed to replace CP's board, top management, and succeeded in changing the company's course, other investors bullish on the
stock include Andreas Halvorsen's Viking Global, Daniel S. Och's OZ Management, and John Griffin's Blue Ridge Capital.
Anonymous Author.