BorgWarner Inc. (NYSE:BWA) Receives Consensus Rating of “Moderate Buy” from Brokerages

Shares of BorgWarner Inc. (NYSE:BWA) have earned an average rating of “Moderate Buy” from the seventeen brokerages that are presently covering the company, MarketBeat reports. Seven equities research analysts have rated the stock with a hold recommendation and ten have assigned a buy recommendation to the company. The average 1 year price objective among analysts that have covered the stock in the last year is $43.76.

A number of research firms have recently weighed in on BWA. Oppenheimer lifted their price target on shares of BorgWarner from $39.00 to $40.00 and gave the stock an “outperform” rating in a research report on Friday, May 3rd. Barclays boosted their target price on BorgWarner from $44.00 to $45.00 and gave the company an “overweight” rating in a research note on Monday. Citigroup raised their price target on BorgWarner from $33.00 to $41.00 and gave the stock a “neutral” rating in a research report on Monday. Piper Sandler assumed coverage on BorgWarner in a research note on Friday, March 15th. They set an “overweight” rating and a $43.00 target price for the company. Finally, TheStreet lowered shares of BorgWarner from a “b-” rating to a “c+” rating in a research note on Thursday, February 8th.

Insider Activity at BorgWarner

In other news, VP Volker Weng sold 20,000 shares of BorgWarner stock in a transaction on 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. In other news, VP Volker Weng sold 20,000 shares of BorgWarner stock in a transaction that occurred on Thursday, March 7th. The shares were sold at an average price of $32.85, for a total value of $657,000.00. Following the completion of the sale, the vice president now directly owns 111,964 shares in the company, valued at $3,678,017.40. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CAO Tonit M. Calaway sold 35,603 shares of the stock in a transaction that occurred on Monday, February 12th. The stock was sold at an average price of $32.15, for a total value of $1,144,636.45. Following the sale, the chief accounting officer now directly owns 83,348 shares in the company, valued at approximately $2,679,638.20. The disclosure for this sale can be found here. Insiders sold 287,503 shares of company stock worth $9,015,478 in the last ninety days. 0.63% of the stock is owned by company insiders.

Institutional Investors Weigh In On BorgWarner

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Headlands Technologies LLC acquired a new position in BorgWarner during the 3rd quarter worth approximately $28,000. EdgeRock Capital LLC bought a new position in shares of BorgWarner in the 4th quarter valued at $30,000. Riverview Trust Co acquired a new stake in shares of BorgWarner during the 1st quarter valued at $30,000. Sound Income Strategies LLC bought a new stake in BorgWarner during the 4th quarter worth $32,000. Finally, Bruce G. Allen Investments LLC acquired a new position in BorgWarner in the 4th quarter worth about $33,000. 95.67% of the stock is currently owned by institutional investors.

BorgWarner Stock Performance

NYSE BWA opened at $36.80 on Wednesday. The company has a 50 day moving average of $33.35 and a 200-day moving average of $33.67. BorgWarner has a 1-year low of $29.51 and a 1-year high of $50.04. The firm has a market cap of $8.38 billion, a price-to-earnings ratio of 13.94, a PEG ratio of 1.08 and a beta of 1.30. The company has a current ratio of 1.54, a quick ratio of 1.20 and a debt-to-equity ratio of 0.55.

BorgWarner (NYSE:BWA) last posted its quarterly earnings data on Thursday, May 2nd. The auto parts company reported $1.03 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.87 by $0.16. The firm had revenue of $3.60 billion for the quarter, compared to the consensus estimate of $3.51 billion. BorgWarner had a return on equity of 15.33% and a net margin of 4.02%. The business’s revenue for the quarter was up 6.3% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.09 EPS. On average, equities analysts forecast that BorgWarner will post 3.94 earnings per share for the current fiscal year.

BorgWarner Announces Dividend

The firm 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 $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 1.20%. BorgWarner’s dividend payout ratio is 16.67%.

BorgWarner declared that its Board of Directors has authorized a stock buyback plan on Thursday, May 2nd that authorizes the company to repurchase $500.00 million in outstanding shares. This repurchase authorization authorizes the auto parts company to purchase up to 6% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board of directors believes its shares are undervalued.

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.