Rishi Bajaj (pictured), Toby Symonds, and Steve Tesoriere’s Altai Capital has disposed off some 41,100 shares of Wausau Paper Corp. (NYSE:WPP) according to a recent 13D form filed with the SEC. The current stake amounts to over 2.5 million shares valued at $23.13 million and amasses about 5.0% of the company’s outstanding common stock. The latest move comes on the heels of an addition of 42,000 shares to the holding during the first quarter. Wausau Paper Corp. (NYSE:WPP)’s shares have slumped by more than 18% year-to-date and the stock is trading about 20% lower than its 52-week high. In comparison the Paper & Paper Products industry has appreciated by 2.35% during the same period. Currently the stock is trading at a particularly high and unattractive forward earnings multiple of 40.09. In its financial results for the first quarter, Wausau Paper Corp. (NYSE:WPP) beat estimates for both its top and bottom lines.
Hedgies have been losing interest in the company lately, perhaps owing to its worsening fundamentals. Among the funds that we track, a total of 10 firms had an aggregate investment of $164.66 million in the company compared to 13 funds with $190.39 million at the end of the previous quarter. Given that the stock lost more than 16% of its value in the first quarter, that accounts for the dip in overall value of hedge funds’ holdings, however over 20% of the funds who formerly held positions selling out of the stock is nonetheless a red flag.
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We also track insider activity since it gives valuable insight into how the company’s management sees its future prospects, especially insider purchases, which send a rather clear bullish signal. However in the case of Wausau Paper Corp. (NYSE:WPP) no such activity has taken place this year.