Hsbc Holdings PLC Cuts Stock Position in Wabtec $WAB

Key Points

• HSBC reduced its Wabtec stake by 3.8% in the second quarter, selling 13,238 shares and retaining 338,531 shares valued at approximately $91.3 million. Institutional investors collectively own 91.69% of Wabtec.
• Analysts remain broadly positive, with 10 Buy ratings and two Holds, producing a “Moderate Buy” consensus and an average price target of $313.36. Several firms recently raised their targets, including Morgan Stanley to $355.
• Wabtec exceeded quarterly expectations, reporting $2.76 in EPS and $3.18 billion in revenue, up 17.5% year over year. The company also reaffirmed fiscal 2026 EPS guidance of $10.60–$10.90 and pays a quarterly dividend of $0.31.

Hsbc Holdings PLC lessened its stake in shares of Wabtec (NYSE:WAB - Free Report) by 3.8% in the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 338,531 shares of the transportation company's stock after selling 13,238 shares during the period. Hsbc Holdings PLC owned approximately 0.20% of Wabtec worth $91,265,000 at the end of the most recent reporting period.

A number of other large investors have also added to or reduced their stakes in WAB. BlackRock Inc. purchased a new stake in shares of Wabtec in the second quarter worth $3,741,077,000. Price T Rowe Associates Inc. MD increased its holdings in shares of Wabtec by 20.3% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 7,965,503 shares of the transportation company's stock valued at $1,700,238,000 after acquiring an additional 1,344,744 shares in the last quarter. State Street Corp raised its position in shares of Wabtec by 2.6% in the 4th quarter. State Street Corp now owns 7,658,040 shares of the transportation company's stock worth $1,634,609,000 after purchasing an additional 197,610 shares during the last quarter. Geode Capital Management LLC raised its position in shares of Wabtec by 0.9% in the 4th 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 during the last quarter. Finally, Wellington Management Group LLP boosted its stake in Wabtec by 3.6% in the 3rd 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. Hedge funds and other institutional investors own 91.69% of the company's stock.

Insider Buying and Selling at Wabtec

In related news, EVP Gregory Sbrocco sold 952 shares of Wabtec stock in a transaction on Monday, August 17th. The stock was sold at an average price of $300.00, for a total value of $285,600.00. Following the completion of the sale, the executive vice president owned 21,043 shares of the company's stock, valued at $6,312,900. The trade was a 4.33% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Eric Gebhardt sold 7,100 shares of the company's stock in a transaction on Friday, July 24th. The shares were sold at an average price of $299.27, for a total value of $2,124,817.00. Following the sale, the chief technology officer owned 19,153 shares of the company's stock, valued at approximately $5,731,918.31. This trade represents a 27.04% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 18,710 shares of company stock worth $5,505,630. 0.57% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

WAB has been the topic of several recent analyst reports. Weiss Ratings reissued a "buy (b)" rating on shares of Wabtec in a research report on Friday, July 17th. KeyCorp lifted their target price on shares of Wabtec from $308.00 to $340.00 and gave the stock an "overweight" rating in a report on Thursday, July 23rd. JPMorgan Chase & Co. upped their target price on shares of Wabtec from $300.00 to $315.00 and gave the stock a "neutral" rating in a research note on Thursday, July 23rd. Susquehanna increased their price target on shares of Wabtec from $305.00 to $340.00 and gave the company a "positive" rating in a report on Thursday, July 23rd. Finally, Morgan Stanley raised their price target on shares of Wabtec from $318.00 to $355.00 and gave the company an "overweight" rating in a research report on Thursday, July 23rd. Ten investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat, Wabtec presently has an average rating of "Moderate Buy" and a consensus price target of $313.36.

Wabtec Price Performance

WAB opened at $282.25 on Monday. The company's 50-day simple moving average is $283.36 and its two-hundred day simple moving average is $267.96. The company has a debt-to-equity ratio of 0.44, a quick ratio of 0.59 and a current ratio of 1.12. The stock has a market capitalization of $47.67 billion, a P/E ratio of 37.94, a P/E/G ratio of 1.92 and a beta of 0.92. Wabtec has a 52-week low of $184.26 and a 52-week high of $306.64.

Wabtec (NYSE:WAB - Get Free Report) last announced its quarterly earnings results on Wednesday, July 22nd. The transportation company reported $2.76 EPS for the quarter, topping analysts' consensus estimates of $2.60 by $0.16. Wabtec had a net margin of 10.59% and a return on equity of 15.10%. The firm had revenue of $3.18 billion during the quarter, compared to analyst estimates of $3.07 billion. During the same period in the previous year, the business posted $2.27 earnings per share. The business's revenue for the quarter was up 17.5% on a year-over-year basis. Wabtec has set its FY 2026 guidance at 10.600-10.900 EPS. As a group, analysts predict that Wabtec will post 10.86 EPS for the current year.

Wabtec Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 1st. Shareholders of record on Tuesday, August 18th were given a $0.31 dividend. This represents a $1.24 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date of this dividend was Tuesday, August 18th. Wabtec's payout ratio is 16.67%.

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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