Wabtec (NYSE:WAB) Hits New 12-Month High – Time to Buy?

Wabtec (NYSE:WAB)’s stock price hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $263.64 and last traded at $263.1650, with a volume of 50665 shares changing hands. The stock had previously closed at $259.69.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on the company. KeyCorp raised their price objective on Wabtec from $240.00 to $308.00 and gave the company an “overweight” rating in a research report on Thursday, February 12th. Weiss Ratings reissued a “buy (b)” rating on shares of Wabtec in a research report on Wednesday, January 21st. Citigroup upped their price target on Wabtec from $258.00 to $283.00 and gave the stock a “buy” rating in a research report on Thursday, February 12th. Susquehanna set a $300.00 price objective on Wabtec in a research report on Thursday, February 12th. Finally, Wall Street Zen raised Wabtec from a “hold” rating to a “buy” rating in a research report on Saturday, February 14th. Eight investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $269.00.

Wabtec Stock Performance

The company has a quick ratio of 0.57, a current ratio of 1.11 and a debt-to-equity ratio of 0.38. The stock has a market capitalization of $45.14 billion, a PE ratio of 38.76, a PEG ratio of 1.98 and a beta of 1.01. The firm has a 50 day moving average price of $231.02 and a 200-day moving average price of $209.65.

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

Wabtec Increases Dividend

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

Wabtec announced that its board has approved a stock repurchase plan on Wednesday, February 11th that allows the company to repurchase $1.20 billion in outstanding shares. This repurchase authorization allows the transportation company to repurchase up to 2.9% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s board believes its shares are undervalued.

Insider Buying and Selling at Wabtec

In related news, insider Michael Fetsko sold 5,058 shares of Wabtec stock in a transaction that occurred on Friday, December 12th. The stock was sold at an average price of $215.72, for a total transaction of $1,091,111.76. Following the completion of the transaction, the insider directly owned 36,882 shares in the company, valued at approximately $7,956,185.04. This trade represents a 12.06% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Rogerio Mendonca sold 2,019 shares of the company’s stock in a transaction that occurred on Thursday, December 4th. The stock was sold at an average price of $214.51, for a total value of $433,095.69. Following the completion of the sale, the insider owned 9,516 shares in the company, valued at approximately $2,041,277.16. This represents a 17.50% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 16,625 shares of company stock worth $3,666,601. Insiders own 1.10% of the company’s stock.

Hedge Funds Weigh In On Wabtec

Several large investors have recently made changes to their positions in the company. Norges Bank acquired a new position in shares of Wabtec in the fourth quarter worth about $409,039,000. Price T Rowe Associates Inc. MD increased its stake in shares of Wabtec by 20.3% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 7,965,503 shares of the transportation company’s stock valued at $1,700,238,000 after purchasing an additional 1,344,744 shares in the last quarter. Nordea Investment Management AB raised its holdings in Wabtec by 55.5% in the 4th quarter. Nordea Investment Management AB now owns 3,069,340 shares of the transportation company’s stock worth $659,939,000 after purchasing an additional 1,095,083 shares during the period. Farallon Capital Management LLC raised its holdings in Wabtec by 68.6% in the 3rd quarter. Farallon Capital Management LLC now owns 2,205,098 shares of the transportation company’s stock worth $442,056,000 after purchasing an additional 896,900 shares during the period. Finally, Bank of Montreal Can boosted its position in Wabtec by 360.0% during the fourth quarter. Bank of Montreal Can now owns 885,197 shares of the transportation company’s stock worth $188,945,000 after purchasing an additional 692,773 shares in the last quarter. 91.69% of the stock is currently owned by institutional investors and hedge funds.

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.