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NEW YORK - Impactive Capital LP, a significant shareholder of WEX Inc. (NYSE:WEX), announced its intention to vote against three incumbent directors at the upcoming annual meeting, signaling a push for change within the company’s leadership. Impactive, which holds approximately 7.0% of WEX’s shares, is advocating for stronger shareholder representation on the board to address what it perceives as a period of underperformance. According to InvestingPro analysis, WEX currently appears undervalued, with management actively buying back shares despite the company’s market capitalization of $4.16 billion.
Impactive has been engaging with the WEX board and management for four years and has recently intensified its efforts over the past twelve months. The investment firm’s dissatisfaction with WEX’s trajectory has led to a call for voting against Jack VanWoerkom, Melissa Smith, and James Neary on the grounds of long-term underperformance and a lack of action from the board to incorporate shareholder perspectives.
WEX, a payment processing company, has seen its stock price lag behind its closest peer, Corpay, Inc. (CPAY), and the broader S&P 400 index. According to Impactive, the divergence in performance between WEX and CPAY over the past 12 years, and particularly the last year, suggests issues with capital allocation, operational performance, and strategic oversight.
Impactive’s move comes after a request for a board seat to add a shareholder voice was denied, a decision that has prompted the firm to take a stand at the annual meeting. The firm believes that the refusal to adapt the board’s composition and the extension of VanWoerkom’s tenure, despite a policy change on age limits, are indicative of the board’s resistance to change.
Despite the ongoing contention, Impactive remains open to working with the board and management constructively to realize WEX’s full potential. The firm emphasizes the importance of shareholder representation to restore investor confidence and unlock value for all stakeholders. Notably, InvestingPro reports that four analysts have recently revised their earnings estimates upward for the upcoming period, suggesting potential positive momentum. However, Impactive has also made it clear that it reserves the right to take further action, including potentially nominating directors at the next annual meeting, if necessary. For deeper insights into WEX’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
This announcement is based on a press release statement from Impactive Capital LP.
In other recent news, Wex Inc. reported its first-quarter 2025 earnings, showcasing an earnings per share (EPS) of $3.51, which exceeded the forecasted $3.38. The company’s revenue for the quarter reached $636.6 million, slightly above the expected $632.35 million, although it marked a 2.5% decrease from the previous year. Despite surpassing earnings expectations, Wex’s stock experienced a decline, which may reflect broader economic concerns. The company has reduced its share count by 13.1% since the year-end and is investing $25 million in sales and marketing initiatives. Analysts from KBW raised questions about the mobility segment, noting an 18% increase in small business applications. Wex’s full-year 2025 revenue guidance stands at $2.57 billion to $2.63 billion, with adjusted EPS expected between $14.72 and $15.32. The company continues to monitor macroeconomic conditions closely, ready to adjust investments if necessary.
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