Insider Selling: Rafael Santana Unloads $5.66M Of Westinghouse Air Brake Stock

Disclosed on March 14, Rafael Santana, President and CEO at Westinghouse Air Brake WAB, executed a substantial insider sell as per the latest SEC filing.

What Happened: Santana's decision to sell 40,219 shares of Westinghouse Air Brake was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the sale is $5,655,442.

Monitoring the market, Westinghouse Air Brake's shares down by 1.1% at $139.3 during Friday's morning.

Delving into Westinghouse Air Brake's Background

Westinghouse Air Brake Technologies Corp is a provider of value-added, technology-based products and services for the freight rail and passenger transit industries, and the mining, marine, and industrial markets. It provides its products and services through two main business segments, Freight and Transit. The company generates maximum revenue from the Freight segment which manufactures new and modernized locomotives, provides aftermarket parts and services to existing locomotives; provides components to new and existing freight cars; builds new commuter locomotives; supplies rail control and infrastructure products including electronics, positive train control equipment, signal design and engineering services. Geographically, it generates a majority of its revenue from the United States.

Westinghouse Air Brake's Economic Impact: An Analysis

Revenue Growth: Over the 3 months period, Westinghouse Air Brake showcased positive performance, achieving a revenue growth rate of 9.54% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Evaluating Earnings Performance:

• Gross Margin: With a high gross margin of 30.25%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Westinghouse Air Brake's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 1.2.

Debt Management: Westinghouse Air Brake's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.39.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 31.09, Westinghouse Air Brake's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 2.61 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 15.88 is above the industry average, suggesting that the market values the company more highly for each unit of EBITDA. This could be attributed to factors such as strong growth prospects or superior operational efficiency.

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

The Relevance of Insider Transactions

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

A Deep Dive into Insider Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Westinghouse Air Brake's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.