A large exercise of company stock options by Nalin Jain, President at Westinghouse Air Brake WAB was disclosed in a new SEC filing on April 28, as part of an insider exercise.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Monday showed that Jain, President at Westinghouse Air Brake, a company in the Industrials sector, just exercised stock options worth 2,314 shares of WAB stock with an exercise price of $80.32.
The Tuesday morning update indicates Westinghouse Air Brake shares down by 0.47%, currently priced at $182.36. At this value, Jain’s 2,314 shares are worth $236,114.
Get to Know Westinghouse Air Brake Better
Westinghouse Air Brake Technologies Corp provides 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 Financial Performance
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 4.53% as of 31 March, 2025, 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.
Interpreting Earnings Metrics:
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Gross Margin: Achieving a high gross margin of 34.48%, the company performs well in terms of cost management and profitability within its sector.
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Earnings per Share (EPS): Westinghouse Air Brake’s EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 1.88.
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.
Navigating Market Valuation:
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Price to Earnings (P/E) Ratio: Westinghouse Air Brake’s P/E ratio of 28.67 is below the industry average, suggesting the stock may be undervalued.
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Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 3.02 as compared to the industry average, the stock might be considered overvalued based on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Westinghouse Air Brake’s EV/EBITDA ratio, surpassing industry averages at 16.28, positions it with an above-average valuation in the market.
Market Capitalization Analysis: Above industry benchmarks, the company’s market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
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The Importance of Insider Transactions
In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.
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.
Deciphering Transaction Codes in Insider Filings
Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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