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

Wabtec (NYSE:WAB) was the recipient of a significant increase in short interest in the month of February. As of February 27th, there was short interest totaling 2,287,421 shares, an increase of 27.8% from the February 12th total of 1,789,915 shares. Based on an average trading volume of 925,798 shares, the short-interest ratio is currently 2.5 days. Currently, 1.4% of the company’s shares are sold short. Currently, 1.4% of the company’s shares are sold short. Based on an average trading volume of 925,798 shares, the short-interest ratio is currently 2.5 days.

Wabtec Stock Up 1.1%

Shares of WAB traded up $2.56 during mid-day trading on Monday, hitting $239.32. 586,093 shares of the company’s stock were exchanged, compared to its average volume of 874,873. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.11 and a quick ratio of 0.57. Wabtec has a 52 week low of $151.81 and a 52 week high of $266.27. The company has a market cap of $40.81 billion, a PE ratio of 35.04, a P/E/G ratio of 1.79 and a beta of 0.99. The company has a 50-day simple moving average of $242.81 and a 200 day simple moving average of $216.80.

Wabtec (NYSE:WAB) last announced its quarterly earnings data on Wednesday, February 11th. The transportation company reported $2.10 EPS for the quarter, topping analysts’ consensus estimates of $2.08 by $0.02. Wabtec had a net margin of 10.48% and a return on equity of 14.12%. The business had revenue of $2.97 billion for the quarter, compared to analyst estimates of $2.86 billion. During the same quarter in the previous year, the firm posted $1.68 earnings per share. The firm’s revenue for the quarter was up 14.8% on a year-over-year basis. Wabtec has set its FY 2026 guidance at 10.050-10.450 EPS. On average, research analysts forecast that Wabtec will post 8.54 earnings per share for the current fiscal year.

Wabtec announced that its board has initiated a stock repurchase 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 buy up to 2.9% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board believes its stock is undervalued.

Wabtec Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, March 2nd. Shareholders of record on Tuesday, February 17th were given a dividend of $0.31 per share. This is a boost from Wabtec’s previous quarterly dividend of $0.25. The ex-dividend date of this dividend was Tuesday, February 17th. This represents a $1.24 annualized dividend and a yield of 0.5%. Wabtec’s payout ratio is presently 18.16%.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on WAB. Morgan Stanley reaffirmed an “overweight” rating and issued a $315.00 price target on shares of Wabtec in a research note on Tuesday, February 17th. Weiss Ratings reissued a “buy (b)” rating on shares of Wabtec in a research report on Wednesday, January 21st. JPMorgan Chase & Co. boosted their price objective on shares of Wabtec from $215.00 to $245.00 and gave the company a “neutral” rating in a research report on Wednesday, January 14th. KeyCorp upped their target price on shares of Wabtec from $240.00 to $308.00 and gave the stock an “overweight” rating in a research note on Thursday, February 12th. Finally, Wall Street Zen cut Wabtec from a “buy” rating to a “hold” rating in a report on Saturday. Eight analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $269.00.

Insider Transactions at Wabtec

In other news, insider Nalin Jain sold 7,936 shares of Wabtec stock in a transaction dated Wednesday, February 25th. The stock was sold at an average price of $264.09, for a total transaction of $2,095,818.24. Following the transaction, the insider owned 6,364 shares in the company, valued at $1,680,668.76. The trade was a 55.50% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO John A. Olin sold 11,000 shares of the business’s stock in a transaction that occurred on Tuesday, February 24th. The shares were sold at an average price of $263.30, for a total value of $2,896,300.00. Following the completion of the transaction, the chief financial officer owned 60,487 shares of the company’s stock, valued at $15,926,227.10. This represents a 15.39% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 33,310 shares of company stock valued at $8,541,509. Insiders own 1.10% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of WAB. Hilltop Holdings Inc. raised its stake in shares of Wabtec by 3.9% during the 4th quarter. Hilltop Holdings Inc. now owns 1,069 shares of the transportation company’s stock worth $228,000 after purchasing an additional 40 shares in the last quarter. CI Investments Inc. grew its stake in shares of Wabtec by 6.1% in the third quarter. CI Investments Inc. now owns 865 shares of the transportation company’s stock valued at $173,000 after buying an additional 50 shares in the last quarter. IHT Wealth Management LLC increased its holdings in Wabtec by 1.0% during the fourth quarter. IHT Wealth Management LLC now owns 4,856 shares of the transportation company’s stock worth $1,037,000 after buying an additional 50 shares during the last quarter. Carnegie Investment Counsel increased its holdings in Wabtec by 2.6% during the fourth quarter. Carnegie Investment Counsel now owns 2,051 shares of the transportation company’s stock worth $438,000 after buying an additional 51 shares during the last quarter. Finally, Quadrant Capital Group LLC raised its position in Wabtec by 1.3% during the third quarter. Quadrant Capital Group LLC now owns 4,082 shares of the transportation company’s stock worth $818,000 after acquiring an additional 54 shares in the last quarter. 91.69% of the stock is currently owned by institutional investors.

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.