Sumitomo Mitsui Trust Group Inc. Trims Stake in Wabtec $WAB

Key Points

• Sumitomo Mitsui Trust Group trimmed its stake in Wabtec by 9.1% in Q4, selling 39,694 shares and leaving it with 397,114 shares worth about $84.8 million (≈0.23% ownership).
• Wabtec beat Q results (EPS $2.10, revenue $2.97B), set FY2026 guidance of 10.05–10.45 EPS, raised its quarterly dividend to $0.31, and approved a $1.2 billion share buyback program (up to ~2.9% of shares).
• Analyst views are mixed but skew positive with a consensus of "Moderate Buy" and an average price target of $275.75, while insiders have sold roughly 31,512 shares (~$8.16M) over the past 90 days.

Sumitomo Mitsui Trust Group Inc. cut its holdings in Wabtec (NYSE:WAB - Free Report) by 9.1% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 397,114 shares of the transportation company's stock after selling 39,694 shares during the period. Sumitomo Mitsui Trust Group Inc. owned 0.23% of Wabtec worth $84,764,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also modified their holdings of the business. Piscataqua Savings Bank increased its stake in shares of Wabtec by 12,800.0% in the 3rd quarter. Piscataqua Savings Bank now owns 129 shares of the transportation company's stock worth $26,000 after purchasing an additional 128 shares in the last quarter. Motco raised its holdings in Wabtec by 6,600.0% in the 3rd quarter. Motco now owns 134 shares of the transportation company's stock worth $27,000 after purchasing an additional 132 shares during the period. Salomon & Ludwin LLC lifted 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 purchasing an additional 126 shares in the last quarter. North Capital Inc. lifted 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 purchasing an additional 189 shares in the last quarter. Finally, FNY Investment Advisers LLC bought a new stake in Wabtec during the fourth quarter valued at about $42,000. Hedge funds and other institutional investors own 91.69% of the company's stock.

Analyst Ratings Changes

Several research analysts have recently commented on WAB shares. Wolfe Research raised Wabtec from a "peer perform" rating to an "outperform" rating and set a $245.00 price objective on the stock in a research note on Thursday, January 8th. JPMorgan Chase & Co. cut their price objective on Wabtec from $290.00 to $280.00 and set a "neutral" rating for the company in a research note on Friday, April 10th. Weiss Ratings reissued a "buy (b)" rating on shares of Wabtec in a report on Wednesday, January 21st. Wall Street Zen cut shares of Wabtec from a "buy" rating to a "hold" rating in a research note on Saturday, March 14th. Finally, Morgan Stanley reaffirmed an "overweight" rating and set a $315.00 price target on shares of Wabtec in a report on Tuesday, February 17th. Ten equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $275.75.

Wabtec Price Performance

NYSE:WAB opened at $268.37 on Wednesday. The business's 50-day simple moving average is $252.36 and its two-hundred day simple moving average is $225.64. Wabtec has a 52 week low of $165.17 and a 52 week high of $275.84. The stock has a market cap of $45.67 billion, a PE ratio of 39.29, a P/E/G ratio of 2.03 and a beta of 0.99. The company has a quick ratio of 0.57, a current ratio of 1.11 and a debt-to-equity ratio of 0.38.

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

Wabtec Increases Dividend

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

Wabtec declared that its board has approved a stock repurchase plan on Wednesday, February 11th that authorizes the company to buyback $1.20 billion in shares. This buyback authorization authorizes the transportation company to reacquire up to 2.9% of its shares through open market purchases. Shares buyback plans are generally a sign that the company's leadership believes its shares are undervalued.

Insider Buying and Selling at Wabtec

In other news, CEO Rafael Santana sold 1,163 shares of Wabtec stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $243.10, for a total transaction of $282,725.30. Following the sale, the chief executive officer owned 190,744 shares in the company, valued at $46,369,866.40. This trade represents a 0.61% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Gina Trombley sold 4,013 shares of the business's stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $241.87, for a total transaction of $970,624.31. Following the completion of the transaction, the executive vice president directly owned 13,841 shares in the company, valued at $3,347,722.67. This trade represents a 22.48% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 31,512 shares of company stock worth $8,160,028. Insiders own 0.57% of the company's stock.

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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