Wabtec (NYSE:WAB) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Wabtec has a “Moderate Buy” consensus rating: Ten of 12 analysts recommend buying the stock, with an average 12-month price target of $313.82 versus a recent price near $290.
• Recent operating momentum is strong: Wabtec beat quarterly EPS and revenue estimates, with revenue rising 17.5% year over year, while securing major rail contracts in Guinea worth more than $700 million and in Brazil worth approximately $254 million.
• Valuation remains a consideration: Shares trade near their 52-week high at roughly 39 times earnings, and insiders have sold stock recently, although the company continues to pay a quarterly dividend and analysts remain broadly positive.

Wabtec (NYSE:WAB - Get Free Report) has been given a consensus rating of "Moderate Buy" by the twelve research firms that are currently covering the firm, MarketBeat.com reports. Two investment analysts have rated the stock with a hold rating and ten have given a buy rating to the company. The average 12 month price target among brokerages that have covered the stock in the last year is $313.82.

WAB has been the topic of several recent research reports. Citigroup boosted their price objective on shares of Wabtec from $311.00 to $341.00 and gave the company a "buy" rating in a research note on Thursday, August 13th. Wells Fargo & Company raised their target price on shares of Wabtec from $284.00 to $315.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 23rd. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Wabtec in a report on Friday, July 17th. Susquehanna increased their price target on shares of Wabtec from $305.00 to $340.00 and gave the stock a "positive" rating in a report on Thursday, July 23rd. Finally, KeyCorp increased their price target on shares of Wabtec from $308.00 to $340.00 and gave the stock an "overweight" rating in a report on Thursday, July 23rd.

Wabtec Stock Down 0.9%

Wabtec stock opened at $289.62 on Friday. The stock has a 50 day moving average of $289.03 and a two-hundred day moving average of $270.18. Wabtec has a twelve month low of $186.06 and a twelve month high of $306.64. The stock has a market capitalization of $48.92 billion, a price-to-earnings ratio of 38.93, a PEG ratio of 1.96 and a beta of 0.92. The company has a current ratio of 1.12, a quick ratio of 0.59 and a debt-to-equity ratio of 0.44.

Wabtec (NYSE:WAB - Get Free Report) last released its earnings results on Wednesday, July 22nd. The transportation company reported $2.76 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.60 by $0.16. Wabtec had a return on equity of 15.10% and a net margin of 10.59%.The business had revenue of $3.18 billion for the quarter, compared to analyst estimates of $3.07 billion. During the same quarter in the previous year, the company posted $2.27 earnings per share. The company's revenue for the quarter was up 17.5% compared to the same quarter last year. Wabtec has set its FY 2026 guidance at 10.600-10.900 EPS. As a group, research analysts expect that Wabtec will post 10.89 earnings per share for the current year.

Wabtec Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 1st. Stockholders of record on Tuesday, August 18th were paid a dividend of $0.31 per share. This represents a $1.24 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend was Tuesday, August 18th. Wabtec's dividend payout ratio is 16.67%.

Key Stories Impacting Wabtec

Here are the key news stories impacting Wabtec this week:

• Positive Sentiment: Major Africa services contract: Wabtec secured a rail-services agreement worth more than $700 million with La Compagnie du TransGuinéen for Guinea’s Simandou mining and logistics project. Including previously announced locomotive orders, Wabtec’s Simandou-related agreements now exceed $1.2 billion. The deal expands recurring services revenue and deepens the company’s African presence. Wabtec Secures $700M+ Rail Services Deal, Expands Africa Footprint
• Positive Sentiment: Brazil locomotive order: Brazilian rail operator MRS Logística plans to invest approximately $254 million, or 1.3 billion Brazilian reais, in new Wabtec locomotives and fleet modernization. The order supports near-term equipment demand and reinforces Wabtec’s position in Latin American freight rail. Wabtec Lands $254MM MRS Logistics Contract
• Positive Sentiment: Supportive analyst view: Bank of America reiterated a Buy rating and a $322 price target, citing Wabtec’s expanding international services business and robust backlog. This target implies additional upside from the recent trading level. Analyst Reiterates Buy on Wabtec
• Neutral Sentiment: Battery-electric locomotive testing: Union Pacific deployed its first two battery-electric locomotives in Southern California for real-world testing. The development is a positive validation of zero-emission rail technology, but testing does not yet represent a confirmed Wabtec order or material near-term revenue opportunity.
• Negative Sentiment: Valuation and timing concerns: The stock’s decrease suggests investors may be locking in gains or focusing on the time required for these international contracts to contribute to results. With a price-to-earnings ratio near 39 and shares close to their 52-week high, stronger evidence of earnings conversion may be needed for further gains.

Insiders Place Their Bets

In related news, CTO Eric Gebhardt sold 7,100 shares of the company's stock in a transaction on Friday, July 24th. The stock was sold at an average price of $299.27, for a total transaction of $2,124,817.00. Following the transaction, the chief technology officer owned 19,153 shares of the company's stock, valued at $5,731,918.31. This represents a 27.04% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Gregory Sbrocco sold 952 shares of the stock in a transaction on Monday, August 17th. The stock was sold at an average price of $300.00, for a total value of $285,600.00. Following the completion of the transaction, the executive vice president owned 21,043 shares of the company's stock, valued at $6,312,900. The trade was a 4.33% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 17,628 shares of company stock worth $5,220,523. Corporate insiders own 0.57% of the company's stock.

Institutional Investors Weigh In On Wabtec

Several institutional investors have recently made changes to their positions in the stock. Meeder Asset Management Inc. acquired a new stake in shares of Wabtec in the second quarter valued at about $26,000. Whipplewood Advisors LLC acquired a new position in Wabtec during the first quarter worth about $25,000. Bell Investment Advisors Inc acquired a new position in Wabtec during the second quarter worth about $29,000. Fiduciary Financial Advisors purchased a new position in Wabtec in the second quarter valued at about $29,000. Finally, Clal Insurance Enterprises Holdings Ltd lifted its position in shares of Wabtec by 125.9% during the 4th quarter. Clal Insurance Enterprises Holdings Ltd now owns 131 shares of the transportation company's stock valued at $28,000 after acquiring an additional 73 shares during the period. 91.69% of the stock is currently owned by hedge funds and other institutional investors.

About Wabtec

Westinghouse Air Brake Technologies Corporation, known as Wabtec, is a global provider of equipment, systems, and services for the freight and transit rail industries. The company develops technologies designed to improve the safety, efficiency, reliability, and environmental performance of rail transportation.

Wabtec's products and services include locomotives and locomotive components, braking systems, rail-control and signaling technologies, digital train-management solutions, and equipment for freight cars and passenger rail vehicles.

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