Hsbc Holdings PLC Reduces Position in Wabtec $WAB

Key Points

• HSBC Holdings PLC cut its Wabtec stake by 3.4% in the fourth quarter, selling 10,692 shares and ending with 306,009 shares valued at about $65.5 million.
• Wabtec reported better-than-expected earnings of $2.71 per share, though revenue of $2.95 billion missed estimates; revenue still rose 13% year over year.
• The company also announced a quarterly dividend of $0.31 per share, while Wall Street remains broadly positive with a consensus rating of Moderate Buy and an average price target of $289.82.

Hsbc Holdings PLC decreased its holdings in shares of Wabtec (NYSE:WAB - Free Report) by 3.4% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 306,009 shares of the transportation company's stock after selling 10,692 shares during the period. Hsbc Holdings PLC owned about 0.18% of Wabtec worth $65,452,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors also recently bought and sold shares of the stock. Norges Bank purchased a new stake in Wabtec in the fourth quarter worth about $409,039,000. Price T Rowe Associates Inc. MD lifted its position in shares of Wabtec by 20.3% during the 4th 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 buying an additional 1,344,744 shares in the last quarter. Nordea Investment Management AB grew its stake in shares of Wabtec by 55.5% during the 4th quarter. Nordea Investment Management AB now owns 3,069,340 shares of the transportation company's stock valued at $659,939,000 after acquiring an additional 1,095,083 shares during the period. Farallon Capital Management LLC grew its stake in shares of Wabtec by 68.6% during the 3rd quarter. Farallon Capital Management LLC now owns 2,205,098 shares of the transportation company's stock valued at $442,056,000 after acquiring an additional 896,900 shares during the period. Finally, Bank of Montreal Can increased its holdings in Wabtec by 360.0% in the 4th quarter. Bank of Montreal Can now owns 885,197 shares of the transportation company's stock worth $188,945,000 after acquiring an additional 692,773 shares in the last quarter. 91.69% of the stock is owned by institutional investors.

Wabtec Trading Up 0.1%

Shares of Wabtec stock opened at $262.38 on Monday. Wabtec has a twelve month low of $184.26 and a twelve month high of $284.91. The company has a quick ratio of 0.54, a current ratio of 1.02 and a debt-to-equity ratio of 0.42. The business has a 50-day moving average price of $265.43 and a 200-day moving average price of $250.00. The firm has a market cap of $44.52 billion, a price-to-earnings ratio of 37.11, a PEG ratio of 1.88 and a beta of 0.94.

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 analysts' consensus estimates of $2.62 by $0.09. The company had revenue of $2.95 billion during the quarter, compared to analyst estimates of $3.08 billion. Wabtec had a return on equity of 14.52% and a net margin of 10.52%.The firm's revenue was up 13.0% on a year-over-year basis. During the same period in the prior year, the company earned $2.28 earnings per share. Wabtec has set its FY 2026 guidance at 10.250-10.650 EPS. Equities research analysts anticipate that Wabtec will post 10.61 EPS for the current fiscal year.

Wabtec Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, June 3rd. Investors of record on Friday, May 22nd were issued a $0.31 dividend. The ex-dividend date of this dividend was Friday, May 22nd. This represents a $1.24 dividend on an annualized basis and a dividend yield of 0.5%. Wabtec's dividend payout ratio (DPR) is 17.54%.

Insiders Place Their Bets

In other news, CEO Rafael Santana sold 60,852 shares of the business's stock in a transaction dated Tuesday, April 14th. The shares were sold at an average price of $268.89, for a total value of $16,362,494.28. Following the sale, the chief executive officer directly owned 128,729 shares in the company, valued at $34,613,940.81. The trade was a 32.10% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Sameer Gaur sold 1,082 shares of the firm's stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $263.50, for a total value of $285,107.00. Following the completion of the sale, the insider directly owned 11,985 shares of the company's stock, valued at $3,158,047.50. The trade was a 8.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 65,423 shares of company stock valued at $17,562,278. 0.57% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on WAB. Morgan Stanley reaffirmed an "overweight" rating and set a $318.00 price target on shares of Wabtec in a report on Monday, April 27th. Jefferies Financial Group reissued a "buy" rating and issued a $290.00 price objective (down from $300.00) on shares of Wabtec in a research note on Tuesday, March 31st. JPMorgan Chase & Co. decreased their price objective on shares of Wabtec from $290.00 to $280.00 and set a "neutral" rating on the stock in a research report on Friday, April 10th. Wolfe Research restated an "outperform" rating and set a $303.00 target price on shares of Wabtec in a research note on Thursday, April 23rd. Finally, Wells Fargo & Company upped their target price on shares of Wabtec from $270.00 to $284.00 and gave the stock an "equal weight" rating in a report on Thursday, April 23rd. Ten research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $289.82.

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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