Zacks Investment Research Upgrades BorgWarner Inc. (BWA) to “Hold”
Zacks Investment Research upgraded shares of BorgWarner Inc. (NYSE:BWA) from a sell rating to a hold rating in a research report report published on Tuesday morning.
According to Zacks, “High organic net sales growth expectations are likely to aid BorgWarner going forward. Huge business opportunities in Asia, the Americas and Europe in the next three years are anticipated to contribute to a major portion of growth. Also, a healthy balance sheet and ample cash flows help the company return capital to shareholders and undertake acquisitions. Moreover, BorgWarner is poised to benefit from its expansion strategy. BorgWarner has outperformed the Zacks categorized Auto/Truck Original Equipment industry in the last three months. However, the company is facing foreign currency headwinds and pressure from original equipment manufacturers (OEM) to reduce prices, which might pose a threat to the company. Due to foreign currency fluctuations it might face a negative impact of upto $310 million in fiscal 2017.”
BWA has been the subject of a number of other reports. CLSA began coverage on shares of BorgWarner in a report on Thursday, June 22nd. They issued a hold rating and a $45.00 price target for the company. Deutsche Bank AG raised shares of BorgWarner from a hold rating to a buy rating and increased their price target for the company from $41.00 to $51.00 in a report on Wednesday, March 22nd. Royal Bank Of Canada reissued a hold rating and issued a $44.00 price target on shares of BorgWarner in a report on Wednesday, July 12th. BidaskClub downgraded shares of BorgWarner from a strong-buy rating to a buy rating in a report on Wednesday, June 21st. Finally, Bank of America Corporation reissued an underperform rating and issued a $27.00 price target (down from $30.00) on shares of BorgWarner in a report on Friday, June 16th. Three equities research analysts have rated the stock with a sell rating, eleven have given a hold rating, five have given a buy rating and one has assigned a strong buy rating to the stock. BorgWarner currently has a consensus rating of Hold and a consensus price target of $41.25.
Shares of BorgWarner (NYSE BWA) opened at 46.29 on Tuesday. BorgWarner has a 52-week low of $31.49 and a 52-week high of $47.00. The company has a market cap of $9.82 billion, a P/E ratio of 68.88 and a beta of 1.72. The stock has a 50 day moving average of $43.47 and a 200 day moving average of $41.65.
BorgWarner (NYSE:BWA) last issued its quarterly earnings results on Thursday, April 27th. The auto parts company reported $0.91 earnings per share for the quarter, beating analysts’ consensus estimates of $0.84 by $0.07. BorgWarner had a net margin of 1.56% and a return on equity of 20.10%. The firm had revenue of $2.41 billion during the quarter, compared to the consensus estimate of $2.26 billion. During the same period in the prior year, the firm earned $0.80 EPS. The business’s revenue was up 6.1% on a year-over-year basis. On average, equities analysts anticipate that BorgWarner will post $3.58 earnings per share for the current fiscal year.
In related news, Director Dennis C. Cuneo sold 1,000 shares of the stock in a transaction dated Tuesday, June 13th. The shares were sold at an average price of $44.06, for a total transaction of $44,060.00. Following the completion of the sale, the director now owns 13,398 shares in the company, valued at approximately $590,315.88. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Ronald T. Hundzinski sold 3,776 shares of the stock in a transaction dated Friday, May 5th. The stock was sold at an average price of $41.53, for a total transaction of $156,817.28. Following the sale, the insider now owns 141,958 shares of the company’s stock, valued at approximately $5,895,515.74. The disclosure for this sale can be found here. Company insiders own 0.66% of the company’s stock.
Large investors have recently made changes to their positions in the company. CENTRAL TRUST Co boosted its stake in shares of BorgWarner by 5.3% in the second quarter. CENTRAL TRUST Co now owns 2,679 shares of the auto parts company’s stock worth $114,000 after buying an additional 135 shares during the period. Van ECK Associates Corp boosted its stake in shares of BorgWarner by 6.8% in the first quarter. Van ECK Associates Corp now owns 2,702 shares of the auto parts company’s stock worth $113,000 after buying an additional 171 shares during the period. Harel Insurance Investments & Financial Services Ltd. purchased a new stake in shares of BorgWarner during the first quarter worth about $105,000. SRS Capital Advisors Inc. boosted its stake in shares of BorgWarner by 13.7% in the first quarter. SRS Capital Advisors Inc. now owns 2,929 shares of the auto parts company’s stock worth $122,000 after buying an additional 354 shares during the period. Finally, Whittier Trust Co. boosted its stake in shares of BorgWarner by 6.4% in the first quarter. Whittier Trust Co. now owns 3,165 shares of the auto parts company’s stock worth $132,000 after buying an additional 189 shares during the period. Institutional investors and hedge funds own 91.95% of the company’s stock.
BorgWarner Company Profile
BorgWarner Inc is engaged in providing technology solutions for combustion, hybrid and electric vehicles. The Company’s segments include Engine and Drivetrain. The Engine segment’s products include turbochargers, timing devices and chains, emissions systems and thermal systems. The Engine segment develops and manufactures products for gasoline and diesel engines, and alternative powertrains.
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