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

Wabtec (NYSE:WAB) was the target of a large increase in short interest in the month of April. As of April 15th, there was short interest totaling 2,493,303 shares, an increase of 12.9% from the March 31st total of 2,207,643 shares. Approximately 1.5% of the shares of the company are short sold. Based on an average daily trading volume, of 1,245,609 shares, the days-to-cover ratio is currently 2.0 days.

Wabtec Price Performance

Shares of WAB stock traded down $4.62 during trading hours on Friday, reaching $265.27. The company had a trading volume of 664,324 shares, compared to its average volume of 1,063,402. 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 fifty day moving average of $255.17 and a 200-day moving average of $230.70. The company has a market capitalization of $45.01 billion, a price-to-earnings ratio of 37.52, a PEG ratio of 1.93 and a beta of 0.97. Wabtec has a 12-month low of $184.26 and a 12-month high of $275.84.

Wabtec (NYSE:WAB) last issued its quarterly earnings data on Wednesday, April 22nd. The transportation company reported $2.71 earnings per share for the quarter, topping the consensus estimate of $2.62 by $0.09. The company had revenue of $2.95 billion during the quarter, compared to analyst estimates of $3.08 billion. Wabtec had a return on equity of 14.52% and a net margin of 10.52%.The firm’s revenue for the quarter was up 13.0% compared to the same quarter last year. During the same period in the prior year, the business posted $2.28 earnings per share. Wabtec has set its FY 2026 guidance at 10.250-10.650 EPS. On average, equities analysts anticipate that Wabtec will post 10.61 earnings per share for the current year.

Wabtec Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, March 2nd. Investors of record on Tuesday, February 17th were given a $0.31 dividend. The ex-dividend date was Tuesday, February 17th. This is a positive change from Wabtec’s previous quarterly dividend of $0.25. This represents a $1.24 annualized dividend and a yield of 0.5%. Wabtec’s dividend payout ratio (DPR) is currently 17.54%.

Wabtec declared that its Board of Directors has authorized a stock repurchase program on Wednesday, February 11th that allows the company to repurchase $1.20 billion in shares. This repurchase authorization allows the transportation company to repurchase up to 2.9% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board believes its stock is undervalued.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on WAB. Weiss Ratings restated a “buy (b)” rating on shares of Wabtec in a research note on Monday, April 20th. Jefferies Financial Group reiterated a “buy” rating and set a $290.00 price objective (down from $300.00) on shares of Wabtec in a research note on Tuesday, March 31st. Rothschild & Co Redburn upgraded Wabtec from a “neutral” rating to a “buy” rating and boosted their price objective for the stock from $262.00 to $285.00 in a research note on Thursday, March 26th. JPMorgan Chase & Co. cut their price objective on Wabtec from $290.00 to $280.00 and set a “neutral” rating for the company in a research note on Friday, April 10th. Finally, Wells Fargo & Company boosted their price objective on Wabtec from $270.00 to $284.00 and gave the stock an “equal weight” rating in a research note on Thursday, April 23rd. Ten equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $289.82.

Insiders Place Their Bets

In related 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 value of $2,095,818.24. Following the completion of 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Gina Trombley sold 4,013 shares of Wabtec stock in a transaction dated Thursday, March 12th. The shares were sold at an average price of $241.87, for a total value of $970,624.31. Following the completion of the transaction, the executive vice president owned 13,841 shares of the company’s stock, valued at approximately $3,347,722.67. This represents a 22.48% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 92,364 shares of company stock worth $24,522,522. 0.57% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Whipplewood Advisors LLC acquired a new position in Wabtec during the first quarter worth $25,000. Piscataqua Savings Bank lifted its stake in Wabtec by 12,800.0% during the third quarter. Piscataqua Savings Bank now owns 129 shares of the transportation company’s stock worth $26,000 after purchasing an additional 128 shares in the last quarter. Motco lifted its stake in Wabtec by 6,600.0% during the third quarter. Motco now owns 134 shares of the transportation company’s stock worth $27,000 after purchasing an additional 132 shares in the last quarter. Clal Insurance Enterprises Holdings Ltd lifted its stake in Wabtec by 125.9% during the fourth quarter. Clal Insurance Enterprises Holdings Ltd now owns 131 shares of the transportation company’s stock worth $28,000 after purchasing an additional 73 shares in the last quarter. Finally, Manchester Capital Management LLC lifted its stake in Wabtec by 122.0% during the fourth quarter. Manchester Capital Management LLC now owns 131 shares of the transportation company’s stock worth $28,000 after purchasing an additional 72 shares in the last quarter. 91.69% of the stock is currently owned by hedge funds and other institutional investors.

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.