Sell Alert: Brian Hehir Cashes Out $742K In Westinghouse Air Brake Stock

It was reported on February 16, that Brian Hehir, Director at Westinghouse Air Brake WAB executed a significant insider sell, according to an SEC filing.

What Happened: After conducting a thorough analysis, Hehir sold 5,470 shares of Westinghouse Air Brake. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Friday. The total transaction value is $742,839.

Westinghouse Air Brake's shares are actively trading at $133.96, experiencing a down of 0.0% during Friday's morning session.

Discovering Westinghouse Air Brake: A Closer Look

Westinghouse Air Brake Technologies Corp is a provider of value-added, technology-based products and services for the rail industry. It provides its products and services through two main business segments, Freight and Transit. The company generates maximum revenue from the Freight segment.

Key Indicators: Westinghouse Air Brake's Financial Health

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. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Interpreting Earnings Metrics:

• Gross Margin: Achieving a high gross margin of 30.25%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 1.2, Westinghouse Air Brake showcases strong earnings per share.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.39.

Valuation Overview:

• Price to Earnings (P/E) Ratio: Westinghouse Air Brake's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 29.57.

• Price to Sales (P/S) Ratio: The current P/S ratio of 2.48 is above industry norms, reflecting an elevated valuation for Westinghouse Air Brake's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Westinghouse Air Brake's EV/EBITDA ratio of 15.2 exceeds industry averages, indicating a premium valuation in the market

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

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

Delving Into the Significance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

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.

Transaction Codes Worth Your Attention

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.