Sell Alert: Pascal Schweitzer Cashes Out $843K In Westinghouse Air Brake Stock

Pascal Schweitzer, President Transit at Westinghouse Air Brake WAB, disclosed an insider sell on March 13, according to a recent SEC filing.

What Happened: After conducting a thorough analysis, Schweitzer sold 6,000 shares of Westinghouse Air Brake. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total transaction value is $843,646.

As of Wednesday morning, Westinghouse Air Brake shares are down by 0.0%, currently priced at $143.08.

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 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.

Key Indicators: Westinghouse Air Brake's Financial Health

Positive Revenue Trend: Examining Westinghouse Air Brake's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 9.54% as of 31 December, 2023, showcasing a substantial increase in 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: 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.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 31.58 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: The current P/S ratio of 2.65 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): Boasting an EV/EBITDA ratio of 16.1, Westinghouse Air Brake demonstrates a robust market valuation, outperforming industry benchmarks.

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

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The Relevance of Insider Transactions

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Transaction Codes To Focus On

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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.