Handelsbanken Fonder AB Increases Stake in Wabtec $WAB

Key Points

• Handelsbanken Fonder AB increased its Wabtec stake by 40% in the fourth quarter, adding 41,877 shares to bring its total holding to 146,676 shares worth about $31.3 million.
• Wabtec reported mixed quarterly results, with EPS of $2.71 beating estimates, but revenue of $2.95 billion falling short of expectations despite 13% year-over-year growth.
• The company is returning capital to shareholders through a $1.2 billion stock buyback program and a quarterly dividend of $0.31 per share, while analysts currently rate the stock a Moderate Buy with an average target of $289.82.

Handelsbanken Fonder AB boosted its stake in shares of Wabtec (NYSE:WAB - Free Report) by 40.0% in the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 146,676 shares of the transportation company's stock after acquiring an additional 41,877 shares during the quarter. Handelsbanken Fonder AB owned 0.09% of Wabtec worth $31,308,000 at the end of the most recent reporting period.

Several other institutional investors also recently bought and sold shares of the stock. BOKF NA grew its holdings in Wabtec by 66.7% in 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 Wabtec in the fourth quarter valued at approximately $42,000. Root Financial Partners LLC acquired a new stake in Wabtec in the third quarter valued at approximately $44,000. Westfuller Advisors LLC grew its holdings in Wabtec by 83.2% in the fourth quarter. Westfuller Advisors LLC now owns 207 shares of the transportation company's stock valued at $44,000 after purchasing an additional 94 shares during the period. Finally, Steigerwald Gordon & Koch Inc. grew its holdings in Wabtec by 258.3% in the fourth quarter. Steigerwald Gordon & Koch Inc. now owns 215 shares of the transportation company's stock valued at $46,000 after purchasing an additional 155 shares during the period. 91.69% of the stock is currently owned by hedge funds and other institutional investors.

Wabtec Stock Performance

NYSE WAB opened at $255.31 on Wednesday. The stock's fifty day moving average is $256.23 and its two-hundred day moving average is $236.48. The firm has a market capitalization of $43.32 billion, a P/E ratio of 36.11, a price-to-earnings-growth ratio of 1.86 and a beta of 0.97. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.54 and a current ratio of 1.02. Wabtec has a fifty-two week low of $184.26 and a fifty-two week high of $275.84.

Wabtec (NYSE:WAB - Get Free Report) last announced its quarterly earnings results on Wednesday, April 22nd. The transportation company reported $2.71 EPS for the quarter, beating 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 business had revenue of $2.95 billion for the quarter, compared to analyst estimates of $3.08 billion. During the same quarter in the prior year, the company posted $2.28 EPS. The company's quarterly revenue was up 13.0% on a year-over-year basis. Wabtec has set its FY 2026 guidance at 10.250-10.650 EPS. On average, research analysts anticipate that Wabtec will post 10.61 earnings per share for the current year.

Wabtec announced that its board has initiated a stock buyback plan on Wednesday, February 11th that permits the company to repurchase $1.20 billion in outstanding shares. This repurchase authorization permits the transportation company to reacquire up to 2.9% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's management believes its shares are undervalued.

Wabtec Announces Dividend

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

Insider Transactions at Wabtec

In related news, EVP Gina Trombley sold 4,013 shares of the business's stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $241.87, for a total value 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. The trade was a 22.48% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Nalin Jain sold 7,936 shares of the business's stock in a transaction on Wednesday, February 25th. The shares were sold at an average price of $264.09, for a total value of $2,095,818.24. Following the completion of the sale, the insider owned 6,364 shares in the company, valued at $1,680,668.76. This represents a 55.50% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 91,729 shares of company stock worth $24,387,500. 0.57% of the stock is owned by corporate insiders.

Analyst Ratings Changes

Several equities analysts have issued reports on WAB shares. KeyCorp increased their price objective on shares of Wabtec from $240.00 to $308.00 and gave the company an "overweight" rating in a report on Thursday, February 12th. Wells Fargo & Company boosted their target price 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. Susquehanna restated a "positive" rating and set a $305.00 price target on shares of Wabtec in a research report on Thursday, April 23rd. JPMorgan Chase & Co. reduced their price target on shares of Wabtec from $290.00 to $280.00 and set a "neutral" rating for the company in a research report on Friday, April 10th. Finally, Wall Street Zen downgraded shares of Wabtec from a "buy" rating to a "hold" rating in a research report on Saturday, March 14th. Ten analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $289.82.

Wabtec 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.