BorgWarner (NYSE:BWA) Shares Gap Up Following Strong Earnings

BorgWarner Inc. (NYSE:BWA)’s stock price gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. 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 trading hands.

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

BorgWarner Dividend Announcement

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

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on BWA shares. TD Cowen lifted their target price on BorgWarner from $36.00 to $40.00 and gave the stock a “buy” rating in a report on Friday. Oppenheimer boosted their price objective on shares of BorgWarner from $39.00 to $40.00 and gave the company an “outperform” rating in a research report on Friday. StockNews.com lowered shares of BorgWarner from a “buy” rating to a “hold” rating in a report on Friday, February 9th. Barclays upped their price target on shares of BorgWarner from $40.00 to $44.00 and gave the company an “overweight” rating in a report on Thursday, April 11th. Finally, Wells Fargo & Company raised their price objective on shares of BorgWarner from $43.00 to $45.00 and gave the stock an “overweight” rating in a research note on Friday. Eight equities research analysts have rated the stock with a hold rating and ten have assigned a buy rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $43.93.

Insider Buying and Selling

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Cambridge Investment Research Advisors Inc. increased its position in shares of BorgWarner by 15.2% during the third 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 in the last quarter. Xponance Inc. increased its position in BorgWarner by 5.3% during the 3rd quarter. Xponance Inc. now owns 39,659 shares of the auto parts company’s stock valued at $1,601,000 after buying an additional 2,006 shares in the last quarter. Raymond James & Associates boosted its holdings in BorgWarner by 4.7% in the third quarter. Raymond James & Associates now owns 459,318 shares of the auto parts company’s stock worth $18,543,000 after acquiring an additional 20,536 shares in the last quarter. Raymond James Financial Services Advisors Inc. boosted its holdings in BorgWarner by 2.1% in the third quarter. Raymond James Financial Services Advisors Inc. now owns 64,887 shares of the auto parts company’s stock worth $2,619,000 after acquiring an additional 1,339 shares in the last quarter. Finally, Bank of New York Mellon Corp grew its stake in shares of BorgWarner by 3.7% during the third 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 last quarter. Hedge funds and other institutional investors own 95.67% of the company’s stock.

BorgWarner Trading Up 2.3 %

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

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.