Wabtec $WAB Shares Bought by Korea Investment CORP

Key Points

• Korea Investment CORP raised its Wabtec stake by 45.8% to 197,862 shares (about $39.7M), part of heavy institutional ownership in the stock (91.69%) as several other funds also increased positions.
• Wabtec beat quarterly expectations with $2.10 EPS (vs. $2.08 est.) and $2.97B revenue (vs. $2.86B est.), with revenue up 14.8% year-over-year and FY2026 EPS guidance set at 10.050–10.450.
• The company announced a $1.20 billion share buyback program (about 2.9% of shares) and raised its quarterly dividend to $0.31 ($1.24 annualized, ~0.5% yield).

Korea Investment CORP raised its holdings in shares of Wabtec (NYSE:WAB - Free Report) by 45.8% in the third quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 197,862 shares of the transportation company's stock after buying an additional 62,182 shares during the quarter. Korea Investment CORP owned about 0.12% of Wabtec worth $39,665,000 as of its most recent SEC filing.

A number of other hedge funds have also modified their holdings of the business. First Trust Advisors LP boosted its position in Wabtec by 16.2% during the third quarter. First Trust Advisors LP now owns 149,799 shares of the transportation company's stock worth $30,030,000 after acquiring an additional 20,890 shares during the last quarter. Neuberger Berman Group LLC raised its holdings in Wabtec by 28.2% in the 3rd quarter. Neuberger Berman Group LLC now owns 293,775 shares of the transportation company's stock valued at $58,893,000 after acquiring an additional 64,542 shares during the last quarter. Burgundy Asset Management Ltd. lifted its stake in Wabtec by 12.1% in the 3rd quarter. Burgundy Asset Management Ltd. now owns 718,779 shares of the transportation company's stock worth $139,084,000 after purchasing an additional 77,495 shares in the last quarter. Dimensional Fund Advisors LP boosted its holdings in shares of Wabtec by 1.2% during the 3rd quarter. Dimensional Fund Advisors LP now owns 1,718,241 shares of the transportation company's stock worth $344,405,000 after purchasing an additional 19,952 shares during the last quarter. Finally, CI Investments Inc. boosted its holdings in shares of Wabtec by 6.1% during the 3rd quarter. CI Investments Inc. now owns 865 shares of the transportation company's stock worth $173,000 after purchasing an additional 50 shares during the last quarter. 91.69% of the stock is currently owned by institutional investors and hedge funds.

Wabtec Stock Up 0.9%

Shares of WAB opened at $246.81 on Tuesday. The stock has a market capitalization of $42.09 billion, a PE ratio of 36.14, a P/E/G ratio of 1.85 and a beta of 0.99. Wabtec has a 1 year low of $151.81 and a 1 year high of $266.27. 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 company's 50-day simple moving average is $240.17 and its 200-day simple moving average is $215.16.

Wabtec (NYSE:WAB - Get Free Report) last announced its quarterly earnings data on Wednesday, February 11th. The transportation company reported $2.10 earnings per share for the quarter, beating analysts' consensus estimates of $2.08 by $0.02. Wabtec had a net margin of 10.48% and a return on equity of 14.12%. The firm had revenue of $2.97 billion during the quarter, compared to analysts' expectations of $2.86 billion. During the same quarter in the previous year, the business posted $1.68 earnings per share. The business's quarterly revenue was up 14.8% compared to the same quarter last year. Wabtec has set its FY 2026 guidance at 10.050-10.450 EPS. Analysts forecast that Wabtec will post 8.54 earnings per share 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 dividend yield of 0.5%. This is a positive change from Wabtec's previous quarterly dividend of $0.25. The ex-dividend date was Tuesday, February 17th. Wabtec's payout ratio is presently 18.16%.

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

Analyst Ratings Changes

WAB has been the subject of several recent research reports. Wolfe Research raised Wabtec from a "peer perform" rating to an "outperform" rating and set a $245.00 price target for the company in a report on Thursday, January 8th. KeyCorp boosted their price objective on Wabtec from $240.00 to $308.00 and gave the stock an "overweight" rating in a research note on Thursday, February 12th. Morgan Stanley restated an "overweight" rating and issued a $315.00 target price on shares of Wabtec in a report on Tuesday, February 17th. Stephens raised their target price on Wabtec from $230.00 to $290.00 and gave the stock an "overweight" rating in a research note on Thursday, February 12th. Finally, Bank of America lifted their price target on Wabtec from $228.00 to $233.00 and gave the stock a "buy" rating in a report on Thursday, November 13th. Eight investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $269.00.

Insiders Place Their Bets

In related news, insider Michael Fetsko sold 5,058 shares of Wabtec stock in a transaction on Friday, December 12th. The stock was sold at an average price of $215.72, for a total value of $1,091,111.76. Following the completion of the transaction, the insider directly owned 36,882 shares in the company, valued at approximately $7,956,185.04. This trade represents a 12.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Rafael Santana sold 1,798 shares of the business's stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $245.71, for a total value of $441,786.58. Following the transaction, the chief executive officer directly owned 118,749 shares of the company's stock, valued at $29,177,816.79. The trade was a 1.49% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 33,192 shares of company stock valued at $8,379,272. Corporate insiders own 1.10% 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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