Wall Street Zen Upgrades Wabtec (NYSE:WAB) to Buy

Wabtec (NYSE:WAB) was upgraded by analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Monday.

A number of other brokerages also recently issued reports on WAB. JPMorgan Chase & Co. lifted their price target on shares of Wabtec from $215.00 to $245.00 and gave the stock a “neutral” rating in a research note on Wednesday, January 14th. Bank of America lifted their price objective on shares of Wabtec from $228.00 to $233.00 and gave the stock a “buy” rating in a research report on Thursday, November 13th. Wolfe Research upgraded shares of Wabtec from a “peer perform” rating to an “outperform” rating and set a $245.00 target price for the company in a research note on Thursday, January 8th. Weiss Ratings reissued a “buy (b)” rating on shares of Wabtec in a report on Wednesday, January 21st. Finally, Susquehanna set a $300.00 price target on Wabtec in a research note on Thursday, February 12th. Eight equities research 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, Wabtec presently has an average rating of “Moderate Buy” and a consensus price target of $269.00.

Wabtec Trading Down 1.1%

WAB opened at $260.70 on Monday. The business has a fifty day moving average price of $237.61 and a 200 day moving average price of $213.49. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.11 and a quick ratio of 0.57. Wabtec has a 12 month low of $151.81 and a 12 month high of $266.27. The stock has a market capitalization of $44.45 billion, a price-to-earnings ratio of 38.17, a PEG ratio of 1.99 and a beta of 0.99.

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

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

Insider Activity at Wabtec

In other news, insider Michael Fetsko sold 5,058 shares of Wabtec stock in a transaction dated Friday, December 12th. The stock was sold at an average price of $215.72, for a total transaction of $1,091,111.76. Following the sale, the insider owned 36,882 shares in the company, valued at approximately $7,956,185.04. The trade was a 12.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO John A. Olin sold 11,000 shares of the company’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 directly owned 60,487 shares of the company’s stock, valued at approximately $15,926,227.10. This trade represents a 15.39% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 40,211 shares of company stock valued at $9,885,467. Corporate insiders own 1.10% of the company’s stock.

Hedge Funds Weigh In On Wabtec

A number of hedge funds have recently modified their holdings of WAB. Y Intercept Hong Kong Ltd bought a new stake in Wabtec during the second quarter worth approximately $334,000. Assetmark Inc. increased its holdings in shares of Wabtec by 12.1% in the second quarter. Assetmark Inc. now owns 8,236 shares of the transportation company’s stock valued at $1,724,000 after buying an additional 887 shares in the last quarter. Savvy Advisors Inc. acquired a new stake in shares of Wabtec during the 2nd quarter valued at $234,000. State of Michigan Retirement System boosted its stake in shares of Wabtec by 1.0% during the 2nd quarter. State of Michigan Retirement System now owns 50,016 shares of the transportation company’s stock worth $10,471,000 after acquiring an additional 500 shares in the last quarter. Finally, Hutchens & Kramer Investment Management Group LLC bought a new stake in shares of Wabtec during the 2nd quarter worth $219,000. 91.69% of the stock is currently owned by hedge funds and other institutional investors.

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.