Northwestern Mutual Wealth Management Co. Grows Position in Wabtec $WAB

Key Points

• Northwestern Mutual Wealth Management Co. sharply increased its Wabtec stake in the fourth quarter, adding 322,607 shares to reach 323,936 shares valued at about $69.1 million.
• Wabtec reported better-than-expected quarterly earnings of $2.71 per share, though revenue of $2.95 billion missed estimates; the company also guided FY 2026 EPS to $10.25-$10.65.
• The company announced a quarterly dividend of $0.31 per share and has an active $1.2 billion share buyback program, while analysts remain broadly positive with a consensus rating of Moderate Buy.

Northwestern Mutual Wealth Management Co. increased its position in shares of Wabtec (NYSE:WAB - Free Report) by 24,274.4% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 323,936 shares of the transportation company's stock after purchasing an additional 322,607 shares during the period. Northwestern Mutual Wealth Management Co. owned approximately 0.19% of Wabtec worth $69,144,000 at the end of the most recent quarter.

Several other large investors also recently added to or reduced their stakes in WAB. BOKF NA boosted its position in Wabtec by 66.7% in the 4th quarter. BOKF NA now owns 175 shares of the transportation company's stock valued at $37,000 after buying an additional 70 shares during the period. FNY Investment Advisers LLC purchased a new stake in Wabtec in the 4th quarter valued at about $42,000. Root Financial Partners LLC purchased a new stake in Wabtec in the 3rd quarter valued at about $44,000. Westfuller Advisors LLC boosted its position in Wabtec by 83.2% in the 4th quarter. Westfuller Advisors LLC now owns 207 shares of the transportation company's stock valued at $44,000 after buying an additional 94 shares during the period. Finally, Steigerwald Gordon & Koch Inc. boosted its position in Wabtec by 258.3% in the 4th quarter. Steigerwald Gordon & Koch Inc. now owns 215 shares of the transportation company's stock valued at $46,000 after buying an additional 155 shares during the period. 91.69% of the stock is owned by hedge funds and other institutional investors.

Wabtec Trading Up 0.1%

NYSE WAB opened at $264.29 on Monday. 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 firm has a market cap of $44.84 billion, a PE ratio of 37.38, a price-to-earnings-growth ratio of 1.89 and a beta of 0.97. The company has a 50 day moving average price of $255.84 and a 200 day moving average price of $235.67. Wabtec has a 52 week low of $184.26 and a 52 week high of $275.84.

Wabtec (NYSE:WAB - Get Free Report) last posted its quarterly earnings data on Wednesday, April 22nd. The transportation company reported $2.71 EPS for the quarter, topping 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 firm 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 posted $2.28 EPS. Wabtec's revenue was up 13.0% on a year-over-year basis. Wabtec has set its FY 2026 guidance at 10.250-10.650 EPS. As a group, sell-side analysts forecast that Wabtec will post 10.61 EPS for the current fiscal year.

Wabtec Dividend Announcement

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

Wabtec declared that its board has authorized a stock buyback program on Wednesday, February 11th that allows the company to repurchase $1.20 billion in outstanding shares. This repurchase authorization allows the transportation company to repurchase up to 2.9% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company's management believes its stock is undervalued.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on WAB. Stephens upped their price target on shares of Wabtec from $230.00 to $290.00 and gave the stock an "overweight" rating in a research report on Thursday, February 12th. Susquehanna reaffirmed a "positive" rating and issued a $305.00 price target on shares of Wabtec in a research report on Thursday, April 23rd. Rothschild & Co Redburn raised shares of Wabtec from a "neutral" rating to a "buy" rating and upped their price target for the stock from $262.00 to $285.00 in a research report on Thursday, March 26th. Jefferies Financial Group reaffirmed a "buy" rating and issued a $290.00 price target (down from $300.00) on shares of Wabtec in a research report on Tuesday, March 31st. Finally, Morgan Stanley reaffirmed an "overweight" rating and issued a $318.00 price target on shares of Wabtec in a research report on Monday, April 27th. Ten research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, Wabtec has an average rating of "Moderate Buy" and a consensus price target of $289.82.

Insider Transactions at Wabtec

In other news, insider Nalin Jain sold 7,936 shares of the firm's stock in a transaction dated Wednesday, February 25th. The shares were sold at an average price of $264.09, for a total value of $2,095,818.24. Following the transaction, the insider directly owned 6,364 shares of the company's stock, valued at approximately $1,680,668.76. This trade represents a 55.50% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CFO John A. Olin sold 11,000 shares of the firm's stock in a transaction dated Tuesday, February 24th. The stock was sold at an average price of $263.30, for a total transaction of $2,896,300.00. Following the completion of the transaction, the chief financial officer directly owned 60,487 shares in the company, valued at approximately $15,926,227.10. This represents a 15.39% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 91,729 shares of company stock valued at $24,387,500. 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.

Want to see what other hedge funds are holding WAB? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Wabtec (NYSE:WAB - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.