Citigroup Boosts BorgWarner (NYSE:BWA) Price Target to $41.00

BorgWarner (NYSE:BWA) had its target price raised by Citigroup from $33.00 to $41.00 in a report released on Monday morning, Benzinga reports. They currently have a neutral rating on the auto parts company’s stock.

A number of other brokerages also recently weighed in on BWA. The Goldman Sachs Group cut their target price on BorgWarner from $38.00 to $34.00 and set a neutral rating on the stock in a research note on Friday, February 9th. Robert W. Baird upped their price objective on BorgWarner from $36.00 to $40.00 and gave the company a neutral rating in a research note on Friday, May 3rd. StockNews.com cut BorgWarner from a buy rating to a hold rating in a research note on Friday, February 9th. Barclays increased their price target on shares of BorgWarner from $44.00 to $45.00 and gave the company an overweight rating in a research report on Monday. Finally, Oppenheimer boosted their target price on shares of BorgWarner from $39.00 to $40.00 and gave the company an outperform rating in a research note on Friday, May 3rd. Seven research analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of Moderate Buy and an average target price of $43.76.

BorgWarner Stock Up 2.0 %

Shares of NYSE:BWA opened at $37.52 on Monday. The business’s 50 day moving average is $33.49 and its 200 day moving average is $33.70. BorgWarner has a 12-month low of $29.51 and a 12-month high of $50.04. The stock has a market cap of $8.55 billion, a price-to-earnings ratio of 14.21, a PEG ratio of 1.08 and a beta of 1.30. The company has a quick ratio of 1.20, a current ratio of 1.54 and a debt-to-equity ratio of 0.55.

BorgWarner (NYSE:BWA) last announced its earnings results on Thursday, May 2nd. 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 4.02% and a return on equity of 15.33%. The company had revenue of $3.60 billion during the quarter, compared to the consensus estimate of $3.51 billion. During the same quarter in the prior year, the company posted $1.09 earnings per share. The firm’s revenue for the quarter was up 6.3% on a year-over-year basis. On average, sell-side analysts forecast that BorgWarner will post 3.94 earnings per share for the current fiscal year.

BorgWarner announced that its Board of Directors has authorized a stock buyback plan on Thursday, May 2nd that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the auto parts company to purchase up to 6% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s leadership believes its stock is undervalued.

BorgWarner Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, June 17th. Shareholders of record on Monday, June 3rd will be paid a $0.11 dividend. The ex-dividend date of this dividend is Monday, June 3rd. This represents a $0.44 annualized dividend and a yield of 1.17%. BorgWarner’s dividend payout ratio is currently 16.67%.

Insider Activity

In related news, VP Stefan Demmerle sold 3,000 shares of the company’s stock in a transaction that occurred on Tuesday, March 5th. The shares were sold at an average price of $31.29, for a total transaction of $93,870.00. Following the sale, the vice president now owns 252,013 shares of the company’s stock, valued at approximately $7,885,486.77. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In other BorgWarner news, VP Volker Weng sold 20,000 shares of BorgWarner stock in a transaction dated Thursday, March 7th. The stock was sold at an average price of $32.85, for a total transaction of $657,000.00. Following the completion of the sale, the vice president now owns 111,964 shares of the company’s stock, valued at $3,678,017.40. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, VP Stefan Demmerle sold 3,000 shares of the stock in a transaction dated Tuesday, March 5th. The shares were sold at an average price of $31.29, for a total value of $93,870.00. Following 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. Over the last ninety days, insiders sold 287,503 shares of company stock worth $9,015,478. 0.45% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Norges Bank purchased a new stake in shares of BorgWarner in the 4th quarter valued at $75,489,000. Boston Partners lifted its stake in BorgWarner by 58.9% in the third quarter. Boston Partners now owns 5,267,500 shares of the auto parts company’s stock worth $211,762,000 after purchasing an additional 1,951,783 shares during the last quarter. Invesco Ltd. boosted its position in BorgWarner by 30.4% during the third quarter. Invesco Ltd. now owns 4,399,084 shares of the auto parts company’s stock valued at $177,591,000 after buying an additional 1,024,361 shares during the period. Victory Capital Management Inc. grew its stake in shares of BorgWarner by 10.9% during the fourth quarter. Victory Capital Management Inc. now owns 9,668,438 shares of the auto parts company’s stock valued at $346,614,000 after buying an additional 948,659 shares during the last quarter. Finally, Ninety One UK Ltd increased its holdings in shares of BorgWarner by 85.1% in the fourth quarter. Ninety One UK Ltd now owns 1,656,221 shares of the auto parts company’s stock worth $59,376,000 after buying an additional 761,250 shares during the period. 95.67% of the stock is currently owned by institutional investors.

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.