Wabtec (NYSE:WAB) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Wabtec received an average analyst rating of “Moderate Buy” from 12 brokerages, with 10 buy ratings and 2 hold ratings. The average 1-year price target is about $289.82.
• The company reported strong quarterly earnings, with EPS of $2.71 beating estimates, while revenue rose 13% year over year to $2.95 billion. Wabtec also reiterated FY 2026 EPS guidance of 10.25 to 10.65.
• Wabtec announced a $1.2 billion share buyback program and a quarterly dividend of $0.31 per share. Insider selling was also notable, with the CFO and an EVP among recent sellers.

Shares of Wabtec (NYSE:WAB - Get Free Report) have been given an average recommendation of "Moderate Buy" by the twelve brokerages that are covering the stock, Marketbeat reports. Two analysts have rated the stock with a hold rating and ten have issued a buy rating on the company. The average 1-year price target among brokers that have issued ratings on the stock in the last year is $289.8182.

Several equities analysts have issued reports on the stock. Morgan Stanley reissued an "overweight" rating and issued a $318.00 price objective on shares of Wabtec in a research note on Monday, April 27th. Wolfe Research reissued an "outperform" rating and issued a $303.00 price objective on shares of Wabtec in a research note on Thursday, April 23rd. Stephens boosted their price objective on shares of Wabtec from $230.00 to $290.00 and gave the company an "overweight" rating in a research note on Thursday, February 12th. Jefferies Financial Group reaffirmed a "buy" rating and set a $290.00 price target (down from $300.00) on shares of Wabtec in a research note on Tuesday, March 31st. Finally, Wells Fargo & Company upped their price target on shares of Wabtec from $270.00 to $284.00 and gave the stock an "equal weight" rating in a research note on Thursday, April 23rd.

Insider Buying and Selling at Wabtec

In other news, CFO John A. Olin sold 11,000 shares of the business's stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $263.30, for a total transaction of $2,896,300.00. Following the sale, the chief financial officer owned 60,487 shares of the company's stock, valued at $15,926,227.10. The trade was a 15.39% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Gina Trombley sold 4,013 shares of the business's stock in a transaction that occurred on Thursday, March 12th. The stock was sold at an average price of $241.87, for a total value of $970,624.31. Following the sale, the executive vice president directly owned 13,841 shares in the company, valued at $3,347,722.67. This trade represents a 22.48% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 87,277 shares of company stock worth $23,216,740. Company insiders own 0.57% of the company's stock.

Institutional Investors Weigh In On Wabtec

Several institutional investors have recently modified their holdings of WAB. Guggenheim Capital LLC boosted its stake in shares of Wabtec by 7.4% during the 2nd quarter. Guggenheim Capital LLC now owns 4,938 shares of the transportation company's stock worth $1,034,000 after acquiring an additional 342 shares in the last quarter. Bank of Nova Scotia boosted its position in shares of Wabtec by 0.5% in the 2nd quarter. Bank of Nova Scotia now owns 17,890 shares of the transportation company's stock worth $3,745,000 after buying an additional 97 shares in the last quarter. Nebula Research & Development LLC boosted its position in shares of Wabtec by 208.7% in the 2nd quarter. Nebula Research & Development LLC now owns 5,386 shares of the transportation company's stock worth $1,128,000 after buying an additional 3,641 shares in the last quarter. Treasurer of the State of North Carolina boosted its position in shares of Wabtec by 11.6% in the 2nd quarter. Treasurer of the State of North Carolina now owns 92,097 shares of the transportation company's stock worth $19,281,000 after buying an additional 9,545 shares in the last quarter. Finally, Ieq Capital LLC boosted its position in shares of Wabtec by 19.2% in the 2nd quarter. Ieq Capital LLC now owns 30,352 shares of the transportation company's stock worth $6,354,000 after buying an additional 4,889 shares in the last quarter. Hedge funds and other institutional investors own 91.69% of the company's stock.

Wabtec Stock Performance

Shares of WAB opened at $257.00 on Friday. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.54 and a current ratio of 1.02. The stock has a market capitalization of $43.61 billion, a P/E ratio of 36.35, a P/E/G ratio of 1.83 and a beta of 0.97. The company's fifty day moving average is $256.87 and its two-hundred day moving average is $237.37. Wabtec has a 1 year low of $184.26 and a 1 year high of $275.84.

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, beating the consensus estimate of $2.62 by $0.09. The company had revenue of $2.95 billion for the quarter, compared to analysts' expectations of $3.08 billion. Wabtec had a net margin of 10.52% and a return on equity of 14.52%. Wabtec's revenue was up 13.0% compared to the same quarter last year. During the same period in the previous year, the company posted $2.28 EPS. Wabtec has set its FY 2026 guidance at 10.250-10.650 EPS. On average, sell-side analysts predict that Wabtec will post 10.61 earnings per share for the current year.

Wabtec declared that its board has authorized a share buyback program on Wednesday, February 11th that authorizes the company to buyback $1.20 billion in outstanding shares. This buyback authorization authorizes the transportation company to purchase up to 2.9% of its shares through open market purchases. Shares buyback programs are often an indication that the company's leadership believes its stock is undervalued.

Wabtec Announces Dividend

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

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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