BorgWarner (NYSE:BWA) Reaches New 52-Week Low on Disappointing Earnings

Shares of BorgWarner Inc. (NYSE:BWAGet Free Report) reached a new 52-week low on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $31.26 and last traded at $31.58, with a volume of 644961 shares changing hands. The stock had previously closed at $33.83.

The auto parts company reported $0.90 EPS for the quarter, missing analysts’ consensus estimates of $0.93 by ($0.03). BorgWarner had a net margin of 4.42% and a return on equity of 15.15%. The firm had revenue of $3.52 billion for the quarter, compared to analysts’ expectations of $3.62 billion. During the same quarter in the previous year, the company earned $1.26 EPS. The company’s quarterly revenue was up 6.2% compared to the same quarter last year.

BorgWarner Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, March 15th. Investors of record on Friday, March 1st will be issued a $0.11 dividend. This represents a $0.44 annualized dividend and a yield of 1.38%. The ex-dividend date of this dividend is Thursday, February 29th. BorgWarner’s dividend payout ratio is currently 14.19%.

Analyst Ratings Changes

BWA has been the topic of several recent research reports. The Goldman Sachs Group decreased their price target on shares of BorgWarner from $38.00 to $34.00 and set a “neutral” rating on the stock in a research report on Friday. StockNews.com downgraded shares of BorgWarner from a “buy” rating to a “hold” rating in a research report on Friday. Robert W. Baird downgraded shares of BorgWarner from an “outperform” rating to a “neutral” rating and decreased their price objective for the company from $45.00 to $39.00 in a research report on Wednesday, January 3rd. Morgan Stanley reduced their price target on shares of BorgWarner from $47.00 to $45.00 and set an “overweight” rating on the stock in a report on Tuesday, November 14th. Finally, Wells Fargo & Company reduced their price target on shares of BorgWarner from $47.00 to $43.00 and set an “overweight” rating on the stock in a report on Friday. Seven investment analysts have rated the stock with a hold rating and eight have given a buy rating to the stock. Based on data from MarketBeat, BorgWarner currently has a consensus rating of “Moderate Buy” and an average target price of $44.98.

Check Out Our Latest Analysis on BWA

Hedge Funds Weigh In On BorgWarner

A number of large investors have recently made changes to their positions in BWA. Massmutual Trust Co. FSB ADV lifted its holdings in BorgWarner by 2.8% during the 2nd quarter. Massmutual Trust Co. FSB ADV now owns 8,231 shares of the auto parts company’s stock valued at $403,000 after buying an additional 221 shares in the last quarter. Kentucky Retirement Systems Insurance Trust Fund lifted its holdings in BorgWarner by 3.7% during the 3rd quarter. Kentucky Retirement Systems Insurance Trust Fund now owns 8,487 shares of the auto parts company’s stock valued at $266,000 after buying an additional 302 shares in the last quarter. First Horizon Advisors Inc. lifted its holdings in BorgWarner by 7.5% during the 1st quarter. First Horizon Advisors Inc. now owns 4,440 shares of the auto parts company’s stock valued at $218,000 after buying an additional 308 shares in the last quarter. Parallel Advisors LLC lifted its holdings in BorgWarner by 10.0% during the 2nd quarter. Parallel Advisors LLC now owns 3,538 shares of the auto parts company’s stock valued at $173,000 after buying an additional 323 shares in the last quarter. Finally, Raymond James Trust N.A. lifted its holdings in BorgWarner by 3.8% during the 2nd quarter. Raymond James Trust N.A. now owns 8,812 shares of the auto parts company’s stock valued at $431,000 after buying an additional 324 shares in the last quarter. 92.35% of the stock is owned by hedge funds and other institutional investors.

BorgWarner Stock Performance

The company has a debt-to-equity ratio of 0.61, a quick ratio of 1.28 and a current ratio of 1.65. The firm has a market cap of $7.47 billion, a P/E ratio of 10.26, a price-to-earnings-growth ratio of 0.91 and a beta of 1.32. The firm’s fifty day moving average price is $34.11 and its 200 day moving average price is $37.22.

About BorgWarner

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BorgWarner Inc 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, canisters, cabin heaters, battery modules and systems, battery packs, battery heaters, and battery charging.

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