David L. DeNinno, Executive Vice President, General Counsel, and Secretary of Westinghouse Air Brake Technologies Corp. (NYSE:WAB), recently sold 10,000 shares of the company. The sale, which took place on October 24, 2024, was executed at a weighted average price of $188.5991 per share, generating approximately $1.89 million.
Following the transaction, DeNinno holds 55,352 shares of Wabtec. The shares were sold in multiple transactions at prices ranging from $188.50 to $188.905. The company, known for its railroad equipment manufacturing, continues to be a significant player in its industry.
In other recent news, Wabtec Corporation reported strong third-quarter earnings, with sales up by 4.5% to $2.7 billion compared to the same period last year. The company's adjusted earnings per share (EPS) also saw an increase of approximately 18% year over year, reaching $2.00. This financial success was reflected in Wabtec's backlog, which grew by 7.5% to $7.6 billion, contributing to a total multiyear backlog of $22 billion.
Recent developments include a series of contract wins, such as the acquisition of a Tier 4 locomotive contract and a long-term parts agreement with a North American Class 1 railroad. Analysts from Stephens have raised their price target for Wabtec to $205, up from $190, following these positive results. The company's international business is also on the rise, with the international locomotive orders pipeline reaching multi-year highs, a promising sign for Wabtec's global market presence.
Wabtec also reported a robust cash flow in the third quarter, enabling the repurchase of around 2% of its outstanding shares. Despite a revised down North American railcar build forecast to 41,000 for 2024, the company raised its full-year adjusted EPS guidance for 2024 to between $7.45 and $7.65, reflecting a 27.5% rise at the midpoint. These recent developments indicate a positive trajectory for Wabtec's continued growth.
InvestingPro Insights
Westinghouse Air Brake Technologies Corp. (NYSE:WAB), commonly known as Wabtec, has been demonstrating strong financial performance, which aligns with the recent insider sale by Executive Vice President David L. DeNinno. According to InvestingPro data, Wabtec boasts a market capitalization of $33.44 billion, reflecting its substantial presence in the railroad equipment manufacturing sector.
The company's stock has shown impressive momentum, with a one-year price total return of 82.49% as of the latest data. This remarkable performance is further emphasized by the fact that Wabtec is trading near its 52-week high, with its current price at 98.07% of that peak. These metrics suggest that DeNinno's sale may be capitalizing on the stock's strong recent performance.
InvestingPro Tips highlight Wabtec's financial stability and growth potential. The company has maintained dividend payments for 30 consecutive years, demonstrating a commitment to shareholder returns. Additionally, Wabtec operates with a moderate level of debt, which provides financial flexibility in a capital-intensive industry.
For investors seeking a deeper understanding of Wabtec's potential, InvestingPro offers 12 additional tips, providing a comprehensive analysis of the company's financial health and market position.
The company's P/E ratio of 31.54 indicates that investors are willing to pay a premium for Wabtec's earnings, possibly due to its strong market position and growth prospects. This is supported by the company's revenue growth of 9.23% over the last twelve months, reaching $10.33 billion.
Wabtec's financial strength is further underscored by its profitability, with a gross profit margin of 32.58% and an operating income margin of 15.79% for the last twelve months. These figures suggest efficient operations and pricing power within its market.
As the railroad industry continues to evolve, Wabtec's strong financial position and market performance indicate that it is well-positioned to capitalize on future opportunities, despite the recent insider sale.
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