Norges Bank Invests $409.04 Million in Wabtec $WAB

Key Points

• Norges Bank initiated a large new stake in Wabtec, buying 1,916,324 shares valued at about $409.04 million and ending the quarter with roughly 1.12% ownership of the company.
• Wabtec reported quarterly EPS of $2.71, topping estimates, while revenue rose 13% year over year to $2.95 billion; the company also reaffirmed full-year outlook with FY 2026 EPS guidance of $10.25 to $10.65.
• The company is returning capital through a quarterly dividend of $0.31 per share and a $1.20 billion share repurchase program, while analysts remain broadly positive with a consensus rating of Moderate Buy and an average target price near $289.82.

Norges Bank bought a new position in Wabtec (NYSE:WAB - Free Report) during the 4th quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund bought 1,916,324 shares of the transportation company's stock, valued at approximately $409,039,000. Norges Bank owned about 1.12% of Wabtec at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in WAB. BOKF NA grew its position in Wabtec by 66.7% in the fourth quarter. BOKF NA now owns 175 shares of the transportation company's stock worth $37,000 after acquiring an additional 70 shares in the last quarter. FNY Investment Advisers LLC purchased a new position in Wabtec in the fourth quarter worth about $42,000. Westfuller Advisors LLC grew its position in Wabtec by 83.2% in the fourth quarter. Westfuller Advisors LLC now owns 207 shares of the transportation company's stock worth $44,000 after acquiring an additional 94 shares in the last quarter. Steigerwald Gordon & Koch Inc. grew its position in Wabtec by 258.3% in the fourth quarter. Steigerwald Gordon & Koch Inc. now owns 215 shares of the transportation company's stock worth $46,000 after acquiring an additional 155 shares in the last quarter. Finally, Salomon & Ludwin LLC grew its position in Wabtec by 35.6% in the fourth quarter. Salomon & Ludwin LLC now owns 217 shares of the transportation company's stock worth $47,000 after acquiring an additional 57 shares in the last quarter. Hedge funds and other institutional investors own 91.69% of the company's stock.

Wabtec Stock Down 1.9%

Shares of NYSE: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 business has a 50 day simple moving average of $259.47 and a two-hundred day simple moving average of $239.86. The firm has a market capitalization 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.

Wabtec (NYSE:WAB - Get Free Report) last announced 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 return on equity of 14.52% and a net margin of 10.52%.The business had revenue of $2.95 billion during the quarter, compared to analyst estimates of $3.08 billion. During the same quarter in the previous year, the business earned $2.28 earnings per share. The company's revenue for the quarter was up 13.0% compared to the same quarter last year. Wabtec has set its FY 2026 guidance at 10.250-10.650 EPS. On average, equities analysts predict that Wabtec will post 10.61 EPS for the current year.

Wabtec Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, June 3rd. Shareholders of record on Friday, May 22nd will be given a dividend of $0.31 per share. 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 17.54%.

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

Analysts Set New Price Targets

Several research analysts recently commented on the company. Wolfe Research reiterated an "outperform" rating and issued a $303.00 price target on shares of Wabtec in a research report on Thursday, April 23rd. Jefferies Financial Group reissued a "buy" rating and issued a $290.00 target price (down from $300.00) on shares of Wabtec in a research note on Tuesday, March 31st. JPMorgan Chase & Co. reduced their target price on shares of Wabtec from $290.00 to $280.00 and set a "neutral" rating on the stock in a research note on Friday, April 10th. Rothschild & Co Redburn raised shares of Wabtec from a "neutral" rating to a "buy" rating and increased their target price for the company from $262.00 to $285.00 in a research note on Thursday, March 26th. Finally, Stephens increased their target price on shares of Wabtec from $230.00 to $290.00 and gave the company an "overweight" rating in a research note on Thursday, February 12th. Ten equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $289.82.

Insider Activity at Wabtec

In related news, EVP Gina Trombley sold 4,013 shares of the business's stock in a transaction that occurred 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 completion of 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 ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Rafael Santana sold 60,852 shares of the business's stock in a transaction that occurred on 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 completion of the sale, the chief executive officer owned 128,729 shares of the company's stock, valued at $34,613,940.81. The trade was a 32.10% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 67,191 shares of company stock valued at $17,922,608 in the last 90 days. Company insiders own 0.57% of the company's stock.

Wabtec Company 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.

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