StockNews.com Upgrades BorgWarner (NYSE:BWA) to “Buy”

StockNews.com upgraded shares of BorgWarner (NYSE:BWA) from a hold rating to a buy rating in a report issued on Monday morning.

Other equities research analysts also recently issued reports about the company. The Goldman Sachs Group lowered their target price on BorgWarner from $38.00 to $34.00 and set a neutral rating for the company in a report on Friday, February 9th. TD Cowen boosted their target price on shares of BorgWarner from $36.00 to $40.00 and gave the company a buy rating in a research report on Friday, May 3rd. BNP Paribas cut shares of BorgWarner from an outperform rating to a neutral rating and reduced their price target for the stock from $43.00 to $35.00 in a report on Tuesday, February 20th. Barclays upped their price objective on shares of BorgWarner from $44.00 to $45.00 and gave the company an overweight rating in a report on Monday. Finally, Wells Fargo & Company raised their target price on BorgWarner from $43.00 to $45.00 and gave the company an overweight rating in a research note on Friday, May 3rd. Seven investment analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of Moderate Buy and a consensus target price of $43.76.

BorgWarner Stock Performance

Shares of BWA stock opened at $37.72 on Monday. The stock has a market capitalization of $8.59 billion, a PE ratio of 14.29, a PEG ratio of 1.08 and a beta of 1.30. The business’s 50 day simple moving average is $33.62 and its 200 day simple moving average is $33.72. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.54 and a quick ratio of 1.20. BorgWarner has a one year low of $29.51 and a one year high of $50.04.

BorgWarner (NYSE:BWA) last announced its earnings results on Thursday, May 2nd. The auto parts company reported $1.03 earnings per share for the quarter, topping analysts’ consensus estimates of $0.87 by $0.16. The business had revenue of $3.60 billion during the quarter, compared to the consensus estimate of $3.51 billion. BorgWarner had a net margin of 4.02% and a return on equity of 15.33%. BorgWarner’s quarterly revenue was up 6.3% on a year-over-year basis. During the same quarter last year, the firm earned $1.09 earnings per share. As a group, research analysts forecast that BorgWarner will post 3.94 earnings per share for the current year.

BorgWarner Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, June 17th. Investors of record on Monday, June 3rd will be given a dividend of $0.11 per share. This represents a $0.44 dividend on an annualized basis and a dividend yield of 1.17%. The ex-dividend date of this dividend is Monday, June 3rd. BorgWarner’s payout ratio is currently 16.67%.

BorgWarner announced that its Board of Directors has initiated a share buyback program on Thursday, May 2nd that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the auto parts company to purchase up to 6% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s board believes its stock is undervalued.

Insider Buying and Selling at BorgWarner

In other news, CEO Frederic Lissalde sold 225,900 shares of the business’s stock in a transaction that occurred on Wednesday, February 14th. The stock was sold at an average price of $31.08, for a total value of $7,020,972.00. Following the transaction, the chief executive officer now owns 455,227 shares in the company, valued at approximately $14,148,455.16. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. In other news, VP Stefan Demmerle sold 3,000 shares of the firm’s stock in a transaction on Tuesday, March 5th. The stock was sold at an average price of $31.29, for a total transaction of $93,870.00. Following the completion of the sale, the vice president now directly owns 252,013 shares of the company’s stock, valued at approximately $7,885,486.77. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CEO Frederic Lissalde sold 225,900 shares of BorgWarner stock in a transaction on Wednesday, February 14th. The stock was sold at an average price of $31.08, for a total value of $7,020,972.00. Following the sale, the chief executive officer now owns 455,227 shares in the company, valued at $14,148,455.16. The disclosure for this sale can be found here. In the last 90 days, insiders sold 287,503 shares of company stock worth $9,015,478. Insiders own 0.45% of the company’s stock.

Institutional Trading of BorgWarner

A number of large investors have recently added to or reduced their stakes in the stock. Cambridge Investment Research Advisors Inc. raised its holdings in shares of BorgWarner by 15.2% in the 3rd quarter. Cambridge Investment Research Advisors Inc. now owns 17,583 shares of the auto parts company’s stock worth $710,000 after purchasing an additional 2,323 shares during the period. Raymond James & Associates raised its stake in shares of BorgWarner by 4.7% in the third quarter. Raymond James & Associates now owns 459,318 shares of the auto parts company’s stock valued at $18,543,000 after buying an additional 20,536 shares during the period. Raymond James Financial Services Advisors Inc. lifted its position in shares of BorgWarner by 2.1% during the 3rd quarter. Raymond James Financial Services Advisors Inc. now owns 64,887 shares of the auto parts company’s stock valued at $2,619,000 after buying an additional 1,339 shares during the last quarter. Bank of New York Mellon Corp grew its stake in shares of BorgWarner by 3.7% during the 3rd quarter. Bank of New York Mellon Corp now owns 2,166,308 shares of the auto parts company’s stock worth $87,454,000 after acquiring an additional 76,659 shares during the period. Finally, AMF Tjanstepension AB increased its holdings in BorgWarner by 1.7% in the 3rd quarter. AMF Tjanstepension AB now owns 100,930 shares of the auto parts company’s stock worth $4,075,000 after acquiring an additional 1,730 shares during the last quarter. Hedge funds and other institutional investors own 95.67% of the company’s stock.

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.