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

Wabtec (NYSE:WAB) was the target of a significant drop in short interest in the month of January. As of January 30th, there was short interest totaling 1,822,895 shares, a drop of 13.9% from the January 15th total of 2,118,291 shares. Based on an average trading volume of 661,614 shares, the short-interest ratio is currently 2.8 days. Approximately 1.1% of the company’s stock are sold short. Approximately 1.1% of the company’s stock are sold short. Based on an average trading volume of 661,614 shares, the short-interest ratio is currently 2.8 days.

Insider Transactions at Wabtec

In related news, VP David L. Deninno sold 5,000 shares of Wabtec stock in a transaction dated Thursday, December 4th. The stock was sold at an average price of $214.62, for a total transaction of $1,073,100.00. Following the completion of the transaction, the vice president owned 50,450 shares in the company, valued at approximately $10,827,579. This trade represents a 9.02% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Rogerio Mendonca sold 2,019 shares of Wabtec stock in a transaction that occurred on Thursday, December 4th. The stock was sold at an average price of $214.51, for a total value of $433,095.69. Following the transaction, the insider owned 9,516 shares of the company’s stock, valued at $2,041,277.16. This represents a 17.50% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 15,673 shares of company stock worth $3,420,576 in the last 90 days. Company insiders own 1.10% of the company’s stock.

Institutional Investors Weigh In On Wabtec

Several institutional investors have recently added to or reduced their stakes in WAB. Colonial Trust Advisors boosted its holdings in Wabtec by 454.5% in the 2nd quarter. Colonial Trust Advisors now owns 122 shares of the transportation company’s stock worth $26,000 after buying an additional 100 shares during the period. Piscataqua Savings Bank raised its stake in shares of Wabtec by 12,800.0% during the 3rd quarter. Piscataqua Savings Bank now owns 129 shares of the transportation company’s stock valued at $26,000 after purchasing an additional 128 shares during the period. Motco lifted its holdings in Wabtec by 6,600.0% during the 3rd quarter. Motco now owns 134 shares of the transportation company’s stock worth $27,000 after purchasing an additional 132 shares in the last quarter. Clal Insurance Enterprises Holdings Ltd boosted its stake in Wabtec by 125.9% in the 4th quarter. Clal Insurance Enterprises Holdings Ltd now owns 131 shares of the transportation company’s stock worth $28,000 after purchasing an additional 73 shares during the period. Finally, Manchester Capital Management LLC lifted its holdings in shares of Wabtec by 122.0% in the fourth quarter. Manchester Capital Management LLC now owns 131 shares of the transportation company’s stock worth $28,000 after buying an additional 72 shares in the last quarter. 91.69% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

WAB has been the subject of a number of research analyst reports. Citigroup boosted their price objective on Wabtec from $258.00 to $283.00 and gave the stock a “buy” rating in a report on Thursday, February 12th. Wells Fargo & Company boosted their price target on Wabtec from $224.00 to $270.00 and gave the stock an “equal weight” rating in a report on Friday, February 13th. Susquehanna set a $300.00 target price on shares of Wabtec in a research report on Thursday, February 12th. Wall Street Zen upgraded Wabtec from a “hold” rating to a “buy” rating in a report on Saturday, February 14th. Finally, Morgan Stanley reaffirmed an “overweight” rating and set a $315.00 price target on shares of Wabtec in a research note on Tuesday. Eight analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $269.00.

Wabtec Price Performance

Shares of NYSE WAB opened at $259.30 on Thursday. The firm’s 50-day moving average price is $229.14 and its 200-day moving average price is $208.74. Wabtec has a 1-year low of $151.81 and a 1-year high of $263.66. The firm has a market capitalization of $44.22 billion, a P/E ratio of 37.97, a P/E/G ratio of 1.97 and a beta of 1.01. The company has a current ratio of 1.11, a quick ratio of 0.57 and a debt-to-equity ratio of 0.38.

Wabtec (NYSE:WAB) last announced its earnings results on Wednesday, February 11th. The transportation company reported $2.10 EPS for the quarter, beating the consensus estimate of $2.08 by $0.02. The company had revenue of $2.97 billion during the quarter, compared to the consensus estimate of $2.86 billion. Wabtec had a net margin of 10.48% and a return on equity of 14.12%. The firm’s revenue for the quarter was up 14.8% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.68 earnings per share. Wabtec has set its FY 2026 guidance at 10.050-10.450 EPS. Equities research analysts anticipate that Wabtec will post 8.54 earnings per share for the current fiscal year.

Wabtec announced that its Board of Directors has initiated a stock buyback program on Wednesday, February 11th that authorizes the company to buyback $1.20 billion in shares. This buyback authorization authorizes the transportation company to buy up to 2.9% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s leadership believes its stock is undervalued.

Wabtec Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, March 2nd. Investors of record on Tuesday, February 17th will be given a dividend of $0.31 per share. The ex-dividend date is Tuesday, February 17th. This is an increase from Wabtec’s previous quarterly dividend of $0.25. This represents a $1.24 annualized dividend and a yield of 0.5%. Wabtec’s dividend payout ratio (DPR) is currently 18.16%.

About Wabtec

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.