Zacks Investment Research Lowers BorgWarner (BWA) to Hold
BorgWarner (NYSE:BWA) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Friday.
According to Zacks, “BorgWarner is poised to benefit from its expansion in Asia that will positively impact its sales figure. Also, a strong balance sheet and ample cash flow helps the company to return capital to its shareholders and undertake new acquisitions. Moreover, it has provided a positive guidance for the fiscal 2017. Also, in the last three months, BorgWarner’s shares have outperformed the industry it belongs to. However, frequent price decreasing pressure from OEMs despite rising production costs and fluctuating foreign currencies are few concerns for the company.”
Several other research firms also recently issued reports on BWA. Royal Bank of Canada restated a “hold” rating and set a $61.00 price objective on shares of BorgWarner in a report on Wednesday, December 20th. Oppenheimer assumed coverage on BorgWarner in a report on Thursday, December 7th. They set an “outperform” rating and a $63.00 price objective on the stock. BMO Capital Markets boosted their price objective on BorgWarner from $60.00 to $65.00 and gave the stock an “outperform” rating in a report on Monday, October 30th. Citigroup boosted their price objective on BorgWarner from $50.00 to $54.00 and gave the stock a “neutral” rating in a report on Monday, October 30th. Finally, Buckingham Research boosted their price objective on BorgWarner from $37.00 to $45.00 and gave the stock a “neutral” rating in a report on Thursday, October 19th. Two equities research analysts have rated the stock with a sell rating, eight have issued a hold rating and eight have issued a buy rating to the stock. The stock presently has an average rating of “Hold” and a consensus target price of $51.88.
BorgWarner (NYSE:BWA) last posted its quarterly earnings data on Thursday, October 26th. The auto parts company reported $0.95 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.88 by $0.07. The firm had revenue of $2.42 billion for the quarter, compared to the consensus estimate of $2.26 billion. BorgWarner had a return on equity of 21.48% and a net margin of 3.09%. The business’s revenue for the quarter was up 9.1% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.78 EPS. equities research analysts anticipate that BorgWarner will post 3.83 EPS for the current fiscal year.
In other news, VP Joel Wiegert sold 1,400 shares of the company’s stock in a transaction dated Monday, December 18th. The stock was sold at an average price of $52.35, for a total value of $73,290.00. Following the transaction, the vice president now owns 16,197 shares in the company, valued at approximately $847,912.95. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP John J. Gasparovic sold 38,409 shares of the company’s stock in a transaction dated Monday, December 18th. The shares were sold at an average price of $52.60, for a total value of $2,020,313.40. Following the completion of the transaction, the executive vice president now owns 63,937 shares in the company, valued at approximately $3,363,086.20. The disclosure for this sale can be found here. 0.66% of the stock is owned by corporate insiders.
Several institutional investors and hedge funds have recently modified their holdings of BWA. Goldman Sachs Group Inc. increased its holdings in shares of BorgWarner by 108.2% in the 2nd quarter. Goldman Sachs Group Inc. now owns 2,496,736 shares of the auto parts company’s stock valued at $105,762,000 after purchasing an additional 1,297,584 shares during the period. Prudential Financial Inc. increased its holdings in shares of BorgWarner by 154.3% in the 3rd quarter. Prudential Financial Inc. now owns 2,076,392 shares of the auto parts company’s stock valued at $106,373,000 after purchasing an additional 1,259,970 shares during the period. Rothschild Asset Management Inc. acquired a new position in shares of BorgWarner in the 3rd quarter valued at about $56,713,000. Boston Partners increased its holdings in shares of BorgWarner by 7.2% in the 3rd quarter. Boston Partners now owns 11,588,389 shares of the auto parts company’s stock valued at $593,672,000 after purchasing an additional 777,782 shares during the period. Finally, Black Creek Investment Management Inc. increased its holdings in shares of BorgWarner by 32.5% in the 2nd quarter. Black Creek Investment Management Inc. now owns 2,664,249 shares of the auto parts company’s stock valued at $112,858,000 after purchasing an additional 653,574 shares during the period. Institutional investors own 95.15% of the company’s stock.
WARNING: This article was first posted by American Banking News and is owned by of American Banking News. If you are reading this article on another publication, it was stolen and reposted in violation of US & international copyright and trademark laws. The original version of this article can be accessed at https://www.americanbankingnews.com/2018/01/12/zacks-investment-research-lowers-borgwarner-bwa-to-hold-2.html.
BorgWarner Inc is engaged in providing technology solutions for combustion, hybrid and electric vehicles. The Company’s segments include Engine and Drivetrain. The Engine segment’s products include turbochargers, timing devices and chains, emissions systems and thermal systems. The Engine segment develops and manufactures products for gasoline and diesel engines, and alternative powertrains.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for BorgWarner Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for BorgWarner and related companies with MarketBeat.com's FREE daily email newsletter.