Beutel Goodman & Co Ltd. Sells 132,903 Shares of Wabtec $WAB

Key Points

• Beutel Goodman cut its Wabtec stake by 15.7%, selling 132,903 shares in the third quarter; it still held 713,508 shares, valued at about $204.9 million.
• Wabtec reported quarterly EPS of $2.83, beating estimates of $2.73, while revenue of $3.12 billion fell short of forecasts. Analysts’ consensus rating was “Moderate Buy,” with a $320.18 average price target.
• Wabtec declared a quarterly dividend of $0.31 per share, or $1.24 annualized, representing a 0.4% yield.

Beutel Goodman & Co Ltd. lowered its stake in shares of Wabtec (NYSE:WAB - Free Report) by 15.7% in the third quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 713,508 shares of the transportation company's stock after selling 132,903 shares during the quarter. Wabtec comprises 1.6% of Beutel Goodman & Co Ltd.'s portfolio, making the stock its 28th largest holding. Beutel Goodman & Co Ltd. owned approximately 0.43% of Wabtec worth $204,905,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other large investors have also recently added to or reduced their stakes in WAB. Resona Asset Management Co. Ltd. raised its holdings in Wabtec by 348.6% in the 2nd quarter. Resona Asset Management Co. Ltd. now owns 233,300 shares of the transportation company's stock worth $62,806,000 after acquiring an additional 181,296 shares during the period. QRG Capital Management Inc. lifted its position in Wabtec by 5.5% during the 2nd quarter. QRG Capital Management Inc. now owns 93,442 shares of the transportation company's stock worth $25,192,000 after acquiring an additional 4,878 shares during the last quarter. Hsbc Holdings PLC boosted its holdings in Wabtec by 15.0% during the first quarter. Hsbc Holdings PLC now owns 351,769 shares of the transportation company's stock valued at $87,735,000 after acquiring an additional 45,760 shares during the period. Copeland Capital Management LLC boosted its holdings in Wabtec by 861.4% during the first quarter. Copeland Capital Management LLC now owns 46,707 shares of the transportation company's stock valued at $11,673,000 after acquiring an additional 41,849 shares during the period. Finally, State Street Corp boosted its holdings in Wabtec by 2.1% during the second quarter. State Street Corp now owns 7,905,748 shares of the transportation company's stock valued at $2,131,390,000 after acquiring an additional 164,806 shares during the period. Institutional investors own 91.69% of the company's stock.

Insider Activity

In related news, CEO Rafael Santana sold 1,087 shares of Wabtec stock in a transaction dated Monday, October 5th. The stock was sold at an average price of $291.79, for a total transaction of $317,175.73. Following the sale, the chief executive officer directly owned 116,155 shares of the company's stock, valued at $33,892,867.45. This trade represents a 0.93% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Gregory Sbrocco sold 952 shares of Wabtec stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $300.00, for a total value of $285,600.00. Following the sale, the executive vice president directly owned 21,043 shares in the company, valued at approximately $6,312,900. This trade represents a 4.33% decrease in their ownership of the stock. 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 90 days, insiders sold 5,289 shares of company stock valued at $1,555,741. Insiders own 0.57% of the company's stock.

Wall Street Analyst Weigh In

WAB has been the topic of several research analyst reports. Rothschild & Co Redburn lowered their price target on Wabtec from $293.00 to $292.00 and set a "buy" rating on the stock in a research report on Wednesday, July 29th. Wall Street Zen cut Wabtec from a "buy" rating to a "hold" rating in a research report on Sunday, August 2nd. Weiss Ratings raised Wabtec from a "buy (b+)" rating to a "buy (a-)" rating in a research report on Monday, October 26th. Susquehanna increased their target price on Wabtec from $305.00 to $340.00 and gave the company a "positive" rating in a research note on Thursday, July 23rd. Finally, Citigroup lowered their target price on Wabtec from $338.00 to $334.00 and set a "buy" rating on the stock in a report on Thursday, October 22nd. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $320.18.

Wabtec Trading Up 5.2%

Shares of WAB stock opened at $298.38 on Tuesday. Wabtec has a 1 year low of $194.93 and a 1 year high of $306.64. The firm's fifty day simple moving average is $284.61 and its 200 day simple moving average is $269.47. The firm has a market capitalization of $50.07 billion, a P/E ratio of 37.07, a price-to-earnings-growth ratio of 1.65 and a beta of 0.93. The company has a current ratio of 1.10, a quick ratio of 0.56 and a debt-to-equity ratio of 0.41.

Wabtec (NYSE:WAB - Get Free Report) last issued its quarterly earnings results on Wednesday, October 21st. The transportation company reported $2.83 earnings per share for the quarter, beating analysts' consensus estimates of $2.73 by $0.10. The firm had revenue of $3.12 billion during the quarter, compared to the consensus estimate of $3.20 billion. Wabtec had a net margin of 11.20% and a return on equity of 15.72%. The business's revenue was up 8.1% on a year-over-year basis. During the same period in the prior year, the firm earned $2.32 EPS. As a group, sell-side analysts predict that Wabtec will post 10.97 EPS for the current year.

Wabtec Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Stockholders of record on Tuesday, November 17th will be issued a dividend of $0.31 per share. The ex-dividend date is Tuesday, November 17th. This represents a $1.24 annualized dividend and a dividend yield of 0.4%. Wabtec's payout ratio is presently 15.40%.

About Wabtec

Wabtec Corporation NYSE: WAB, also known as Westinghouse Air Brake Technologies, supplies equipment, systems and services for the freight rail and passenger transit industries. Its products include locomotives, braking and train control systems, propulsion equipment, and components designed to support rail safety and performance.

The company also provides aftermarket services, including maintenance, modernization, parts and digital solutions for rail operators. Its offerings serve freight railroads, transit agencies and other customers in the global rail industry.

Wabtec was formed in 1999 through the merger of Westinghouse Air Brake Company and MotivePower Industries, bringing together businesses with roots in rail equipment dating to the 19th century.

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