Bank of New York Mellon Corp Trims Stock Position in Wabtec $WAB

Key Points

• Bank of New York Mellon cut its Wabtec stake by 4.2% in the fourth quarter, though it still held 812,013 shares worth about $173.3 million at the end of the period.
• Wall Street sentiment remains constructive: analysts have a Moderate Buy consensus on Wabtec, with 10 Buy ratings and a consensus price target of $289.82.
• Wabtec posted strong quarterly results, beating EPS expectations at $2.71 per share while revenue rose 13% year over year; the company also authorized a $1.2 billion share buyback and recently paid a quarterly dividend of $0.31 per share.

Bank of New York Mellon Corp reduced its position in shares of Wabtec (NYSE:WAB - Free Report) by 4.2% during the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 812,013 shares of the transportation company's stock after selling 35,391 shares during the quarter. Bank of New York Mellon Corp owned 0.47% of Wabtec worth $173,324,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Geode Capital Management LLC lifted its stake in Wabtec by 0.9% during the fourth quarter. Geode Capital Management LLC now owns 4,366,157 shares of the transportation company's stock worth $928,249,000 after purchasing an additional 38,029 shares in the last quarter. Wellington Management Group LLP lifted its stake in Wabtec by 3.6% during the third quarter. Wellington Management Group LLP now owns 3,304,183 shares of the transportation company's stock worth $662,390,000 after purchasing an additional 116,329 shares in the last quarter. Nordea Investment Management AB raised its stake in shares of 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 acquiring an additional 1,095,083 shares in the last quarter. Boston Partners boosted its holdings in Wabtec by 1.9% in the third quarter. Boston Partners now owns 2,304,832 shares of the transportation company's stock valued at $462,057,000 after purchasing an additional 43,376 shares during the period. Finally, Farallon Capital Management LLC boosted its holdings in Wabtec by 68.6% in the third quarter. Farallon Capital Management LLC now owns 2,205,098 shares of the transportation company's stock valued at $442,056,000 after purchasing an additional 896,900 shares during the period. Hedge funds and other institutional investors own 91.69% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on WAB. JPMorgan Chase & Co. decreased their target price on Wabtec from $290.00 to $280.00 and set a "neutral" rating for the company in a report on Friday, April 10th. Jefferies Financial Group reissued a "buy" rating and set a $290.00 target price (down from $300.00) on shares of Wabtec in a research report on Tuesday, March 31st. Rothschild & Co Redburn raised Wabtec from a "neutral" rating to a "buy" rating and raised their target price for the stock from $262.00 to $285.00 in a research report on Thursday, March 26th. Wolfe Research reiterated an "outperform" rating and set a $303.00 target price on shares of Wabtec in a research report on Thursday, April 23rd. Finally, Stephens lifted their target price on Wabtec from $230.00 to $290.00 and gave the stock an "overweight" rating in a research report on Thursday, February 12th. Ten analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $289.82.

Wabtec Stock Down 0.7%

Shares of Wabtec stock opened at $260.77 on Friday. The business has a 50-day moving average of $261.06 and a 200-day moving average of $241.22. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.02 and a quick ratio of 0.54. The company has a market capitalization of $44.25 billion, a PE ratio of 36.88, a P/E/G ratio of 1.88 and a beta of 0.94. Wabtec has a 1-year low of $184.26 and a 1-year high of $275.84.

Wabtec (NYSE:WAB - Get Free Report) last posted its quarterly earnings results on Wednesday, April 22nd. The transportation company reported $2.71 EPS for the quarter, topping analysts' consensus estimates of $2.62 by $0.09. The business had revenue of $2.95 billion during the quarter, compared to the consensus estimate of $3.08 billion. Wabtec had a return on equity of 14.52% and a net margin of 10.52%.The company's revenue for the quarter was up 13.0% compared to the same quarter last year. During the same period last year, the firm earned $2.28 earnings per share. Wabtec has set its FY 2026 guidance at 10.250-10.650 EPS. As a group, equities analysts forecast that Wabtec will post 10.61 EPS for the current fiscal year.

Wabtec Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, June 3rd. Shareholders of record on Friday, May 22nd were issued a $0.31 dividend. The ex-dividend date of this dividend was Friday, May 22nd. This represents a $1.24 annualized dividend and a dividend yield of 0.5%. Wabtec's dividend payout ratio is currently 17.54%.

Wabtec declared that its Board of Directors has approved a share buyback plan on Wednesday, February 11th that authorizes the company to buyback $1.20 billion in shares. This buyback authorization authorizes the transportation company to reacquire up to 2.9% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's board believes its shares are undervalued.

Insider Buying and Selling at Wabtec

In other Wabtec news, EVP Gina Trombley sold 4,013 shares of the business's stock in a transaction on Thursday, March 12th. The shares were sold at an average price of $241.87, for a total transaction of $970,624.31. Following the completion of the transaction, the executive vice president owned 13,841 shares of the company's stock, valued at $3,347,722.67. The trade was a 22.48% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Rafael Santana sold 60,852 shares of the business's stock in a transaction on Tuesday, April 14th. The stock was sold at an average price of $268.89, for a total transaction of $16,362,494.28. Following the transaction, the chief executive officer directly owned 128,729 shares of the company's stock, valued at approximately $34,613,940.81. This represents a 32.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 67,191 shares of company stock worth $17,922,608 in the last ninety days. 0.57% of the stock is owned by corporate insiders.

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.

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