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

StockNews.com lowered shares of BorgWarner (NYSE:BWA) from a buy rating to a hold rating in a research note released on Tuesday.

Several other research firms have also recently issued reports on BWA. Robert W. Baird dropped their target price on BorgWarner from $40.00 to $38.00 and set a neutral rating on the stock in a research report on Friday, July 12th. UBS Group boosted their target price on BorgWarner from $41.00 to $42.00 and gave the stock a buy rating in a research report on Wednesday, July 10th. Oppenheimer boosted their target price on BorgWarner from $39.00 to $40.00 and gave the stock an outperform rating in a research report on Friday, May 3rd. JPMorgan Chase & Co. dropped their target price on BorgWarner from $52.00 to $50.00 and set an overweight rating on the stock in a research report on Monday. Finally, Bank of America dropped their target price on BorgWarner from $50.00 to $45.00 and set a buy rating on the stock in a research report on Monday. Eight analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company. Based on data from MarketBeat.com, BorgWarner has an average rating of Moderate Buy and an average price target of $41.29.

BorgWarner Stock Performance

Shares of BWA stock opened at $32.18 on Tuesday. The stock has a market capitalization of $7.33 billion, a PE ratio of 12.19, a price-to-earnings-growth ratio of 0.75 and a beta of 1.22. BorgWarner has a 52-week low of $29.51 and a 52-week high of $46.77. The stock’s 50-day moving average price is $33.68 and its 200 day moving average price is $33.48. 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 issued its quarterly earnings results on Thursday, May 2nd. The auto parts company reported $1.03 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $3.60 billion for the quarter, compared to analysts’ expectations of $3.51 billion. During the same quarter in the previous year, the firm posted $1.09 EPS. The firm’s revenue for the quarter was up 6.3% on a year-over-year basis. As a group, equities research analysts forecast that BorgWarner will post 4.03 EPS for the current year.

BorgWarner announced that its board has initiated a share repurchase 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 reacquire up to 6% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s board believes its shares are undervalued.

BorgWarner Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, September 16th. Investors of record on Tuesday, September 3rd will be paid a $0.11 dividend. This represents a $0.44 dividend on an annualized basis and a yield of 1.37%. The ex-dividend date of this dividend is Tuesday, September 3rd. BorgWarner’s payout ratio is currently 16.67%.

Institutional Investors Weigh In On BorgWarner

Institutional investors and hedge funds have recently bought and sold shares of the stock. EdgeRock Capital LLC purchased a new stake in BorgWarner in the 4th quarter valued at approximately $30,000. Riverview Trust Co purchased a new stake in BorgWarner in the 1st quarter valued at approximately $30,000. LRI Investments LLC lifted its stake in BorgWarner by 2,685.3% in the 2nd quarter. LRI Investments LLC now owns 947 shares of the auto parts company’s stock valued at $31,000 after buying an additional 913 shares in the last quarter. Olistico Wealth LLC purchased a new stake in BorgWarner in the 2nd quarter valued at approximately $35,000. Finally, Whittier Trust Co. of Nevada Inc. lifted its stake in BorgWarner by 12,144.4% in the 1st quarter. Whittier Trust Co. of Nevada Inc. now owns 1,102 shares of the auto parts company’s stock valued at $38,000 after buying an additional 1,093 shares in the last quarter. 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.