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  5. FSZ: Hi 5i Given that FSZ valued its own company share price at $9. [Fiera Capital Corporation Class A Subordinate Voting Shares]
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Investment Q&A

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Q: Hi 5i

Given that FSZ valued its own company share price at $9.80 ($34.89/3.56), why should investors be paying a premium to buy this stock today ($10.20 after decline)?

With new CEO in place now, what is to say he doesn't decide to cut the dividend that we all seem to be hanging around for these days?

Dave



Asked by Dave on January 14, 2022
5i Research Answer:

In a secondary transaction the company does not set the selling price, but may be consulted. But it is up to the selling shareholders. FSZ has agreed to buy and cancel more than 3M shares at $9.80, so we would see this as a positive, not a negative. The stock is thinly traded, so institutions like the deal, but individual investors are still willing to pay more, especially if they were not able to buy on the block of shares. The CEO transition has been in place for three years. We would not expect strategy changes.