Evercore ISI Forecasts Strong Price Appreciation for BorgWarner (NYSE:BWA) Stock

BorgWarner (NYSE:BWA) had its price target hoisted by stock analysts at Evercore ISI from $38.00 to $42.00 in a research note issued on Monday,Benzinga reports. The brokerage currently has an “outperform” rating on the auto parts company’s stock. Evercore ISI’s target price indicates a potential upside of 11.03% from the stock’s previous close.

A number of other research analysts have also weighed in on the company. Robert W. Baird increased their price target on BorgWarner from $32.00 to $39.00 and gave the stock a “neutral” rating in a research note on Friday, July 11th. The Goldman Sachs Group upgraded BorgWarner from a “neutral” rating to a “buy” rating and upped their target price for the company from $31.00 to $34.00 in a research note on Thursday, April 10th. Wall Street Zen raised BorgWarner from a “buy” rating to a “strong-buy” rating in a research note on Saturday, July 12th. Barclays reaffirmed an “overweight” rating and set a $45.00 price objective (up previously from $42.00) on shares of BorgWarner in a research note on Wednesday, July 16th. Finally, Wells Fargo & Company increased their price objective on shares of BorgWarner from $45.00 to $46.00 and gave the stock an “overweight” rating in a report on Friday, August 1st. Six analysts have rated the stock with a hold rating, ten have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $39.50.

BorgWarner Trading Down 1.2%

BorgWarner stock opened at $37.83 on Monday. The stock has a 50-day moving average price of $34.45 and a 200 day moving average price of $31.30. BorgWarner has a 52 week low of $24.40 and a 52 week high of $38.50. The stock has a market cap of $8.19 billion, a PE ratio of 40.24, a P/E/G ratio of 1.14 and a beta of 1.10. The company has a current ratio of 2.02, a quick ratio of 1.66 and a debt-to-equity ratio of 0.64.

BorgWarner (NYSE:BWA) last released its quarterly earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.06 by $0.15. The company had revenue of $3.64 billion for the quarter, compared to analysts’ expectations of $3.56 billion. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. The firm’s revenue for the quarter was up 1.0% compared to the same quarter last year. During the same period last year, the company earned $1.19 EPS. Equities research analysts predict that BorgWarner will post 4.28 earnings per share for the current fiscal year.

BorgWarner announced that its board has initiated a share repurchase plan on Thursday, July 31st that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the auto parts company to buy up to 13.2% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s board believes its shares are undervalued.

Insider Activity

In other news, VP Isabelle Mckenzie sold 5,000 shares of the company’s stock in a transaction on Friday, May 16th. The shares were sold at an average price of $33.25, for a total value of $166,250.00. Following the completion of the transaction, the vice president directly owned 63,445 shares in the company, valued at approximately $2,109,546.25. This represents a 7.31% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Tonit M. Calaway sold 27,736 shares of the firm’s stock in a transaction on Monday, May 12th. The shares were sold at an average price of $32.83, for a total transaction of $910,572.88. Following the sale, the executive vice president directly owned 214,521 shares of the company’s stock, valued at approximately $7,042,724.43. The trade was a 11.45% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 0.63% of the company’s stock.

Institutional Trading of BorgWarner

Several large investors have recently modified their holdings of the business. Bank of New York Mellon Corp boosted its holdings in BorgWarner by 0.9% in the second quarter. Bank of New York Mellon Corp now owns 1,892,232 shares of the auto parts company’s stock valued at $63,352,000 after purchasing an additional 17,071 shares during the last quarter. South Dakota Investment Council boosted its stake in shares of BorgWarner by 198.6% during the 2nd quarter. South Dakota Investment Council now owns 61,318 shares of the auto parts company’s stock valued at $2,053,000 after buying an additional 40,781 shares during the last quarter. Cambiar Investors LLC acquired a new stake in shares of BorgWarner during the second quarter worth approximately $9,986,000. GAM Holding AG grew its position in shares of BorgWarner by 19.3% during the second quarter. GAM Holding AG now owns 49,306 shares of the auto parts company’s stock worth $1,651,000 after buying an additional 7,982 shares in the last quarter. Finally, AMG National Trust Bank increased its stake in shares of BorgWarner by 0.9% in the second quarter. AMG National Trust Bank now owns 50,699 shares of the auto parts company’s stock worth $1,697,000 after buying an additional 453 shares during the last quarter. 95.67% of the stock is currently owned by institutional investors and hedge funds.

About BorgWarner

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.