Wabtec (NYSE:WAB) Stock Breaks Above Fifty Day Moving Average - Here's What Happened

Key Points

• Wabtec shares rose above their 50-day moving average, reaching $289.13 and last trading near $286.91, compared with a 50-day average of $285.36.
• Analysts maintain a favorable outlook, with a consensus “Moderate Buy” rating and an average price target of $320.18; several firms recently raised their targets to $340.
• Wabtec’s latest quarterly results exceeded earnings expectations, posting $2.83 in EPS versus $2.73 estimated, while revenue increased 8.1% year over year. The company also declared a quarterly dividend of $0.31 per share.

Shares of Wabtec (NYSE:WAB - Get Free Report) crossed above its 50-day moving average during trading on Monday. The stock has a 50-day moving average of $285.36 and traded as high as $289.13. Wabtec shares last traded at $286.9080, with a volume of 778,404 shares traded.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the company. KeyCorp lifted their price target on Wabtec from $308.00 to $340.00 and gave the company an "overweight" rating in a research report on Thursday, July 23rd. Citigroup reduced their price target on Wabtec from $338.00 to $334.00 and set a "buy" rating on the stock in a research note on Thursday, October 22nd. Susquehanna increased their price objective on Wabtec from $305.00 to $340.00 and gave the stock a "positive" rating in a report on Thursday, July 23rd. Rothschild & Co Redburn lowered their price objective on Wabtec from $293.00 to $292.00 and set a "buy" rating for the company in a research report on Wednesday, July 29th. Finally, JPMorgan Chase & Co. boosted their target price on shares of Wabtec from $315.00 to $320.00 and gave the company a "neutral" rating in a report on Monday, September 21st. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $320.18.

Wabtec Price Performance

The firm has a fifty day moving average of $285.36 and a 200 day moving average of $267.96. The company has a current ratio of 1.10, a quick ratio of 0.56 and a debt-to-equity ratio of 0.41. The company has a market capitalization of $48.14 billion, a P/E ratio of 35.64, a P/E/G ratio of 1.58 and a beta of 0.92.

Wabtec (NYSE:WAB - Get Free Report) last announced its earnings results on Wednesday, October 21st. The transportation company reported $2.83 earnings per share for the quarter, beating 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 net margin of 11.20% and a return on equity of 15.72%. The company's quarterly revenue was up 8.1% compared to the same quarter last year. During the same period in the previous year, the business earned $2.32 EPS. On average, equities research analysts anticipate that Wabtec will post 10.97 EPS for the current year.

Wabtec Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Tuesday, November 17th will be given a dividend of $0.31 per share. The ex-dividend date is Tuesday, November 17th. This represents a $1.24 annualized dividend and a yield of 0.4%. Wabtec's payout ratio is 15.40%.

Insider Activity at Wabtec

In other news, CEO Rafael Santana sold 1,087 shares of Wabtec stock in a transaction that occurred on Monday, October 5th. The shares were sold at an average price of $291.79, for a total transaction of $317,175.73. Following the sale, the chief executive officer owned 116,155 shares in the company, valued at $33,892,867.45. This trade represents a 0.93% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Gregory Sbrocco sold 952 shares of the business's stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $300.00, for a total value of $285,600.00. Following the completion of the sale, the executive vice president owned 21,043 shares in the company, valued at $6,312,900. This represents a 4.33% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 5,289 shares of company stock worth $1,555,741. 0.57% of the stock is owned by company insiders.

Institutional Trading of Wabtec

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Whipplewood Advisors LLC bought a new position in shares of Wabtec during the first quarter valued at approximately $25,000. Meeder Asset Management Inc. purchased a new stake in shares of Wabtec in the second quarter worth approximately $26,000. Latitude Advisors LLC bought a new stake in shares of Wabtec during the 3rd quarter worth approximately $26,000. Bell Investment Advisors Inc bought a new stake in shares of Wabtec during the 2nd quarter worth approximately $29,000. Finally, Fiduciary Financial Advisors bought a new stake in shares of Wabtec during the 2nd quarter worth approximately $29,000. Hedge funds and other institutional investors own 91.69% of the company's stock.

About Wabtec

Westinghouse Air Brake Technologies Corporation, doing business as Wabtec NYSE: WAB, is a global provider of equipment, systems, digital solutions and services for the freight and passenger rail industries. The company develops technologies intended to improve the safety, efficiency, reliability and sustainability of rail transportation.

Wabtec's products and services include locomotives, locomotive components and modernization programs, braking systems, train control and signaling equipment, power and propulsion systems, and advanced digital solutions.

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