BorgWarner Inc. (BWA) Downgraded by Zacks Investment Research
Zacks Investment Research cut shares of BorgWarner Inc. (NYSE:BWA) from a buy rating to a hold rating in a research note issued to investors on Wednesday morning.
According to Zacks, “BorgWarner expects to benefit from high organic net sales growth 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 flow help the company to return capital to its shareholders’ and undertake acquisitions. However, its inability to pass on any rise in raw materials to original equipment manufacturer’s, is adversely impacting its profit. Moreover, foreign currency fluctuations and business divestitures are other headwinds BorgWarner has been facing. Also year-to-date, its share has underperformed the industry it belongs to.”
Several other research firms have also commented on BWA. BMO Capital Markets reissued an outperform rating and set a $55.00 price target (up from $50.00) on shares of BorgWarner in a research report on Friday, July 28th. Barclays PLC set a $46.00 price target on shares of BorgWarner and gave the company a hold rating in a research report on Sunday, August 6th. ValuEngine lowered shares of BorgWarner from a strong-buy rating to a buy rating in a research report on Friday, September 1st. Deutsche Bank AG increased their price target on shares of BorgWarner from $54.00 to $55.00 and gave the company a buy rating in a research report on Tuesday, August 8th. Finally, Robert W. Baird reissued a buy rating and set a $55.00 price target on shares of BorgWarner in a research report on Friday, September 1st. Three analysts have rated the stock with a sell rating, eight have issued a hold rating and seven have assigned a buy rating to the company. BorgWarner presently has a consensus rating of Hold and an average target price of $44.00.
Shares of BorgWarner (BWA) opened at 48.76 on Wednesday. The stock has a 50 day moving average of $45.87 and a 200 day moving average of $43.06. BorgWarner has a 52-week low of $33.09 and a 52-week high of $49.00. The stock has a market capitalization of $10.29 billion, a PE ratio of 54.36 and a beta of 1.73.
BorgWarner (NYSE:BWA) last released its quarterly earnings data on Thursday, July 27th. The auto parts company reported $0.96 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.89 by $0.07. BorgWarner had a net margin of 2.06% and a return on equity of 20.75%. The company had revenue of $2.39 billion during the quarter, compared to analyst estimates of $2.27 billion. During the same period in the prior year, the firm earned $0.84 earnings per share. The firm’s revenue for the quarter was up 2.5% compared to the same quarter last year. Analysts forecast that BorgWarner will post $3.70 earnings per share for the current year.
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The firm also recently declared a quarterly dividend, which was paid on Friday, September 15th. Investors of record on Friday, September 1st were issued a $0.14 dividend. The ex-dividend date of this dividend was Wednesday, August 30th. This represents a $0.56 annualized dividend and a yield of 1.15%. BorgWarner’s dividend payout ratio (DPR) is presently 62.92%.
In related news, EVP Tonit M. Calaway sold 3,000 shares of the stock in a transaction that occurred on Tuesday, August 22nd. The shares were sold at an average price of $44.99, for a total value of $134,970.00. Following the transaction, the executive vice president now owns 34,120 shares in the company, valued at approximately $1,535,058.80. The sale was disclosed in a filing with the SEC, which is available through this link. Also, insider Brady D. Ericson sold 11,052 shares of the stock in a transaction that occurred on Wednesday, August 16th. The stock was sold at an average price of $45.38, for a total transaction of $501,539.76. Following the completion of the transaction, the insider now owns 23,418 shares in the company, valued at approximately $1,062,708.84. The disclosure for this sale can be found here. 0.66% of the stock is currently owned by corporate insiders.
Large investors have recently modified their holdings of the stock. Harel Insurance Investments & Financial Services Ltd. acquired a new position in BorgWarner in the 1st quarter worth approximately $105,000. Van ECK Associates Corp increased its holdings in BorgWarner by 6.8% in the 1st 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. CENTRAL TRUST Co increased its holdings in BorgWarner by 5.3% in the 2nd 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. SRS Capital Advisors Inc. increased its holdings in BorgWarner by 13.7% in the 1st 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, Exane Derivatives acquired a new position in BorgWarner in the 2nd quarter worth approximately $135,000. Institutional investors own 91.11% 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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