Geode Capital Management LLC Boosts Holdings in Wabtec $WAB

Key Points

• Geode Capital Management increased its Wabtec stake by 0.9% in the fourth quarter, ending with 4.37 million shares worth about $928.2 million and representing roughly 2.55% of the company.
• Wabtec reported better-than-expected EPS of $2.71 for the latest quarter, though revenue of $2.95 billion came in below estimates. The company also raised its full-year guidance and is targeting FY2026 EPS of 10.25 to 10.65.
• Analyst sentiment remains constructive overall, with 10 Buy ratings and 2 Hold ratings and a consensus price target of $289.82, even after some recent target cuts and rating changes.

Geode Capital Management LLC grew its position in shares of Wabtec (NYSE:WAB - Free Report) by 0.9% during the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 4,366,157 shares of the transportation company's stock after purchasing an additional 38,029 shares during the period. Geode Capital Management LLC owned approximately 2.55% of Wabtec worth $928,249,000 as of its most recent SEC filing.

Other hedge funds also recently made changes to their positions in the company. BOKF NA raised its stake in shares of Wabtec by 66.7% during the fourth quarter. BOKF NA now owns 175 shares of the transportation company's stock valued at $37,000 after purchasing an additional 70 shares during the period. FNY Investment Advisers LLC acquired a new stake in shares of Wabtec during the fourth quarter valued at about $42,000. Westfuller Advisors LLC increased its position in shares of Wabtec by 83.2% during the fourth quarter. Westfuller Advisors LLC now owns 207 shares of the transportation company's stock worth $44,000 after acquiring an additional 94 shares during the last quarter. Steigerwald Gordon & Koch Inc. increased its position in shares of Wabtec by 258.3% during the fourth quarter. Steigerwald Gordon & Koch Inc. now owns 215 shares of the transportation company's stock worth $46,000 after acquiring an additional 155 shares during the last quarter. Finally, Salomon & Ludwin LLC increased its position in shares of Wabtec by 35.6% during the fourth quarter. Salomon & Ludwin LLC now owns 217 shares of the transportation company's stock worth $47,000 after acquiring an additional 57 shares during the last quarter. Hedge funds and other institutional investors own 91.69% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on the company. JPMorgan Chase & Co. cut their price target on Wabtec from $290.00 to $280.00 and set a "neutral" rating on the stock in a research note on Friday, April 10th. Wall Street Zen cut Wabtec from a "buy" rating to a "hold" rating in a research note on Saturday, March 14th. Weiss Ratings reiterated a "buy (b)" rating on shares of Wabtec in a research note on Monday, April 20th. Rothschild & Co Redburn upgraded Wabtec from a "neutral" rating to a "buy" rating and boosted their price target for the stock from $262.00 to $285.00 in a research note on Thursday, March 26th. Finally, Wells Fargo & Company lifted their price target on shares of Wabtec from $270.00 to $284.00 and gave the stock an "equal weight" rating in a research note on Thursday, April 23rd. Ten investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $289.82.

Wabtec Stock Performance

Shares of WAB opened at $261.27 on Friday. The business's fifty day moving average price is $259.09 and its 200 day moving average price is $239.31. Wabtec has a 12-month low of $184.26 and a 12-month high of $275.84. The stock has a market capitalization of $44.33 billion, a PE ratio of 36.95, a price-to-earnings-growth ratio of 1.87 and a beta of 0.97. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.02 and a quick ratio of 0.54.

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

Wabtec Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 3rd. Investors of record on Friday, May 22nd will be paid a dividend of $0.31 per share. The ex-dividend date is Friday, May 22nd. This represents a $1.24 annualized dividend and a yield of 0.5%. Wabtec's dividend payout ratio is 17.54%.

Wabtec declared that its Board of Directors has approved a share 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 repurchase up to 2.9% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's board of directors believes its shares are undervalued.

Insider Activity

In related news, CEO Rafael Santana sold 1,163 shares of the stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $263.77, for a total transaction of $306,764.51. Following the sale, the chief executive officer owned 127,566 shares in the company, valued at $33,648,083.82. This represents a 0.90% decrease in their ownership of the stock. The transaction was disclosed in a legal 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 Gina Trombley sold 4,013 shares of the stock in a transaction dated Thursday, March 12th. The stock was sold at an average price of $241.87, for a total transaction of $970,624.31. Following the sale, the executive vice president owned 13,841 shares in the company, valued at approximately $3,347,722.67. This trade represents a 22.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 67,191 shares of company stock worth $17,922,608. 0.57% of the stock is owned by company insiders.

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.

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