Now Is A Suitable Moment For A Long-Term Purchase Of Wabtec Corporation (NYSE: WAB)


Barrow, Hanley, Mewhinney & Strau. recently announced the acquisition of new stake in Wabtec Corporation (NYSE:WAB). The institutional investor has increased its shareholding in the Industrials company by 3.76% to 8.25 million shares with purchase of 0.3 million shares. This fresh investment now brings its stake to 4.34% valued currently at $475.14 million. In addition, Pzena Investment Management LLC raised its holdings by 0.18 million to 6.71 million shares. And Farallon Capital Management LLC has lifted its position by 24.72% or 1.25 million shares – to 6.32 million shares.

With over 2.76 million Wabtec Corporation (WAB) shares trading Tuesday and a closing price of $64.24 on the day, the dollar volume was approximately $177.22 million. The shares have shown a positive weekly performance of 5.66% and its price on 07/28/20 gained nearly 3.60%. Currently, there are 190.80M common shares owned by the public and among those 180.09M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 12 analysts who have offered their price forecasts for WAB have a consensus price objective of $68.82. The analysts have set the share’s price value over the next 12 months at a high of $84.00 and a low of $55.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Wabtec Corporation stock is 2.50 for the next 12 months. The average price target is 6.66% above its last price level and an upside to the estimated low will see the stock lose -16.8% over that period. But an upside of 23.52% will see the stock hit the forecast high price target while mean target price for the stock is $70.00.

Insiders at the company have transacted a total of 53 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 30 of these insider trades were purchases, accounting for 146,216 shares. Insider sales of the common stock occurred on 23 occasions, with total insider shares sold totaling 159,783 shares.

The top 3 mutual fund holders in Wabtec Corporation are Vanguard Total Stock Market Index, Vanguard Windsor Funds – Vanguard, and T Rowe Price Growth Stock Fund. Vanguard Total Stock Market Index owns 5.16 million shares of the company’s stock, all valued at over $296.84 million. The company sold 99120.0 shares recently to bring their total holdings to about 2.71% of the shares outstanding. Vanguard Windsor Funds – Vanguard sold 15583.0 shares to see its total holdings shrink to 4.77 million shares valued at over $274.82 million and representing 2.51% of the shares outstanding. T Rowe Price Growth Stock Fund sold -0.32 million shares to bring its total holdings to over 4.64 million shares at a value of $267.28 million. T Rowe Price Growth Stock Fund now owns shares totaling to 2.44% of the shares outstanding.

Shares of Wabtec Corporation (NYSE: WAB) opened at $63.15, up $1.14 from a prior closing price of $62.01. However, the script later closed the day at $64.24, up 3.60%. The company’s stock has a 5-day price change of 5.66% and 14.06% over the past three months. WAB shares are trading -17.43% year to date (YTD), with the 12-month market performance down to -9.65% lower. It has a 12-month low price of $35.07 and touched a high of $81.75 over the same period. Currently, 2.76 million shares have been traded, compared to an average intraday trading volume of 1.35 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 7.90%, 5.92%, and -2.51% respectively.

Institutional ownership of Wabtec Corporation (NYSE: WAB) shares accounts for 93.70% of the company’s 190.80M shares outstanding. Mutual fund holders own 41.88%, while other institutional holders and individual stakeholders account for 50.51% and 16.58% respectively.

It has a market capitalization of $12.20B and a beta (3y monthly) value of 1.51. The stock’s trailing 12-month PE ratio is 27.83, while the earnings-per-share (ttm) stands at $2.31. The company has a PEG of 3.81 and a Quick Ratio of 0.80 with the debt-to-equity ratio at 0.49. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.04% over the week and 3.02% over the month.

Analysts forecast that Wabtec Corporation (WAB) will achieve an EPS of $0.75 for the current quarter, $0.87 for the next quarter and $4.29 for 2021. The lowest estimate earnings-per-share for the quarter is $0.6 while analysts give the company a high EPS estimate of $0.97. Comparatively, EPS for the current quarter was $1.06 a year ago. Earnings per share for the fiscal year are expected to decrease by -36.50%, and 17.85% over the next financial year. EPS should grow at an annualized rate of 7.30% over the next five years, compared to -12.60% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 12 brokerage firm advisors rate Wabtec Corporation (WAB) as a “Moderate Buy” at a consensus score of 2.50. Specifically, 6 Wall Street analysts polled rate the stock as a buy, while 3 of the 12 advise that investors “hold,” and 1 rated it as a “Sell.”

Looking at the support for the WAB, a number of firms have released research notes about the stock. Wolfe Research stated their Underperform rating for the stock in a research note on July 07, 2020, with the firm’s price target at. Goldman coverage for the Wabtec Corporation (WAB) stock in a research note released on June 03, 2020 offered a Neutral rating with a price target of $65. Cowen was of a view on May 13, 2020 that the stock is Outperform, while Morgan Stanley gave the stock Overweight rating on March 17, 2020, issuing a price target of $77. Stephens on their part issued Overweight rating on January 02, 2020.


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