Citigroup Inc. Lowers Stake in Wabtec $WAB

Citigroup Inc. trimmed its holdings in Wabtec (NYSE:WAB) by 18.4% in the third quarter, according to its most recent disclosure with the SEC. The fund owned 302,387 shares of the transportation company’s stock after selling 68,174 shares during the period. Citigroup Inc. owned 0.18% of Wabtec worth $60,620,000 at the end of the most recent reporting period.

Several other hedge funds have also made changes to their positions in the business. Vanguard Group Inc. increased its position in Wabtec by 2.5% in the 2nd quarter. Vanguard Group Inc. now owns 19,930,893 shares of the transportation company’s stock valued at $4,172,532,000 after acquiring an additional 493,437 shares during the period. Geode Capital Management LLC grew its stake in shares of Wabtec by 0.7% in the 2nd quarter. Geode Capital Management LLC now owns 4,288,014 shares of the transportation company’s stock valued at $893,830,000 after purchasing an additional 30,489 shares during the last quarter. Boston Partners increased its holdings in shares of Wabtec by 9.0% in the second quarter. Boston Partners now owns 2,261,456 shares of the transportation company’s stock valued at $471,410,000 after purchasing an additional 186,248 shares during the period. Nordea Investment Management AB raised its stake in shares of Wabtec by 24.0% during the third quarter. Nordea Investment Management AB now owns 1,974,257 shares of the transportation company’s stock worth $393,252,000 after purchasing an additional 381,728 shares during the last quarter. Finally, Norges Bank acquired a new stake in shares of Wabtec during the second quarter worth $347,194,000. Institutional investors and hedge funds own 91.69% of the company’s stock.

Insiders Place Their Bets

In other Wabtec news, CEO Rafael Santana sold 1,798 shares of the firm’s stock in a transaction dated Tuesday, February 10th. The shares were sold at an average price of $245.71, for a total transaction of $441,786.58. Following the completion of the transaction, the chief executive officer directly owned 118,749 shares in the company, valued at approximately $29,177,816.79. This trade represents a 1.49% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Gregory Sbrocco sold 952 shares of the company’s stock in a transaction dated Thursday, February 19th. The shares were sold at an average price of $258.43, for a total transaction of $246,025.36. Following the completion of the sale, the executive vice president directly owned 21,159 shares in the company, valued at $5,468,120.37. This trade represents a 4.31% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 20,125 shares of company stock valued at $4,591,336. Company insiders own 1.10% of the company’s stock.

Wabtec Stock Down 0.8%

WAB stock opened at $262.77 on Tuesday. The company has a current ratio of 1.11, a quick ratio of 0.57 and a debt-to-equity ratio of 0.38. The company’s 50-day moving average price is $231.97 and its 200 day moving average price is $210.47. Wabtec has a 52 week low of $151.81 and a 52 week high of $265.88. The company has a market cap of $44.81 billion, a P/E ratio of 38.47, a P/E/G ratio of 2.00 and a beta of 1.01.

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

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

Wabtec Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, March 2nd. Shareholders of record on Tuesday, February 17th will be issued a $0.31 dividend. This represents a $1.24 annualized dividend and a yield of 0.5%. This is a positive change from Wabtec’s previous quarterly dividend of $0.25. The ex-dividend date of this dividend is Tuesday, February 17th. Wabtec’s dividend payout ratio is currently 18.16%.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on WAB. Wells Fargo & Company boosted their price objective on shares of Wabtec from $224.00 to $270.00 and gave the company an “equal weight” rating in a research note on Friday, February 13th. Bank of America boosted their price target on shares of Wabtec from $228.00 to $233.00 and gave the stock a “buy” rating in a research note on Thursday, November 13th. KeyCorp raised their price objective on shares of Wabtec from $240.00 to $308.00 and gave the company an “overweight” rating in a research report on Thursday, February 12th. Susquehanna set a $300.00 price objective on Wabtec in a report on Thursday, February 12th. Finally, JPMorgan Chase & Co. increased their target price on Wabtec from $215.00 to $245.00 and gave the stock a “neutral” rating in a research note on Wednesday, January 14th. Eight research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, Wabtec has an average rating of “Moderate Buy” and an average target price of $269.00.

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.