BorgWarner Inc. (BWA) Rating Lowered to Neutral at Goldman Sachs Group Inc.
BorgWarner Inc. (NYSE:BWA) was downgraded by equities researchers at Goldman Sachs Group Inc. from a “buy” rating to a “neutral” rating in a research note issued to investors on Thursday. They currently have a $35.00 price objective on the stock, down from their prior price objective of $37.00. Goldman Sachs Group Inc.’s target price suggests a potential downside of 1.93% from the company’s current price.
The analysts wrote, “Overall we still remain positive on the company’s ability to grow content per vehicle (CPV) and see solid mid-single digit top line growth, but we believe shares are reflecting this growth path as they are trading in line with our updated 6-month price target,” analyst David Tamberrino wrote in a note.Even in the late U.S. auto cycle, the analyst is confident that BorgWarner should be able to raise its CPV for internal combustion engine and hybrid powertrains. On the other hand, Tamberrino sees the company’s electric powertrain CPV to normalize in the wake of as ICE and hybrids.Related Link: Goldman Downgrades Lear Corporation To Sell Amid Elevated Expectations”Even so, the company remains exposed to secular growth in the industry from the synchronized tightening of fuel efficiency standards globally that is driving increased penetration rates of its core products,”
A number of other brokerages have also weighed in on BWA. Robert W. Baird restated an “outperform” rating and set a $46.00 price target on shares of BorgWarner in a research note on Wednesday, September 7th. Bank of America Corp. lowered BorgWarner from a “buy” rating to a “neutral” rating in a research report on Tuesday, June 21st. Seaport Global Securities began coverage on BorgWarner in a research report on Tuesday, August 9th. They issued a “neutral” rating on the stock. Zacks Investment Research upgraded BorgWarner from a “sell” rating to a “hold” rating in a research report on Monday, August 1st. Finally, Buckingham Research began coverage on BorgWarner in a research report on Tuesday, August 2nd. They issued a “neutral” rating and a $33.00 target price on the stock. Two research analysts have rated the stock with a sell rating, twelve have issued a hold rating and five have assigned a buy rating to the company’s stock. BorgWarner has an average rating of “Hold” and a consensus target price of $41.36.
Shares of BorgWarner (NYSE:BWA) opened at 35.69 on Thursday. The stock has a market capitalization of $7.65 billion, a price-to-earnings ratio of 12.91 and a beta of 1.93. The firm’s 50-day moving average is $34.79 and its 200-day moving average is $34.16. BorgWarner has a one year low of $27.52 and a one year high of $48.64.
BorgWarner (NYSE:BWA) last issued its quarterly earnings results on Thursday, July 28th. The company reported $0.84 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.82 by $0.02. BorgWarner had a return on equity of 18.50% and a net margin of 7.10%. The business had revenue of $2.33 billion for the quarter, compared to analyst estimates of $2.33 billion. During the same quarter in the previous year, the firm earned $0.75 earnings per share. The company’s revenue was up 14.6% on a year-over-year basis. Equities research analysts forecast that BorgWarner will post $3.25 EPS for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 15th. Investors of record on Thursday, September 1st were paid a $0.13 dividend. This represents a $0.52 annualized dividend and a yield of 1.46%. The ex-dividend date of this dividend was Tuesday, August 30th. BorgWarner’s dividend payout ratio is currently 18.77%.
In related news, VP Thomas J. Mcgill sold 5,000 shares of the stock in a transaction on Tuesday, August 2nd. The stock was sold at an average price of $31.83, for a total value of $159,150.00. Following the completion of the transaction, the vice president now directly owns 31,061 shares of the company’s stock, valued at approximately $988,671.63. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, VP Brady D. Ericson sold 16,240 shares of the stock in a transaction on Tuesday, August 9th. The shares were sold at an average price of $33.77, for a total value of $548,424.80. Following the completion of the transaction, the vice president now directly owns 70,156 shares of the company’s stock, valued at $2,369,168.12. The disclosure for this sale can be found here. 0.65% of the stock is owned by corporate insiders.
A number of hedge funds and other institutional investors have recently bought and sold shares of BWA. Mizuho Asset Management Co. Ltd. increased its position in BorgWarner by 106.2% in the second quarter. Mizuho Asset Management Co. Ltd. now owns 3,567 shares of the company’s stock valued at $105,000 after buying an additional 1,837 shares in the last quarter. River & Mercantile Asset Management LLP boosted its stake in shares of BorgWarner by 166.7% in the second quarter. River & Mercantile Asset Management LLP now owns 4,000 shares of the company’s stock valued at $118,000 after buying an additional 2,500 shares during the last quarter. Pacer Advisors Inc. boosted its stake in shares of BorgWarner by 7.2% in the second quarter. Pacer Advisors Inc. now owns 4,021 shares of the company’s stock valued at $119,000 after buying an additional 271 shares during the last quarter. Washington Trust Bank boosted its stake in shares of BorgWarner by 1.4% in the second quarter. Washington Trust Bank now owns 4,054 shares of the company’s stock valued at $120,000 after buying an additional 54 shares during the last quarter. Finally, Seven Eight Capital LLC bought a new stake in shares of BorgWarner during the second quarter valued at about $121,000. 88.29% of the stock is owned by hedge funds and other institutional investors.
BorgWarner Inc is a supplier of engineered automotive systems and components for powertrain applications. The Company operates through two segments: Engine and Drivetrain. The Engine segment’s products include turbochargers, timing devices and chains, emissions systems and thermal systems. The Drivetrain segment’s products include transmission components and systems, all-wheel drive (AWD) torque transfer systems and rotating electrical devices.
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