Waystar holding sees $300.7m stock sale by Canada Pension Plan

Published 26/02/2025, 22:38
Waystar holding sees $300.7m stock sale by Canada Pension Plan

In a notable transaction, Canada Pension Plan Investment Board (CPPIB), through its wholly-owned subsidiary CPP Investment Board Private Holdings (4) Inc., sold a significant portion of its stake in Waystar Holding Corp. (NASDAQ:WAY), a company that has delivered an impressive 101.79% return over the past year. The transaction, filed on February 26, 2025, involved the sale of 7,517,168 shares of common stock at $40 per share, amounting to approximately $300.7 million. According to InvestingPro, the stock currently trades at $42.35, suggesting continued momentum since the sale.

Following the transaction, CPPIB’s holdings in Waystar were reduced to 29,692,286 shares. The sale was executed on February 24, 2025, and the shares were indirectly owned through CPP Investment Board Private Holdings (4) Inc., as detailed in the filing. Analysts maintain a bullish outlook on Waystar, with price targets ranging from $45 to $55.

This move by CPPIB, a major institutional investor, marks a significant reshuffling of its investment portfolio. With a market capitalization of $7.19 billion and an overall "Good" financial health score from InvestingPro, Waystar maintains strong fundamentals, including a healthy current ratio of 2.55. The transaction underscores the ongoing dynamic between institutional investors and the companies in which they hold substantial stakes. For deeper insights into Waystar’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.

In other recent news, Waystar Holding Corp. reported strong financial results for the fourth quarter of 2024, with revenue reaching $244 million, an 18% increase compared to the same period last year. Earnings per share came in at $0.29, surpassing analyst expectations. The company has also provided a positive revenue outlook for 2025, projecting growth between 7% to 10%. In addition, Waystar announced a public offering of 18 million shares by certain investment funds, with proceeds not benefiting the company directly.

Analysts have responded to Waystar’s performance with positive revisions to stock price targets. Canaccord Genuity raised its price target to $50, maintaining a Buy rating, citing Waystar’s significant growth and successful strategies. Similarly, Goldman Sachs increased its target to $52, highlighting the company’s outperformance in revenue and profitability. Evercore ISI also adjusted its target to $50, noting Waystar’s consistent post-IPO performance and improved financial health.

Waystar’s recent product developments, including AI-driven solutions, have been well-received, contributing to operational efficiencies and enhancing client relationships. Despite concerns over sustaining exceptional revenue growth, analysts from Goldman Sachs and Evercore ISI anticipate potential upside to Waystar’s fiscal year 2025 guidance, supported by ongoing demand trends and market share shifts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.