Nomura Asset Management Co. Ltd. Raises Position in Wabtec $WAB

Key Points

• Nomura Asset Management increased its Wabtec stake by 5.3% in the fourth quarter, holding 85,485 shares worth about $18.2 million at quarter-end.
• Wabtec reported better-than-expected earnings of $2.71 per share for the latest quarter, though revenue of $2.95 billion came in below analyst estimates. The company also reiterated FY 2026 EPS guidance of $10.25 to $10.65.
• The company authorized a $1.2 billion share buyback and declared a quarterly dividend of $0.31 per share, while analysts remain broadly positive with a consensus rating of Moderate Buy and a target price of $289.82.

Nomura Asset Management Co. Ltd. grew its holdings in shares of Wabtec (NYSE:WAB - Free Report) by 5.3% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 85,485 shares of the transportation company's stock after purchasing an additional 4,266 shares during the period. Nomura Asset Management Co. Ltd. owned approximately 0.05% of Wabtec worth $18,247,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in WAB. Norges Bank purchased a new position in Wabtec in the 4th quarter worth $409,039,000. Nordea Investment Management AB grew its position 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 position 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. UBS Group AG grew its position in shares of Wabtec by 194.2% during the 3rd quarter. UBS Group AG now owns 1,033,304 shares of the transportation company's stock valued at $207,146,000 after acquiring an additional 682,048 shares during the period. Finally, AQR Capital Management LLC boosted its holdings in Wabtec by 76.3% in the 3rd quarter. AQR Capital Management LLC now owns 1,229,270 shares of the transportation company's stock worth $245,534,000 after buying an additional 532,121 shares during the last quarter. Hedge funds and other institutional investors own 91.69% of the company's stock.

Insider Transactions at Wabtec

In other news, EVP Gina Trombley sold 4,013 shares of the company's stock in a transaction dated Thursday, March 12th. The shares were sold at an average price of $241.87, for a total value of $970,624.31. Following the completion of the sale, the executive vice president directly owned 13,841 shares of the company's stock, valued at approximately $3,347,722.67. This represents a 22.48% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Rafael Santana sold 1,163 shares of the company's 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 completion of the sale, the chief executive officer directly owned 127,566 shares of the company's stock, valued at $33,648,083.82. The trade was a 0.90% 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. Insiders sold 67,191 shares of company stock valued at $17,922,608 over the last ninety days. Corporate insiders own 0.57% of the company's stock.

Wabtec Price Performance

Shares of WAB opened at $256.23 on Tuesday. Wabtec has a 1-year low of $184.26 and a 1-year high of $275.84. The stock has a market cap of $43.48 billion, a PE ratio of 36.24, a price-to-earnings-growth ratio of 1.87 and a beta of 0.94. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.02 and a quick ratio of 0.54. The firm has a fifty day moving average price of $259.47 and a 200 day moving average price of $239.86.

Wabtec (NYSE:WAB - Get Free Report) last announced its quarterly earnings results on Wednesday, April 22nd. The transportation company reported $2.71 earnings per share for the quarter, beating analysts' consensus estimates of $2.62 by $0.09. Wabtec had a net margin of 10.52% and a return on equity of 14.52%. The firm had revenue of $2.95 billion during the quarter, compared to analysts' expectations of $3.08 billion. During the same period in the previous year, the company earned $2.28 earnings per share. Wabtec's quarterly revenue was up 13.0% compared to the same quarter last year. Wabtec has set its FY 2026 guidance at 10.250-10.650 EPS. As a group, sell-side analysts anticipate that Wabtec will post 10.61 EPS for the current year.

Wabtec announced that its Board of Directors has approved a share repurchase plan on Wednesday, February 11th that allows the company to repurchase $1.20 billion in shares. This repurchase authorization allows the transportation company to repurchase up to 2.9% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's board believes its shares are undervalued.

Wabtec Announces Dividend

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

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on WAB. Morgan Stanley restated an "overweight" rating and set a $318.00 target price on shares of Wabtec in a report on Monday, April 27th. JPMorgan Chase & Co. reduced their price target 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. KeyCorp lifted their target price on shares of Wabtec from $240.00 to $308.00 and gave the company an "overweight" rating in a report on Thursday, February 12th. Wall Street Zen downgraded shares of Wabtec from a "buy" rating to a "hold" rating in a report on Saturday, March 14th. Finally, Wells Fargo & Company lifted their target price on shares of Wabtec from $270.00 to $284.00 and gave the company 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, Wabtec presently has a consensus rating of "Moderate Buy" and a consensus 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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