BorgWarner (NYSE:BWA) Cut to Hold at Zacks Research

Zacks Research cut shares of BorgWarner (NYSE:BWA) from a strong-buy rating to a hold rating in a research note published on Monday,Zacks.com reports.

BWA has been the subject of a number of other research reports. Barclays raised their price objective on shares of BorgWarner from $45.00 to $55.00 and gave the company an “overweight” rating in a report on Friday, October 10th. JPMorgan Chase & Co. raised their price target on shares of BorgWarner from $43.00 to $45.00 and gave the stock an “overweight” rating in a report on Monday, August 4th. Robert W. Baird raised shares of BorgWarner from a “neutral” rating to an “outperform” rating and raised their price objective for the stock from $41.00 to $52.00 in a research report on Wednesday, September 3rd. Wall Street Zen raised shares of BorgWarner from a “buy” rating to a “strong-buy” rating in a research report on Saturday, July 12th. Finally, Bank of America downgraded shares of BorgWarner from a “buy” rating to a “neutral” rating and raised their price objective for the stock from $41.00 to $46.00 in a research report on Wednesday, September 10th. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and seven have given a Hold rating to the company’s stock. According to data from MarketBeat, BorgWarner presently has an average rating of “Moderate Buy” and a consensus price target of $44.64.

BorgWarner Stock Up 1.2%

Shares of NYSE BWA opened at $42.27 on Monday. The company has a 50 day simple moving average of $42.79 and a 200 day simple moving average of $35.72. The firm has a market cap of $9.15 billion, a PE ratio of 44.97, a price-to-earnings-growth ratio of 1.54 and a beta of 1.09. BorgWarner has a 1 year low of $24.40 and a 1 year high of $44.97. The company has a debt-to-equity ratio of 0.64, a current ratio of 2.02 and a quick ratio of 1.66.

BorgWarner (NYSE:BWA) last issued its quarterly earnings data on Thursday, July 31st. The auto parts company reported $1.21 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.06 by $0.15. The business had revenue of $3.64 billion during the quarter, compared to analyst estimates of $3.56 billion. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. The firm’s quarterly revenue was up 1.0% on a year-over-year basis. During the same quarter last year, the business earned $1.19 EPS. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. On average, research analysts forecast that BorgWarner will post 4.28 EPS for the current year.

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

BorgWarner Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, September 15th. Investors of record on Tuesday, September 2nd were given a $0.17 dividend. This represents a $0.68 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend was Tuesday, September 2nd. This is an increase from BorgWarner’s previous quarterly dividend of $0.11. BorgWarner’s payout ratio is 72.34%.

Insider Activity at BorgWarner

In related news, Director Alexis P. Michas sold 8,772 shares of BorgWarner stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $42.31, for a total value of $371,143.32. Following the completion of the sale, the director owned 78,903 shares of the company’s stock, valued at approximately $3,338,385.93. This trade represents a 10.01% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, VP Isabelle Mckenzie sold 2,500 shares of BorgWarner stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $40.01, for a total transaction of $100,025.00. Following the completion of the sale, the vice president directly owned 55,945 shares of the company’s stock, valued at approximately $2,238,359.45. The trade was a 4.28% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 31,272 shares of company stock valued at $1,263,318. 0.45% of the stock is owned by company insiders.

Hedge Funds Weigh In On BorgWarner

A number of hedge funds have recently bought and sold shares of the company. Dimensional Fund Advisors LP boosted its holdings in BorgWarner by 2.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 11,568,627 shares of the auto parts company’s stock worth $331,429,000 after acquiring an additional 284,587 shares during the last quarter. State Street Corp boosted its holdings in BorgWarner by 5.3% during the 2nd quarter. State Street Corp now owns 7,633,760 shares of the auto parts company’s stock worth $255,578,000 after acquiring an additional 380,942 shares during the last quarter. LSV Asset Management boosted its holdings in BorgWarner by 36.7% during the 1st quarter. LSV Asset Management now owns 5,889,080 shares of the auto parts company’s stock worth $168,722,000 after acquiring an additional 1,580,935 shares during the last quarter. American Century Companies Inc. boosted its holdings in BorgWarner by 1.6% during the 2nd quarter. American Century Companies Inc. now owns 3,774,828 shares of the auto parts company’s stock worth $126,381,000 after acquiring an additional 58,252 shares during the last quarter. Finally, AQR Capital Management LLC boosted its holdings in BorgWarner by 307.1% during the 2nd quarter. AQR Capital Management LLC now owns 3,422,874 shares of the auto parts company’s stock worth $114,153,000 after acquiring an additional 2,582,105 shares during the last quarter. 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.