Hsbc Holdings PLC Acquires 45,760 Shares of Wabtec $WAB

Key Points

• HSBC Holdings PLC increased its Wabtec stake by 15% in the first quarter, buying 45,760 additional shares and bringing its total holding to 351,769 shares worth about $87.7 million.
• Wabtec reported mixed quarterly results: earnings of $2.71 per share beat estimates, while revenue of $2.95 billion fell short of expectations despite rising 13% year over year.
• Analysts remain broadly positive on the stock, with an average “Moderate Buy” rating and a consensus price target of $293.36, while Wabtec also announced a quarterly dividend of $0.31 per share.

Hsbc Holdings PLC grew its holdings in Wabtec (NYSE:WAB - Free Report) by 15.0% during the first quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 351,769 shares of the transportation company's stock after purchasing an additional 45,760 shares during the quarter. Hsbc Holdings PLC owned about 0.21% of Wabtec worth $87,735,000 as of its most recent filing with the SEC.

Several other large investors also recently made changes to their positions in WAB. Whipplewood Advisors LLC acquired a new stake in shares of Wabtec in the first quarter valued at $25,000. Clal Insurance Enterprises Holdings Ltd lifted its position in Wabtec by 125.9% during the 4th quarter. Clal Insurance Enterprises Holdings Ltd now owns 131 shares of the transportation company's stock worth $28,000 after buying an additional 73 shares in the last quarter. Manchester Capital Management LLC grew its holdings in Wabtec by 122.0% during the 4th quarter. Manchester Capital Management LLC now owns 131 shares of the transportation company's stock worth $28,000 after acquiring an additional 72 shares during the last quarter. McMillan Office Inc. bought a new stake in Wabtec during the 4th quarter worth about $31,000. Finally, Reflection Asset Management acquired a new stake in Wabtec in the 4th quarter valued at about $35,000. Institutional investors own 91.69% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on WAB shares. Morgan Stanley reaffirmed an "overweight" rating and issued a $318.00 target price on shares of Wabtec in a research note on Monday, April 27th. Wells Fargo & Company increased their price target on shares of Wabtec from $270.00 to $284.00 and gave the company an "equal weight" rating in a research note on Thursday, April 23rd. JPMorgan Chase & Co. raised their price target on shares of Wabtec from $290.00 to $300.00 and gave the company a "neutral" rating in a report on Monday, July 13th. Citigroup dropped their price objective on shares of Wabtec from $313.00 to $311.00 and set a "buy" rating for the company in a research report on Monday, July 13th. Finally, Susquehanna reaffirmed a "positive" rating and set a $305.00 price objective on shares of Wabtec in a report on Thursday, April 23rd. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, Wabtec has an average rating of "Moderate Buy" and an average target price of $293.36.

Wabtec Stock Performance

Shares of NYSE:WAB opened at $261.85 on Monday. The company has a current ratio of 1.02, a quick ratio of 0.54 and a debt-to-equity ratio of 0.42. Wabtec has a 1-year low of $184.26 and a 1-year high of $284.91. The stock has a market capitalization of $44.43 billion, a P/E ratio of 37.04, a P/E/G ratio of 1.87 and a beta of 0.94. The business has a 50-day moving average price of $264.30 and a two-hundred day moving average price of $253.08.

Wabtec (NYSE:WAB - Get Free Report) last issued its earnings results on Wednesday, April 22nd. The transportation company reported $2.71 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.62 by $0.09. Wabtec had a net margin of 10.52% and a return on equity of 14.52%. The company had revenue of $2.95 billion for the quarter, compared to analyst estimates of $3.08 billion. During the same quarter last year, the firm earned $2.28 EPS. The company'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 analysts predict that Wabtec will post 10.64 earnings per share for the current year.

Wabtec Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Tuesday, August 18th will be paid a $0.31 dividend. The ex-dividend date of this dividend is Tuesday, August 18th. This represents a $1.24 dividend on an annualized basis and a yield of 0.5%. Wabtec's dividend payout ratio (DPR) is presently 17.54%.

Insider Buying and Selling

In other news, insider Sameer Gaur sold 1,082 shares of the stock in a transaction on Friday, June 12th. The stock was sold at an average price of $263.50, for a total value of $285,107.00. Following the transaction, the insider owned 11,985 shares of the company's stock, valued at $3,158,047.50. This represents a 8.28% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Rafael Santana sold 1,163 shares of the firm's stock in a transaction on Monday, June 8th. The stock was sold at an average price of $261.06, for a total value of $303,612.78. Following the completion of the transaction, the chief executive officer owned 124,077 shares in the company, valued at $32,391,541.62. This represents a 0.93% decrease in their ownership of the stock. 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. Over the last ninety days, insiders sold 5,734 shares of company stock worth $1,504,571. Insiders own 0.57% of the company's stock.

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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