Patton Fund Management Inc. Decreases Stake in Wabtec $WAB

Key Points

• Patton Fund Management cut its stake in Wabtec by 27.2% in Q4, selling 4,492 shares and leaving it with 11,993 shares worth about $2.56 million.
• Wabtec reported Q results that beat estimates (EPS $2.10 vs. $2.08; revenue $2.97B, up 14.8%), set FY2026 guidance of 10.050–10.450 EPS, raised its dividend to $0.31 quarterly, and authorized a $1.2 billion buyback (~2.9% of shares).
• Institutional investors own 91.69% of the stock, analysts have a consensus rating of "Moderate Buy" with an average target of $275.75, while insiders have sold 31,512 shares (~$8.16M) over the past 90 days.

Patton Fund Management Inc. lowered its holdings in Wabtec (NYSE:WAB - Free Report) by 27.2% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 11,993 shares of the transportation company's stock after selling 4,492 shares during the quarter. Patton Fund Management Inc.'s holdings in Wabtec were worth $2,560,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds have also recently modified their holdings of the company. Piscataqua Savings Bank raised its stake in shares of Wabtec by 12,800.0% in the third quarter. Piscataqua Savings Bank now owns 129 shares of the transportation company's stock worth $26,000 after purchasing an additional 128 shares during the last quarter. Motco increased its position in Wabtec by 6,600.0% during the third quarter. Motco now owns 134 shares of the transportation company's stock valued at $27,000 after acquiring an additional 132 shares during the last quarter. Salomon & Ludwin LLC increased its position in Wabtec by 370.6% during the third quarter. Salomon & Ludwin LLC now owns 160 shares of the transportation company's stock valued at $32,000 after acquiring an additional 126 shares during the last quarter. North Capital Inc. increased its position in Wabtec by 18,900.0% during the third quarter. North Capital Inc. now owns 190 shares of the transportation company's stock valued at $38,000 after acquiring an additional 189 shares during the last quarter. Finally, FNY Investment Advisers LLC purchased a new stake in Wabtec during the fourth quarter valued at $42,000. Hedge funds and other institutional investors own 91.69% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on WAB shares. Jefferies Financial Group reiterated a "buy" rating and set a $290.00 price objective (down from $300.00) on shares of Wabtec in a research report on Tuesday, March 31st. Stephens upped their price objective on Wabtec from $230.00 to $290.00 and gave the company an "overweight" rating in a research report on Thursday, February 12th. Rothschild & Co Redburn upgraded Wabtec from a "neutral" rating to a "buy" rating and upped their price objective for the company from $262.00 to $285.00 in a research report on Thursday, March 26th. JPMorgan Chase & Co. reduced their price objective on Wabtec from $290.00 to $280.00 and set a "neutral" rating for the company in a research report on Friday. Finally, KeyCorp upped their price objective on Wabtec from $240.00 to $308.00 and gave the company an "overweight" rating in a research report on Thursday, February 12th. Ten research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $275.75.

Wabtec Stock Performance

NYSE:WAB opened at $268.96 on Tuesday. The stock has a 50-day simple moving average of $251.72 and a two-hundred day simple moving average of $225.13. Wabtec has a 52-week low of $165.17 and a 52-week high of $275.84. The company has a debt-to-equity ratio of 0.38, a quick ratio of 0.57 and a current ratio of 1.11. The firm has a market capitalization of $45.77 billion, a PE ratio of 39.38, a P/E/G ratio of 2.02 and a beta of 0.99.

Wabtec (NYSE:WAB - Get Free Report) last released its quarterly earnings results on Wednesday, February 11th. The transportation company reported $2.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.08 by $0.02. Wabtec had a return on equity of 14.12% and a net margin of 10.48%.The business had revenue of $2.97 billion during the quarter, compared to analyst estimates of $2.86 billion. During the same quarter in the previous year, the company posted $1.68 earnings per share. Wabtec's revenue for the quarter was up 14.8% on a year-over-year basis. Wabtec has set its FY 2026 guidance at 10.050-10.450 EPS. Analysts forecast that Wabtec will post 8.54 EPS for the current year.

Wabtec Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, March 2nd. Stockholders of record on Tuesday, February 17th were paid a $0.31 dividend. This represents a $1.24 dividend on an annualized basis and a dividend yield of 0.5%. This is a positive change from Wabtec's previous quarterly dividend of $0.25. The ex-dividend date of this dividend was Tuesday, February 17th. Wabtec's dividend payout ratio is currently 18.16%.

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

Insider Transactions at Wabtec

In other news, insider Rogerio Mendonca sold 3,500 shares of the company's stock in a transaction dated Friday, February 20th. The stock was sold at an average price of $264.21, for a total value of $924,735.00. Following the completion of the transaction, the insider owned 10,101 shares of the company's stock, valued at $2,668,785.21. This represents a 25.73% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Nalin Jain sold 7,936 shares of the company's stock in a transaction dated Wednesday, February 25th. The stock was sold at an average price of $264.09, for a total value of $2,095,818.24. Following the completion of 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 position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 31,512 shares of company stock valued at $8,160,028. 0.57% of the stock is owned by corporate insiders.

Wabtec 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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