Bill Ackman’s Pershing Square Sells 3.2 Mln Shares of Canadian Pacific Railway Limited (USA) (CP)

As a newly amended filing with the SEC showed, Bill Ackman has reduced his exposure to Canadian Pacific Railway Limited (USA) (NYSE:CP), currently holding around 13.94 million shares, versus 17.16 million reported earlier. Pershing Square reported selling some 3.22 million shares, for $149.75 apiece, the total value of the deal raising to $509.43 million. Following the disposal, Pershing owns 8.0% of Canadian Pacific’s outstanding common stock.

Bill Ackman

Moreover, Pershing Square stated that the reduction was made for general portfolio management reasons and the fund still remains the largest shareholder of Canadian Pacific Railway Limited (USA) (NYSE:CP). The move made by Ackman comes a couple of days after Canadian Pacific disclosed its earnings for the first quarter of the year. The company posted solid results with a net income of $245 million, or $1.44 per share, higher from $217 million, or $1.24 per share reported a year earlier, and slightly above the expectations. Following the announcement of the results, the stock of Canadian Pacific gained around 4% in the following days.

The stock of Canadian Pacific Railway Limited (USA) (NYSE:CP) trades at a P/E of around 33.00, which is one of the highest in the Railroad industry, and is well above the industry average of approximately 19. Moreover, the company trades at a Price/Earnings-to-Growth ratio of below 1.00, while the average recommendation stands at ‘Overweight.’ For the full year, the company is expected to further increase its profits, with the consensus estimate for EPS amounting to over $8.00.

Last year, Mr. Ackman has already reduced his exposure to Canadian Pacific by around 30%, holding previously around 24.20 million shares. Andreas Halvorsen‘s Viking Global and Daniel S. Och‘s OZ Management are two other funds that reported holding shares of Canadian Pacific Railway Limited (USA) (NYSE:CP). Viking Global added the company to its equity portfolio in the last quarter of 2013, while Oz Management raised its holding by almost 40% to 3.56 million shares.

Recently, Pershing Square entered into an agreement with Valeant Pharmaceuticals International Inc (NYSE:VRX), under the terms of which, the parties intend to acquire the pharmaceutical company Allergan, Inc. (NYSE:AGN).

Disclosure: none

Recommended Reading:

Bill Ackman’s Pershing Square Further Cuts Position In BEAM Inc (BEAM)

Bill Ackman Exercises Warrants and Buys 4 Mln Platform Specialty Products Corporation (PAH) Shares

Bill Ackman’s Equity Portfolio Moves During Q4

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

The 10 Biggest Outlet Malls in USA

The 5 Most Popular Rap Songs of All Time

The 10 Countries that Eat the Most Meat

The10 Most Expensive Countries to Fly To

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!