BorgWarner (NYSE:BWA) Shares Gap Up on Better-Than-Expected Earnings

BorgWarner Inc. (NYSE:BWA) shares gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $32.87, but opened at $35.49. BorgWarner shares last traded at $35.21, with a volume of 709,774 shares changing hands.

The auto parts company reported $1.03 EPS for the quarter, beating analysts’ consensus estimates of $0.87 by $0.16. BorgWarner had a return on equity of 14.69% and a net margin of 3.94%. The firm had revenue of $3.60 billion for the quarter, compared to analyst estimates of $3.51 billion. During the same quarter in the prior year, the firm earned $1.09 earnings per share. BorgWarner’s revenue for the quarter was up 6.3% on a year-over-year basis.

BorgWarner Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 17th. Stockholders of record on Monday, June 3rd will be paid a $0.11 dividend. The ex-dividend date is Monday, June 3rd. This represents a $0.44 dividend on an annualized basis and a dividend yield of 1.21%. BorgWarner’s payout ratio is currently 16.48%.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on BWA. StockNews.com lowered shares of BorgWarner from a “buy” rating to a “hold” rating in a report on Friday, February 9th. TheStreet lowered shares of BorgWarner from a “b-” rating to a “c+” rating in a research note on Thursday, February 8th. Piper Sandler began coverage on BorgWarner in a research note on Friday, March 15th. They issued an “overweight” rating and a $43.00 price target for the company. Oppenheimer upped their price target on BorgWarner from $39.00 to $40.00 and gave the stock an “outperform” rating in a report on Friday. Finally, JPMorgan Chase & Co. dropped their price objective on BorgWarner from $59.00 to $52.00 and set an “overweight” rating on the stock in a report on Thursday, January 25th. Eight equities research analysts have rated the stock with a hold rating and ten have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $43.93.

Insider Activity

In other BorgWarner news, CAO Tonit M. Calaway sold 35,603 shares of the firm’s stock in a transaction that occurred on Monday, February 12th. The shares were sold at an average price of $32.15, for a total value of $1,144,636.45. Following the transaction, the chief accounting officer now directly owns 83,348 shares of the company’s stock, valued at approximately $2,679,638.20. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. In other BorgWarner news, CAO Tonit M. Calaway sold 35,603 shares of the firm’s stock in a transaction on Monday, February 12th. The stock was sold at an average price of $32.15, for a total value of $1,144,636.45. Following the completion of the sale, the chief accounting officer now directly owns 83,348 shares of the company’s stock, valued at approximately $2,679,638.20. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Stefan Demmerle sold 3,000 shares of the business’s stock in a transaction dated Wednesday, March 13th. The shares were sold at an average price of $33.00, for a total transaction of $99,000.00. Following the transaction, the vice president now directly owns 249,013 shares in the company, valued at approximately $8,217,429. The disclosure for this sale can be found here. Insiders sold 287,503 shares of company stock worth $9,015,478 over the last three months. Insiders own 0.45% of the company’s stock.

Institutional Trading of BorgWarner

A number of hedge funds and other institutional investors have recently made changes to their positions in BWA. Headlands Technologies LLC purchased a new position in BorgWarner in the third quarter worth approximately $28,000. EdgeRock Capital LLC acquired a new position in shares of BorgWarner in the 4th quarter valued at $30,000. Riverview Trust Co purchased a new position in shares of BorgWarner during the 1st quarter worth $30,000. Sound Income Strategies LLC acquired a new stake in shares of BorgWarner during the 4th quarter worth about $32,000. Finally, Bruce G. Allen Investments LLC purchased a new stake in BorgWarner in the 4th quarter valued at about $33,000. Institutional investors and hedge funds own 95.67% of the company’s stock.

BorgWarner Stock Performance

The company has a current ratio of 1.65, a quick ratio of 1.30 and a debt-to-equity ratio of 0.61. The stock has a market capitalization of $8.37 billion, a PE ratio of 13.65, a price-to-earnings-growth ratio of 0.98 and a beta of 1.30. The firm’s fifty day moving average is $33.10 and its 200-day moving average is $33.76.

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.