Institutional Investor Takes Profits on Thomson Reuters as Stock Struggles After a Strong Run

Montreal-based Jarislowsky Fraser disclosed the sale of 124,059 shares of Thomson Reuters (NASDAQ:TRI) for an estimated $22.8 million in its SEC filing for the period ended September 30.

What Happened

Investment management firm Jarislowsky Fraser reduced its holding in Thomson Reuters (NASDAQ:TRI) by 124,059 shares in the third quarter, according to its Form 13-F filed with the Securities and Exchange Commission on Tuesday. The estimated transaction value of the sale was approximately $22.8 million, calculated using the average share price during the period. The fund held nearly 2.9 million Thomson Reuters shares worth $448.3 million at the end of the quarter.

What Else to Know

The fund's post-transaction position accounts for 2.5% of the fund’s 13F assets under management as of September 30.

Top five holdings after the filing:

• NYSE:BN: $1 billion (5.6% of AUM)
• NYSE:TD: $938 million (5.2% of AUM)
• NYSE:CNI: $836.8 million (4.6% of AUM)
• NASDAQ:OTEX: $790.7 million (4.3% of AUM)
• TSX:BMO: $760.4 million (4.2% of AUM)

As of Thursday, shares of Thomson Reuters were priced at $162.78.

Over the past year, the stock has fallen 2.5%, while the S&P 500 has climbed 16%.

Company Overview

Company Snapshot

• Thomson Reuters provides business information services across legal, tax, accounting, news, and print segments, with flagship offerings in legal research, workflow solutions, and global news distribution.
• The company serves law firms, corporations, tax and accounting professionals, government entities, and media organizations globally.
• It operates a technology-driven platform that delivers content and workflow tools to professional clients worldwide.

Thomson Reuters Corporation is a leading global provider of business information services, specializing in legal, tax, accounting, and news solutions. The company leverages a diversified portfolio and technology-driven platforms to deliver critical content and workflow tools to professional clients.

Foolish Take

Jarislowsky Fraser’s decision to trim its Thomson Reuters stake seemingly signals a slight rebalancing—not a retreat. The firm sold about 124,000 shares worth $22.8 million last quarter but still maintains a substantial $448 million position, making the media and data giant one of its top holdings (though outside the top five). The move fits a pattern across Jarislowsky’s recent filings: modest profit-taking in mature positions like Thomson Reuters and Shopify, while deploying capital into industrial and tech names such as RB Global and Open Text.

Thomson Reuters has been a steady compounder for years, anchored by its legal and tax software segments and, until last year, a stake in the London Stock Exchange Group, but its shares have lagged broader markets this year—down about 2.5% versus the S&P 500’s 16% gain. Its second-quarter results, in particular, disappointed investors, with earnings per share falling year over year despite 9% organic revenue growth among its big three segments and a 5% rise in adjusted EBITDA.

For long-term investors, Jarislowsky’s trim looks tactical: a way to lock in gains after a multiyear rally while keeping exposure to a resilient, high-margin information business positioned to benefit from continued digital transformation in legal and tax workflows.

Glossary

Assets under management (AUM): The total market value of all investments managed by a fund or investment firm.

Form 13-F: A quarterly report filed by institutional investment managers to disclose their equity holdings to the Securities and Exchange Commission (SEC).

Post-trade stake: The number of shares or value of a holding remaining after a transaction is completed.

Reportable U.S. equity assets: U.S. stocks that must be disclosed in regulatory filings by institutional managers.

Top five holdings: The five largest investments in a fund's portfolio, ranked by market value.

Trading days: Days when financial markets are open for buying and selling securities.

TTM: The 12-month period ending with the most recent quarterly report.

Workflow solutions: Software or tools designed to improve and automate business processes for professionals.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Brookfield and Brookfield Corporation. The Motley Fool recommends Canadian National Railway. The Motley Fool has a disclosure policy.