StockNews.com Downgrades BorgWarner (NYSE:BWA) to Hold

StockNews.com downgraded shares of BorgWarner (NYSE:BWA) from a buy rating to a hold rating in a report released on Wednesday morning.

Several other research firms have also commented on BWA. Citigroup increased their target price on BorgWarner from $33.00 to $41.00 and gave the company a neutral rating in a report on Monday, May 6th. Piper Sandler began 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. TD Cowen increased their price target on shares of BorgWarner from $36.00 to $40.00 and gave the company a buy rating in a research note on Friday, May 3rd. Oppenheimer boosted their price objective 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. Finally, Barclays upped their target price on shares of BorgWarner from $44.00 to $45.00 and gave the company an overweight rating in a report on Monday, May 6th. Eight research analysts have rated the stock with a hold rating and ten have given a buy rating to the stock. According to MarketBeat, BorgWarner presently has an average rating of Moderate Buy and an average price target of $43.71.

BorgWarner Trading Up 0.8 %

BWA opened at $32.24 on Wednesday. The business has a fifty day moving average price of $34.81 and a 200 day moving average price of $33.84. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.54 and a quick ratio of 1.20. BorgWarner has a 12 month low of $29.51 and a 12 month high of $50.04. The stock has a market capitalization of $7.35 billion, a price-to-earnings ratio of 12.21, a PEG ratio of 0.78 and a beta of 1.28.

BorgWarner (NYSE:BWA) last released its earnings results on Thursday, May 2nd. The auto parts company reported $1.03 earnings per share for the quarter, topping analysts’ consensus estimates of $0.87 by $0.16. BorgWarner had a net margin of 4.02% and a return on equity of 15.33%. The firm had revenue of $3.60 billion for the quarter, compared to analyst estimates of $3.51 billion. During the same period in the prior year, the firm earned $1.09 earnings per share. The business’s quarterly revenue was up 6.3% compared to the same quarter last year. Sell-side analysts expect that BorgWarner will post 4.05 earnings per share for the current fiscal year.

BorgWarner Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, June 17th. Stockholders of record on Monday, June 3rd were paid a dividend of $0.11 per share. This represents a $0.44 annualized dividend and a dividend yield of 1.36%. The ex-dividend date was Monday, June 3rd. BorgWarner’s dividend payout ratio (DPR) is presently 16.67%.

BorgWarner declared that its board has authorized a share repurchase plan on Thursday, May 2nd that permits the company to repurchase $500.00 million in outstanding shares. This repurchase authorization permits the auto parts company to repurchase up to 6% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board of directors believes its stock is undervalued.

Hedge Funds Weigh In On BorgWarner

A number of large investors have recently bought and sold shares of the company. Vanguard Group Inc. lifted its position in BorgWarner by 1.2% in the fourth quarter. Vanguard Group Inc. now owns 27,147,545 shares of the auto parts company’s stock valued at $973,239,000 after purchasing an additional 331,401 shares during the period. Victory Capital Management Inc. boosted its stake in shares of BorgWarner by 10.9% in 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 in the last quarter. American Century Companies Inc. grew its holdings in BorgWarner by 18.3% during the third quarter. American Century Companies Inc. now owns 4,189,541 shares of the auto parts company’s stock worth $169,132,000 after acquiring an additional 648,633 shares during the period. Earnest Partners LLC raised its position in BorgWarner by 1.1% in the first quarter. Earnest Partners LLC now owns 3,310,639 shares of the auto parts company’s stock worth $115,012,000 after acquiring an additional 35,709 shares in the last quarter. Finally, Northern Trust Corp lifted its holdings in BorgWarner by 6.5% in the third quarter. Northern Trust Corp now owns 2,780,695 shares of the auto parts company’s stock valued at $112,257,000 after acquiring an additional 170,842 shares during the period. Hedge funds and other institutional investors 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.