BorgWarner (NYSE:BWA) Raised to Buy at StockNews.com

StockNews.com upgraded shares of BorgWarner (NYSE:BWA) from a hold rating to a buy rating in a research note published on Monday morning.

Other analysts have also recently issued reports about the stock. Oppenheimer lifted their target price 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 increased their target price on BorgWarner from $36.00 to $40.00 and gave the stock a buy rating in a research report on Friday, May 3rd. 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 report on Friday, February 9th. Barclays increased their price objective on shares of BorgWarner from $44.00 to $45.00 and gave the stock an overweight rating in a report on Monday. Finally, Piper Sandler assumed coverage on shares of BorgWarner in a report on Friday, March 15th. They issued an overweight rating and a $43.00 target price for the company. Seven research analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of Moderate Buy and an average price target of $43.76.

BorgWarner Price Performance

Shares of NYSE:BWA opened at $37.52 on Monday. BorgWarner has a one year low of $29.51 and a one year high of $50.04. The stock has a market cap of $8.55 billion, a PE ratio of 14.21, a price-to-earnings-growth ratio of 1.08 and a beta of 1.30. The business’s fifty day moving average price is $33.49 and its two-hundred day moving average price is $33.70. 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 (NYSE:BWA) last posted its quarterly earnings data on Thursday, May 2nd. The auto parts company reported $1.03 EPS for the quarter, beating analysts’ consensus estimates of $0.87 by $0.16. The business had revenue of $3.60 billion for the quarter, compared to analyst estimates of $3.51 billion. BorgWarner had a return on equity of 15.33% and a net margin of 4.02%. The business’s revenue for the quarter was up 6.3% compared to the same quarter last year. During the same quarter last year, the company earned $1.09 earnings per share. On average, analysts forecast that BorgWarner will post 3.94 EPS for the current fiscal year.

BorgWarner announced that its Board of Directors has authorized a share repurchase plan on Thursday, May 2nd that allows the company to buyback $500.00 million in shares. This buyback authorization allows the auto parts company to reacquire up to 6% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s leadership believes its shares are undervalued.

BorgWarner Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, June 17th. Stockholders of record on Monday, June 3rd will be given a dividend of $0.11 per share. This represents a $0.44 dividend on an annualized basis and a dividend yield of 1.17%. The ex-dividend date of this dividend is Monday, June 3rd. BorgWarner’s payout ratio is 16.67%.

Insiders Place Their Bets

In other news, CEO Frederic Lissalde sold 225,900 shares of the firm’s stock in a transaction that occurred 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 completion of the sale, the chief executive officer now owns 455,227 shares of the company’s stock, valued at $14,148,455.16. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. In other news, CEO Frederic Lissalde sold 225,900 shares of the company’s stock in a transaction dated Wednesday, February 14th. The shares were sold at an average price of $31.08, for a total value of $7,020,972.00. Following the sale, 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 document filed with the SEC, which is accessible through the SEC website. Also, CAO Tonit M. Calaway sold 35,603 shares of BorgWarner stock in a transaction dated Monday, February 12th. The stock was sold at an average price of $32.15, for a total value of $1,144,636.45. Following the completion of the transaction, the chief accounting officer now owns 83,348 shares of the company’s stock, valued at $2,679,638.20. The disclosure for this sale can be found here. Insiders have sold 287,503 shares of company stock worth $9,015,478 in the last three months. 0.45% of the stock is owned by insiders.

Institutional Trading of BorgWarner

Institutional investors have recently added to or reduced their stakes in the business. Parkside Investments LLC boosted its holdings in shares of BorgWarner by 28.7% in the 4th quarter. Parkside Investments LLC now owns 196,889 shares of the auto parts company’s stock valued at $7,058,000 after buying an additional 43,955 shares during the period. Sumitomo Mitsui Trust Holdings Inc. lifted its holdings in BorgWarner by 9.4% in the fourth quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 699,974 shares of the auto parts company’s stock worth $25,094,000 after acquiring an additional 59,925 shares during the last quarter. Kennedy Capital Management LLC acquired a new position in BorgWarner in the third quarter valued at approximately $833,000. Illinois Municipal Retirement Fund grew its holdings in shares of BorgWarner by 84.3% during the fourth quarter. Illinois Municipal Retirement Fund now owns 260,556 shares of the auto parts company’s stock valued at $9,341,000 after purchasing an additional 119,170 shares during the last quarter. Finally, O Shaughnessy Asset Management LLC raised its position in shares of BorgWarner by 24.8% during the 3rd quarter. O Shaughnessy Asset Management LLC now owns 180,942 shares of the auto parts company’s stock worth $7,305,000 after purchasing an additional 35,986 shares during the period. Institutional investors own 95.67% of the company’s stock.

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.