Wabtec (NYSE:WAB) Sees Significant Growth in Short Interest

Key Points

• Short interest surged 19.2% in March, rising to 2,207,643 shares as of March 31 (about 1.3% of the company's shares) with a days-to-cover ratio of roughly 2.7 days.
• Company insiders have been net sellers, disposing of 92,364 shares worth $24.52 million over the past 90 days and now own just 0.57% of the stock.
• Wabtec posted a modest earnings beat (EPS $2.10 vs. $2.08) with revenue up 14.8% YoY, set FY2026 guidance of $10.05–$10.45 EPS, increased the quarterly dividend to $0.31, and authorized a $1.2 billion share buyback while analysts hold a consensus "Moderate Buy" target of $275.75.

Wabtec (NYSE:WAB - Get Free Report) saw a large increase in short interest in the month of March. As of March 31st, there was short interest totaling 2,207,643 shares, an increase of 19.2% from the March 15th total of 1,852,504 shares. Currently, 1.3% of the company's shares are short sold. Based on an average daily trading volume, of 826,410 shares, the days-to-cover ratio is currently 2.7 days.

Insider Buying and Selling

In related news, insider Sameer Gaur sold 1,150 shares of the business's stock in a transaction on Thursday, February 26th. The shares were sold at an average price of $262.62, for a total transaction of $302,013.00. Following the transaction, the insider owned 12,017 shares in the company, valued at $3,155,904.54. The trade was a 8.73% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Gina Trombley sold 4,013 shares of the firm's stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $241.87, for a total transaction of $970,624.31. Following the completion of the sale, the executive vice president owned 13,841 shares of the company's stock, valued at $3,347,722.67. The trade was a 22.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 92,364 shares of company stock worth $24,522,522 over the last ninety days. 0.57% of the stock is owned by company insiders.

Hedge Funds Weigh In On Wabtec

Several hedge funds have recently modified their holdings of the company. Piscataqua Savings Bank increased its position in shares of Wabtec by 12,800.0% during the third quarter. Piscataqua Savings Bank now owns 129 shares of the transportation company's stock valued at $26,000 after acquiring an additional 128 shares during the last quarter. Motco raised its stake in shares of Wabtec by 6,600.0% during the 3rd quarter. Motco now owns 134 shares of the transportation company's stock worth $27,000 after purchasing an additional 132 shares during the period. Clal Insurance Enterprises Holdings Ltd boosted its holdings in shares of Wabtec by 125.9% in the 4th quarter. Clal Insurance Enterprises Holdings Ltd now owns 131 shares of the transportation company's stock worth $28,000 after buying an additional 73 shares during the last quarter. Manchester Capital Management LLC boosted its holdings in shares of Wabtec by 122.0% in the 4th quarter. Manchester Capital Management LLC now owns 131 shares of the transportation company's stock worth $28,000 after buying an additional 72 shares during the last quarter. Finally, McMillan Office Inc. bought a new position in Wabtec during the fourth quarter valued at about $31,000. Institutional investors own 91.69% of the company's stock.

Wabtec Stock Up 3.2%

Shares of Wabtec stock traded up $8.21 on Friday, hitting $263.71. The company had a trading volume of 972,650 shares, compared to its average volume of 1,039,007. Wabtec has a 1 year low of $165.17 and a 1 year high of $275.84. 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 stock has a 50 day moving average of $253.34 and a 200-day moving average of $226.52. The stock has a market capitalization of $44.87 billion, a price-to-earnings ratio of 38.61, a P/E/G ratio of 1.92 and a beta of 0.99.

Wabtec (NYSE:WAB - Get Free Report) last announced its earnings results on Wednesday, February 11th. The transportation company reported $2.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.08 by $0.02. The company had revenue of $2.97 billion for the quarter, compared to analysts' expectations of $2.86 billion. Wabtec had a return on equity of 14.12% and a net margin of 10.48%.Wabtec's quarterly revenue was up 14.8% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.68 earnings per share. Wabtec has set its FY 2026 guidance at 10.050-10.450 EPS. As a group, sell-side analysts forecast that Wabtec will post 8.54 earnings per share for the current year.

Wabtec Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, March 2nd. Stockholders 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%. The ex-dividend date was Tuesday, February 17th. This is a positive change from Wabtec's previous quarterly dividend of $0.25. Wabtec's dividend payout ratio (DPR) is currently 18.16%.

Wabtec announced that its Board of Directors has initiated a share buyback program on Wednesday, February 11th that permits the company to repurchase $1.20 billion in shares. This repurchase authorization permits the transportation company to purchase up to 2.9% of its shares through open market purchases. Shares repurchase programs are often a sign that the company's board believes its stock is undervalued.

Analysts Set New Price Targets

A number of research analysts recently weighed in on WAB shares. Stephens upped their price target on Wabtec from $230.00 to $290.00 and gave the stock an "overweight" rating in a research note on Thursday, February 12th. Wolfe Research raised Wabtec from a "peer perform" rating to an "outperform" rating and set a $245.00 price objective for the company in a research note on Thursday, January 8th. JPMorgan Chase & Co. cut their target price on Wabtec from $290.00 to $280.00 and set a "neutral" rating on the stock in a report on Friday, April 10th. Citigroup lifted their price target on shares of Wabtec from $283.00 to $292.00 and gave the company a "buy" rating in a research report on Thursday, April 9th. Finally, Morgan Stanley restated an "overweight" rating and set a $315.00 price objective on shares of Wabtec in a report on Tuesday, February 17th. Ten equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $275.75.

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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