Wabtec (NYSE:WAB) Sees Large Decrease in Short Interest

Wabtec (NYSE:WAB) was the recipient of a significant decrease in short interest in March. As of March 13th, there was short interest totaling 1,852,504 shares, a decrease of 19.0% from the February 26th total of 2,287,421 shares. Approximately 1.1% of the shares of the company are sold short. Based on an average daily volume of 916,528 shares, the short-interest ratio is currently 2.0 days.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on WAB. Wells Fargo & Company upped their target price on shares of Wabtec from $224.00 to $270.00 and gave the stock an “equal weight” rating in a research report on Friday, February 13th. Susquehanna set a $300.00 target price on Wabtec in a report on Thursday, February 12th. Citigroup boosted their price target on Wabtec from $258.00 to $283.00 and gave the stock a “buy” rating in a report on Thursday, February 12th. Stephens upped their price objective on Wabtec from $230.00 to $290.00 and gave the company an “overweight” rating in a research report on Thursday, February 12th. Finally, JPMorgan Chase & Co. increased their price objective on Wabtec from $215.00 to $245.00 and gave the company a “neutral” rating in a research note on Wednesday, January 14th. Ten equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, Wabtec currently has a consensus rating of “Moderate Buy” and a consensus price target of $272.08.

Wabtec Trading Up 2.6%

Shares of WAB traded up $6.37 on Wednesday, hitting $256.28. 302,276 shares of the stock traded hands, compared to its average volume of 835,301. The company has a quick ratio of 0.57, a current ratio of 1.11 and a debt-to-equity ratio of 0.38. The firm has a market capitalization of $43.70 billion, a P/E ratio of 37.50, a P/E/G ratio of 1.79 and a beta of 0.99. The stock’s 50 day moving average is $246.37 and its two-hundred day moving average is $220.68. Wabtec has a 1 year low of $151.81 and a 1 year high of $266.27.

Wabtec (NYSE:WAB) last announced its earnings results on Wednesday, February 11th. The transportation company reported $2.10 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.08 by $0.02. The firm had revenue of $2.97 billion for the quarter, compared to analyst estimates of $2.86 billion. Wabtec had a net margin of 10.48% and a return on equity of 14.12%. Wabtec’s revenue was up 14.8% compared to the same quarter last year. During the same quarter last year, the business earned $1.68 earnings per share. Wabtec has set its FY 2026 guidance at 10.050-10.450 EPS. As a group, sell-side analysts predict that Wabtec will post 8.54 earnings per share for the current year.

Wabtec Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, March 2nd. Stockholders of record on Tuesday, February 17th were given a $0.31 dividend. This is an increase from Wabtec’s previous quarterly dividend of $0.25. This represents a $1.24 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date of this dividend was Tuesday, February 17th. Wabtec’s dividend payout ratio (DPR) is presently 18.16%.

Wabtec declared that its board has approved a stock buyback plan on Wednesday, February 11th that allows the company to repurchase $1.20 billion in shares. This repurchase authorization allows the transportation company to purchase up to 2.9% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s management believes its stock is undervalued.

Insider Transactions at Wabtec

In related news, CFO John A. Olin sold 11,000 shares of the firm’s stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $263.30, for a total value of $2,896,300.00. Following the completion of the sale, the chief financial officer owned 60,487 shares in the company, valued at $15,926,227.10. This trade represents a 15.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Rafael Santana sold 1,163 shares of Wabtec stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $243.10, for a total value of $282,725.30. Following the completion of the sale, the chief executive officer directly owned 190,744 shares in the company, valued at $46,369,866.40. This represents a 0.61% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 31,512 shares of company stock valued at $8,160,028 over the last 90 days. Insiders own 1.10% of the company’s stock.

Institutional Trading of Wabtec

Hedge funds have recently added to or reduced their stakes in the business. Price T Rowe Associates Inc. MD increased its stake in shares of Wabtec by 20.3% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 7,965,503 shares of the transportation company’s stock valued at $1,700,238,000 after acquiring an additional 1,344,744 shares during the last quarter. State Street Corp boosted its position in shares of Wabtec by 2.6% in the fourth quarter. State Street Corp now owns 7,658,040 shares of the transportation company’s stock worth $1,634,609,000 after acquiring an additional 197,610 shares during the last quarter. Geode Capital Management LLC boosted its position in shares of Wabtec by 0.9% in the fourth quarter. Geode Capital Management LLC now owns 4,366,157 shares of the transportation company’s stock worth $928,249,000 after acquiring an additional 38,029 shares during the last quarter. Wellington Management Group LLP grew its holdings in Wabtec by 3.6% in the third quarter. Wellington Management Group LLP now owns 3,304,183 shares of the transportation company’s stock valued at $662,390,000 after purchasing an additional 116,329 shares during the period. Finally, Nordea Investment Management AB grew its holdings in Wabtec by 55.5% in the fourth quarter. Nordea Investment Management AB now owns 3,069,340 shares of the transportation company’s stock valued at $659,939,000 after purchasing an additional 1,095,083 shares during the period. 91.69% of the stock is owned by institutional investors and hedge funds.

Wabtec Company Profile

Wabtec Corporation (Westinghouse Air Brake Technologies Corporation) is a global provider of equipment, systems and services for the rail industry. The company supplies products and solutions to freight railroads, transit agencies and other industrial operators, focusing on technologies that improve the performance, safety and efficiency of locomotives and rail networks. Wabtec’s business spans new equipment manufacturing, aftermarket parts and services, and digital and control systems for rail operations.

Product and service offerings include locomotive systems and components, braking and air systems, propulsion and traction equipment, signaling and control technologies, and a range of aftermarket services such as maintenance, remanufacturing, parts distribution and fleet modernization.