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

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

Several other research firms have also weighed in on BWA. Citigroup upped their target price on shares of BorgWarner from $33.00 to $41.00 and gave the stock a neutral rating in a report on Monday. JPMorgan Chase & Co. decreased their price objective on shares of BorgWarner from $59.00 to $52.00 and set an overweight rating on the stock in a research note on Thursday, January 25th. The Goldman Sachs Group cut their target price on shares of BorgWarner from $38.00 to $34.00 and set a neutral rating for the company in a research note on Friday, February 9th. BNP Paribas lowered BorgWarner from an outperform rating to a neutral rating and decreased their price target for the stock from $43.00 to $35.00 in a research report on Tuesday, February 20th. Finally, Oppenheimer lifted their price objective on BorgWarner from $39.00 to $40.00 and gave the company an outperform rating in a research report on Friday, May 3rd. Seven equities research analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the stock. Based on data from MarketBeat, the company has a consensus rating of Moderate Buy and an average target price of $43.76.

BorgWarner Stock Up 2.0 %

Shares of BWA opened at $37.52 on Monday. The company has a quick ratio of 1.20, a current ratio of 1.54 and a debt-to-equity ratio of 0.55. The company has a 50-day moving average price of $33.49 and a two-hundred day moving average price of $33.70. The stock has a market cap of $8.55 billion, a price-to-earnings ratio of 14.21, a P/E/G ratio of 1.08 and a beta of 1.30. BorgWarner has a 12 month low of $29.51 and a 12 month high of $50.04.

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

BorgWarner announced that its board has authorized a share buyback program on Thursday, May 2nd that allows the company to buyback $500.00 million in shares. This buyback authorization allows the auto parts company to purchase up to 6% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s board of directors believes its stock is undervalued.

BorgWarner Dividend Announcement

The firm also recently announced 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. This represents a $0.44 annualized dividend and a dividend yield of 1.17%. The ex-dividend date is Monday, June 3rd. BorgWarner’s dividend payout ratio (DPR) is presently 16.67%.

Insider Activity at BorgWarner

In other BorgWarner news, CAO Tonit M. Calaway sold 35,603 shares of BorgWarner stock in a transaction on Monday, February 12th. The shares were sold at an average price of $32.15, for a total transaction of $1,144,636.45. Following the completion of the sale, the chief accounting officer now owns 83,348 shares of the company’s stock, valued at approximately $2,679,638.20. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. In related news, CEO Frederic Lissalde sold 225,900 shares of the stock in a transaction that occurred on 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 sale, the chief executive officer now directly owns 455,227 shares in the company, valued at approximately $14,148,455.16. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Tonit M. Calaway sold 35,603 shares of the business’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 transaction of $1,144,636.45. Following the transaction, the chief accounting officer now owns 83,348 shares of the company’s stock, valued at approximately $2,679,638.20. The disclosure for this sale can be found here. Insiders have sold 287,503 shares of company stock worth $9,015,478 over the last ninety days. Company insiders own 0.45% of the company’s stock.

Hedge Funds Weigh In On BorgWarner

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