Stephens Upgrades Wabtec (NYSE:WAB) to "Strong-Buy"

Key Points

• Stephens upgraded Wabtec to “strong-buy,” adding to a generally positive analyst picture. MarketBeat says the stock now has an average rating of “Moderate Buy” with an average price target of $289.82.
• Wabtec recently beat earnings expectations with Q2 EPS of $2.71 versus $2.62 expected, and revenue rose 13% year over year to $2.95 billion. The company also raised FY 2026 guidance to $10.25-$10.65 EPS.
• Insiders have been selling shares recently, including CEO Rafael Santana and insider Sameer Gaur. Despite that, institutional investors still own a large majority of the stock at 91.69%.

Wabtec (NYSE:WAB - Get Free Report) was upgraded by equities research analysts at Stephens to a "strong-buy" rating in a note issued to investors on Wednesday,Zacks.com reports.

Several other research firms have also issued reports on WAB. Wolfe Research reiterated an "outperform" rating and set a $303.00 target price on shares of Wabtec in a report on Thursday, April 23rd. Wall Street Zen downgraded Wabtec from a "buy" rating to a "hold" rating in a research note on Saturday, March 14th. Rothschild & Co Redburn upgraded Wabtec from a "neutral" rating to a "buy" rating and upped their price objective for the stock from $262.00 to $285.00 in a research note on Thursday, March 26th. Jefferies Financial Group reissued a "buy" rating and issued a $290.00 price objective (down from $300.00) on shares of Wabtec in a report on Tuesday, March 31st. Finally, Wells Fargo & Company raised their target price on shares of Wabtec from $270.00 to $284.00 and gave the company an "equal weight" rating in a research note on Thursday, April 23rd. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, Wabtec has an average rating of "Moderate Buy" and an average price target of $289.82.

Wabtec Stock Performance

Shares of WAB opened at $259.14 on Wednesday. The stock has a market capitalization of $43.97 billion, a price-to-earnings ratio of 36.65, a PEG ratio of 1.85 and a beta of 0.94. Wabtec has a 12 month low of $184.26 and a 12 month high of $284.91. The firm has a fifty day simple moving average of $264.92 and a 200 day simple moving average of $250.99. The company has a current ratio of 1.02, a quick ratio of 0.54 and a debt-to-equity ratio of 0.42.

Wabtec (NYSE:WAB - Get Free Report) last issued its quarterly earnings results on Wednesday, April 22nd. The transportation company reported $2.71 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.62 by $0.09. Wabtec had a net margin of 10.52% and a return on equity of 14.52%. The firm had revenue of $2.95 billion for the quarter, compared to analyst estimates of $3.08 billion. During the same period in the previous year, the business earned $2.28 EPS. The company's revenue was up 13.0% compared to the same quarter last year. Wabtec has set its FY 2026 guidance at 10.250-10.650 EPS. Research analysts forecast that Wabtec will post 10.61 EPS for the current fiscal year.

Insider Activity at Wabtec

In other news, insider Sameer Gaur sold 1,082 shares of the firm's stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $263.50, for a total value of $285,107.00. Following the completion of the sale, the insider directly owned 11,985 shares of the company's stock, valued at $3,158,047.50. This trade represents a 8.28% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CEO Rafael Santana sold 1,163 shares of the stock in a transaction on Monday, July 6th. The shares were sold at an average price of $262.07, for a total value of $304,787.41. Following the completion of the sale, the chief executive officer owned 122,914 shares in the company, valued at approximately $32,212,071.98. This trade represents a 0.94% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 66,586 shares of company stock worth $17,867,065 in the last 90 days. Corporate insiders own 0.57% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Valeo Financial Advisors LLC lifted its position in Wabtec by 9.1% during the second quarter. Valeo Financial Advisors LLC now owns 1,901 shares of the transportation company's stock worth $513,000 after acquiring an additional 159 shares during the last quarter. Czech National Bank lifted its holdings in Wabtec by 4.0% during the 2nd quarter. Czech National Bank now owns 48,297 shares of the transportation company's stock worth $13,021,000 after purchasing an additional 1,857 shares during the last quarter. Bill Few Associates Inc. boosted its stake in Wabtec by 15.5% in the 2nd quarter. Bill Few Associates Inc. now owns 2,725 shares of the transportation company's stock valued at $735,000 after purchasing an additional 365 shares during the period. GAMMA Investing LLC boosted its stake in Wabtec by 5.7% in the 2nd quarter. GAMMA Investing LLC now owns 5,160 shares of the transportation company's stock valued at $1,391,000 after purchasing an additional 280 shares during the period. Finally, CoreCap Advisors LLC grew its holdings in Wabtec by 25.9% in the 2nd quarter. CoreCap Advisors LLC now owns 321 shares of the transportation company's stock valued at $86,000 after buying an additional 66 shares in the last quarter. Institutional investors and hedge funds own 91.69% 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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