Wabtec $WAB Shares Bought by AlphaQuest LLC

Key Points

• AlphaQuest LLC increased its Wabtec stake by 212.4% in the fourth quarter, ending with 7,525 shares valued at about $1.6 million.
• Wabtec reported Q1 earnings of $2.71 per share, beating estimates, while revenue rose 13% year over year to $2.95 billion, though it came in below expectations.
• The company announced a quarterly dividend of $0.31 per share and a $1.2 billion share repurchase program, signaling confidence in its valuation and cash generation.

AlphaQuest LLC raised its position in Wabtec (NYSE:WAB - Free Report) by 212.4% in the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 7,525 shares of the transportation company's stock after acquiring an additional 5,116 shares during the quarter. AlphaQuest LLC's holdings in Wabtec were worth $1,606,000 at the end of the most recent quarter.

Several other large investors also recently bought and sold shares of the company. Varma Mutual Pension Insurance Co boosted its stake in shares of Wabtec by 9.1% during the 3rd quarter. Varma Mutual Pension Insurance Co now owns 47,924 shares of the transportation company's stock valued at $9,607,000 after buying an additional 4,000 shares during the last quarter. SG Americas Securities LLC boosted its stake in shares of Wabtec by 809.6% during the 4th quarter. SG Americas Securities LLC now owns 152,297 shares of the transportation company's stock valued at $32,508,000 after buying an additional 135,553 shares during the last quarter. Alberta Investment Management Corp purchased a new position in shares of Wabtec during the 3rd quarter valued at approximately $842,000. Nordea Investment Management AB boosted its stake in shares of Wabtec by 55.5% during the 4th quarter. Nordea Investment Management AB now owns 3,069,340 shares of the transportation company's stock valued at $659,939,000 after buying an additional 1,095,083 shares during the last quarter. Finally, 111 Capital purchased a new position in shares of Wabtec during the 3rd quarter valued at approximately $949,000. Institutional investors and hedge funds own 91.69% of the company's stock.

Wabtec Stock Performance

Shares of WAB opened at $261.12 on Thursday. The business's fifty day moving average price is $258.15 and its 200 day moving average price is $238.77. Wabtec has a 12-month low of $184.26 and a 12-month high of $275.84. The stock has a market capitalization of $44.31 billion, a PE ratio of 36.93, a price-to-earnings-growth ratio of 1.87 and a beta of 0.97. 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 quarterly earnings data on Wednesday, April 22nd. The transportation company reported $2.71 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $2.95 billion for the quarter, compared to analysts' expectations of $3.08 billion. During the same period last year, the business posted $2.28 earnings per share. The firm's revenue for the quarter was up 13.0% on a year-over-year basis. Wabtec has set its FY 2026 guidance at 10.250-10.650 EPS. Equities research analysts forecast that Wabtec will post 10.61 EPS for the current year.

Wabtec Announces Dividend

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

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

Analysts Set New Price Targets

Several equities analysts have recently commented on the company. Wall Street Zen cut Wabtec from a "buy" rating to a "hold" rating in a research note on Saturday, March 14th. Jefferies Financial Group reiterated a "buy" rating and set a $290.00 target price (down from $300.00) on shares of Wabtec in a research note on Tuesday, March 31st. Rothschild & Co Redburn upgraded 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. Weiss Ratings reiterated a "buy (b)" rating on shares of Wabtec in a research note on Monday, April 20th. Finally, Wells Fargo & Company raised their price objective on Wabtec from $270.00 to $284.00 and gave the stock an "equal weight" rating in a research note on Thursday, April 23rd. Ten equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $289.82.

Insiders Place Their Bets

In other Wabtec news, CEO Rafael Santana sold 1,163 shares of the firm's stock in a transaction on Monday, May 4th. The stock was sold at an average price of $263.77, for a total value of $306,764.51. Following the sale, the chief executive officer directly owned 127,566 shares in the company, valued at approximately $33,648,083.82. This trade represents a 0.90% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Gina Trombley sold 4,013 shares of the firm's stock in a transaction on Thursday, March 12th. The shares were 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 $3,347,722.67. The trade was a 22.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 67,191 shares of company stock worth $17,922,608 over the last quarter. 0.57% of the stock is currently owned by company 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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