BorgWarner Inc. (NYSE:BWA) Given Consensus Rating of “Moderate Buy” by Brokerages

BorgWarner Inc. (NYSE:BWA) has earned an average rating of “Moderate Buy” from the seventeen research firms that are currently covering the firm, Marketbeat Ratings reports. Seven investment analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company. The average 1-year target price among brokerages that have issued a report on the stock in the last year is $43.76.

Several equities research analysts recently commented on the stock. Oppenheimer boosted their price objective on shares of BorgWarner from $39.00 to $40.00 and gave the stock an “outperform” rating in a research note on Friday, May 3rd. TD Cowen raised their price objective on BorgWarner from $36.00 to $40.00 and gave the company a “buy” rating in a research report on Friday, May 3rd. BNP Paribas downgraded BorgWarner from an “outperform” rating to a “neutral” rating and dropped their target price for the stock from $43.00 to $35.00 in a report on Tuesday, February 20th. Robert W. Baird increased their target price on BorgWarner from $36.00 to $40.00 and gave the stock a “neutral” rating in a research note on Friday, May 3rd. Finally, The Goldman Sachs Group lowered their price target on BorgWarner from $38.00 to $34.00 and set a “neutral” rating for the company in a research report on Friday, February 9th.

BorgWarner Stock Down 0.4 %

Shares of NYSE:BWA opened at $36.80 on Wednesday. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.20 and a current ratio of 1.54. BorgWarner has a 52-week low of $29.51 and a 52-week high of $50.04. The firm has a market capitalization of $8.38 billion, a P/E ratio of 13.94, a P/E/G ratio of 1.08 and a beta of 1.30. The stock has a 50 day moving average price of $33.35 and a 200-day moving average price of $33.67.

BorgWarner (NYSE:BWA) last posted its quarterly earnings data on Thursday, May 2nd. The auto parts company reported $1.03 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.87 by $0.16. BorgWarner had a return on equity of 15.33% and a net margin of 4.02%. The business had revenue of $3.60 billion during the quarter, compared to the consensus estimate of $3.51 billion. During the same quarter in the prior year, the company earned $1.09 earnings per share. The firm’s quarterly revenue was up 6.3% compared to the same quarter last year. As a group, equities research analysts anticipate that BorgWarner will post 3.94 EPS for the current fiscal year.

BorgWarner Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, June 17th. Stockholders of record on Monday, June 3rd will be issued a dividend of $0.11 per share. The ex-dividend date is Monday, June 3rd. This represents a $0.44 annualized dividend and a dividend yield of 1.20%. BorgWarner’s payout ratio is 16.67%.

BorgWarner announced that its Board of Directors has approved a stock buyback program on Thursday, May 2nd that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the auto parts company to reacquire up to 6% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company’s board of directors believes its stock is undervalued.

Insider Activity at BorgWarner

In other BorgWarner news, CEO Frederic Lissalde sold 225,900 shares of the business’s stock in a transaction dated Wednesday, February 14th. The stock was sold at an average price of $31.08, for a total transaction of $7,020,972.00. Following the completion of the sale, the chief executive officer now directly owns 455,227 shares in the company, valued at approximately $14,148,455.16. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. In other news, CEO Frederic Lissalde sold 225,900 shares of BorgWarner stock in a transaction on Wednesday, February 14th. The shares were sold at an average price of $31.08, for a total transaction of $7,020,972.00. Following the transaction, the chief executive officer now owns 455,227 shares in the company, valued at approximately $14,148,455.16. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Stefan Demmerle sold 3,000 shares of the company’s stock in a transaction on Wednesday, March 13th. The stock was sold at an average price of $33.00, for a total value of $99,000.00. Following the completion of the sale, the vice president now owns 249,013 shares of the company’s stock, valued at $8,217,429. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 287,503 shares of company stock worth $9,015,478. 0.63% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Norges Bank bought a new position in shares of BorgWarner in the fourth quarter worth approximately $75,489,000. Boston Partners increased its stake in BorgWarner by 58.9% in the 3rd quarter. Boston Partners now owns 5,267,500 shares of the auto parts company’s stock worth $211,762,000 after buying an additional 1,951,783 shares in the last quarter. Invesco Ltd. raised its holdings in BorgWarner by 30.4% during the third quarter. Invesco Ltd. now owns 4,399,084 shares of the auto parts company’s stock valued at $177,591,000 after acquiring an additional 1,024,361 shares during the period. Victory Capital Management Inc. lifted its position in shares of BorgWarner by 10.9% in the fourth quarter. Victory Capital Management Inc. now owns 9,668,438 shares of the auto parts company’s stock valued at $346,614,000 after acquiring an additional 948,659 shares in the last quarter. Finally, Ninety One UK Ltd boosted its stake in shares of BorgWarner by 85.1% in the fourth quarter. Ninety One UK Ltd now owns 1,656,221 shares of the auto parts company’s stock worth $59,376,000 after acquiring an additional 761,250 shares during the period. 95.67% of the stock is owned by hedge funds and other institutional investors.

BorgWarner Company Profile

BorgWarner Inc, together with its subsidiaries, provides solutions for combustion, hybrid, and electric vehicles worldwide. It offers turbochargers, eBoosters, eTurbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, battery modules and systems, battery heaters, and battery charging.