Wabtec (NYSE:WAB) Sets New 12-Month High - Time to Buy?

Key Points

• Wabtec reached a new 52-week high of $307.96, with shares last trading at $305.14.
• Analysts have a consensus “Moderate Buy” rating and an average price target of $320.18; 10 rate the stock Buy and two Hold.
• Quarterly earnings beat expectations at $2.83 per share versus $2.73 forecast, while revenue of $3.12 billion fell short of estimates. Wabtec also announced a $0.31 quarterly dividend.

Wabtec (NYSE:WAB - Get Free Report) reached a new 52-week high on Wednesday. The stock traded as high as $307.96 and last traded at $305.1350, with a volume of 64,703 shares. The stock had previously closed at $303.49.

Wall Street Analyst Weigh In

Several equities analysts recently commented on WAB shares. JPMorgan Chase & Co. increased their price objective on shares of Wabtec from $315.00 to $320.00 and gave the company a "neutral" rating in a research note on Monday, September 21st. Susquehanna upped their target price on Wabtec from $305.00 to $340.00 and gave the stock a "positive" rating in a report on Thursday, July 23rd. Wells Fargo & Company increased their target price on Wabtec from $284.00 to $315.00 and gave the company an "equal weight" rating in a research report on Thursday, July 23rd. Morgan Stanley lifted their price target on Wabtec from $318.00 to $355.00 and gave the company an "overweight" rating in a research note on Thursday, July 23rd. Finally, Rothschild & Co Redburn cut their price target on Wabtec from $293.00 to $292.00 and set a "buy" rating on the stock in a research note on Wednesday, July 29th. Ten analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $320.18.

Wabtec Stock Performance

The company has a 50 day moving average of $284.95 and a two-hundred day moving average of $269.82. The company has a debt-to-equity ratio of 0.41, a current ratio of 1.10 and a quick ratio of 0.56. The company has a market capitalization of $51.10 billion, a PE ratio of 37.78, a PEG ratio of 1.67 and a beta of 0.93.

Wabtec (NYSE:WAB - Get Free Report) last issued its earnings results on Wednesday, October 21st. The transportation company reported $2.83 earnings per share for the quarter, topping analysts' consensus estimates of $2.73 by $0.10. The business had revenue of $3.12 billion during the quarter, compared to analyst estimates of $3.20 billion. Wabtec had a return on equity of 15.72% and a net margin of 11.20%. Wabtec's revenue was up 8.1% on a year-over-year basis. During the same quarter in the previous year, the firm earned $2.32 EPS. As a group, equities research analysts predict that Wabtec will post 10.97 earnings per share for the current year.

Wabtec Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Stockholders of record on Tuesday, November 17th will be paid a $0.31 dividend. This represents a $1.24 annualized dividend and a dividend yield of 0.4%. The ex-dividend date of this dividend is Tuesday, November 17th. Wabtec's dividend payout ratio (DPR) is presently 15.40%.

Insider Activity

In other news, EVP Gregory Sbrocco sold 952 shares of the company's stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $300.00, for a total value of $285,600.00. Following the transaction, the executive vice president directly owned 21,043 shares in the company, valued at approximately $6,312,900. This represents a 4.33% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michael Fetsko sold 3,250 shares of the business's stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $293.22, for a total value of $952,965.00. Following the completion of the sale, the insider owned 37,380 shares of the company's stock, valued at $10,960,563.60. The trade was a 8.00% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 5,289 shares of company stock valued at $1,555,741. 0.57% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in WAB. Latitude Advisors LLC bought a new position in Wabtec during the third quarter worth $26,000. Meeder Asset Management Inc. acquired a new stake in shares of Wabtec in the second quarter worth $26,000. Bell Investment Advisors Inc acquired a new stake in shares of Wabtec in the second quarter worth $29,000. Fiduciary Financial Advisors acquired a new stake in shares of Wabtec in the second quarter worth $29,000. Finally, Eastern Bank grew its holdings in shares of Wabtec by 103.8% during the third quarter. Eastern Bank now owns 163 shares of the transportation company's stock valued at $47,000 after buying an additional 83 shares in the last quarter. Hedge funds and other institutional investors own 91.69% of the company's stock.

About Wabtec

Wabtec Corporation NYSE: WAB, also known as Westinghouse Air Brake Technologies, supplies equipment, systems and services for the freight rail and passenger transit industries. Its products include locomotives, braking and train control systems, propulsion equipment, and components designed to support rail safety and performance. The company also provides aftermarket services, including maintenance, modernization, parts and digital solutions for rail operators. Its offerings serve freight railroads, transit agencies and other customers in the global rail industry.

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