Pinnbrook Capital Management LP Buys Shares of 36,275 Wabtec $WAB

Key Points

• Pinnbrook Capital Management initiated a new stake in Wabtec, buying 36,275 shares worth about $7.74 million in the fourth quarter. Wabtec now represents 1.1% of Pinnbrook’s holdings and ranks as its 28th-largest position.
• Analyst sentiment is generally positive, with multiple firms raising targets or upgrading the stock. Wabtec currently has a consensus “Moderate Buy” rating and an average price target of $289.82.
• Wabtec recently beat earnings expectations, reporting $2.71 EPS versus the $2.62 estimate, while revenue rose 13% year over year. The company also announced a quarterly dividend of $0.31 per share and a $1.2 billion share buyback program.

Pinnbrook Capital Management LP bought a new stake in Wabtec (NYSE:WAB - Free Report) during the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The firm bought 36,275 shares of the transportation company's stock, valued at approximately $7,743,000. Wabtec comprises 1.1% of Pinnbrook Capital Management LP's holdings, making the stock its 28th biggest holding.

A number of other hedge funds also recently added to or reduced their stakes in WAB. BOKF NA lifted its stake in Wabtec by 66.7% in the fourth 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 last quarter. FNY Investment Advisers LLC bought a new stake in Wabtec in the fourth quarter valued at $42,000. Root Financial Partners LLC bought a new stake in Wabtec in the third quarter valued at $44,000. Westfuller Advisors LLC lifted its stake in Wabtec by 83.2% in the fourth 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 last quarter. Finally, Steigerwald Gordon & Koch Inc. lifted its stake in Wabtec by 258.3% in the fourth 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 last quarter. 91.69% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

WAB has been the topic of a number of recent research reports. Rothschild & Co Redburn upgraded Wabtec from a "neutral" rating to a "buy" rating and raised their target price for the company from $262.00 to $285.00 in a research note on Thursday, March 26th. Wall Street Zen cut Wabtec from a "buy" rating to a "hold" rating in a research note on Saturday, March 14th. Wells Fargo & Company raised their target price on Wabtec from $270.00 to $284.00 and gave the company an "equal weight" rating in a research note on Thursday, April 23rd. Wolfe Research reiterated an "outperform" rating and issued a $303.00 target price on shares of Wabtec in a research note on Thursday, April 23rd. Finally, Morgan Stanley restated an "overweight" rating and set a $318.00 price objective on shares of Wabtec in a research note on Monday, April 27th. Ten equities 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 company presently has a consensus rating of "Moderate Buy" and a consensus price target of $289.82.

Wabtec Price Performance

Shares of NYSE WAB opened at $255.07 on Friday. Wabtec has a fifty-two week low of $184.26 and a fifty-two week high of $275.84. The firm's 50-day simple moving average is $256.65 and its 200 day simple moving average is $237.23. 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 stock has a market cap of $43.28 billion, a P/E ratio of 36.08, a P/E/G ratio of 1.85 and a beta of 0.97.

Wabtec (NYSE:WAB - Get Free Report) last issued its quarterly earnings data 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 business had revenue of $2.95 billion for the quarter, compared to analysts' expectations of $3.08 billion. During the same period in the previous year, the business earned $2.28 earnings per share. The company'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. Equities analysts expect that Wabtec will post 10.61 EPS for the current year.

Wabtec Dividend Announcement

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

Wabtec declared that its Board of Directors has initiated 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 buy up to 2.9% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling at Wabtec

In related news, CEO Rafael Santana sold 1,163 shares of Wabtec stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $263.77, for a total transaction of $306,764.51. Following the transaction, 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. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, 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 1,150 shares of Wabtec stock in a transaction dated Thursday, February 26th. The stock was sold at an average price of $262.62, for a total value of $302,013.00. Following the transaction, the insider directly owned 12,017 shares in the company, valued at approximately $3,155,904.54. The trade was a 8.73% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 87,277 shares of company stock valued at $23,216,740. 0.57% of the stock is currently owned by insiders.

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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