Insider Move: Rafael Santana Exercises Options, Realizing $7.71M At Westinghouse Air Brake

Highlighted on May 6, it was unveiled in an SEC filing that Santana, President and CEO at Westinghouse Air Brake WAB, executed a significant transaction involving the exercise of company stock options.

What Happened: Santana, President and CEO at Westinghouse Air Brake, exercised stock options for 68,833 shares of WAB stock. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The exercise price of the options was $78.55 per share.

The Tuesday morning update indicates Westinghouse Air Brake shares down by 0.11%, currently priced at $190.59. At this value, Santana's 68,833 shares are worth $7,711,657.

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.

Financial Insights: Westinghouse Air Brake

Revenue Growth: Westinghouse Air Brake displayed positive results in 3 months. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 4.53%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Industrials sector.

Profitability Metrics:

• Gross Margin: The company maintains a high gross margin of 34.48%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Westinghouse Air Brake's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average 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.

Valuation Overview:

• Price to Earnings (P/E) Ratio: Westinghouse Air Brake's P/E ratio of 29.86 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 3.15 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 16.89 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: 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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Unmasking the Significance of Insider Transactions

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

In the context of 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 outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Essential Transaction Codes Unveiled

When analyzing transactions, investors tend to focus on those in the open market, detailed 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.

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