Short Interest in BorgWarner Inc. (NYSE:BWA) Decreases By 8.4%

BorgWarner Inc. (NYSE:BWA) was the recipient of a significant decline in short interest in July. As of July 15th, there was short interest totalling 9,860,000 shares, a decline of 8.4% from the June 30th total of 10,770,000 shares. Approximately 4.4% of the company’s stock are short sold. Based on an average daily volume of 2,770,000 shares, the short-interest ratio is currently 3.6 days.

Analyst Ratings Changes

BWA has been the subject of a number of research analyst reports. Wells Fargo & Company cut their target price on shares of BorgWarner from $44.00 to $42.00 and set an “overweight” rating for the company in a research report on Thursday. Bank of America reduced their price objective on BorgWarner from $50.00 to $45.00 and set a “buy” rating for the company in a research report on Monday, July 22nd. Barclays upped their target price on BorgWarner from $45.00 to $47.00 and gave the stock an “overweight” rating in a research report on Thursday. UBS Group lifted their price target on BorgWarner from $41.00 to $42.00 and gave the company a “buy” rating in a report on Wednesday, July 10th. Finally, Citigroup dropped their price objective on BorgWarner from $41.00 to $36.00 and set a “neutral” rating on the stock in a report on Friday, July 12th. 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, BorgWarner currently has a consensus rating of “Moderate Buy” and an average target price of $41.35.

BorgWarner Stock Down 3.6 %

BWA traded down $1.28 during trading on Thursday, reaching $34.03. The company had a trading volume of 3,355,314 shares, compared to its average volume of 2,878,458. The company has a market cap of $7.75 billion, a P/E ratio of 12.89, a PEG ratio of 0.75 and a beta of 1.22. BorgWarner has a 12 month low of $29.51 and a 12 month high of $46.73. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.54 and a quick ratio of 1.20. The business’s fifty day moving average price is $33.41 and its 200 day moving average price is $33.46.

BorgWarner (NYSE:BWA) last released its earnings results on Wednesday, July 31st. The auto parts company reported $1.19 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.00 by $0.19. The firm had revenue of $3.60 billion during the quarter, compared to analysts’ expectations of $3.69 billion. BorgWarner had a return on equity of 15.33% and a net margin of 4.02%. The company’s revenue was down 20.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.35 EPS. Equities analysts anticipate that BorgWarner will post 4.01 EPS for the current year.

BorgWarner announced that its Board of Directors has approved a share buyback program on Thursday, May 2nd that allows the company to repurchase $500.00 million in outstanding shares. This repurchase authorization allows the auto parts company to reacquire up to 6% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s leadership believes its stock is undervalued.

BorgWarner Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, September 16th. Stockholders of record on Tuesday, September 3rd will be paid a dividend of $0.11 per share. The ex-dividend date of this dividend is Tuesday, September 3rd. This represents a $0.44 annualized dividend and a dividend yield of 1.29%. BorgWarner’s dividend payout ratio is currently 16.67%.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in BWA. EdgeRock Capital LLC bought a new stake in BorgWarner during the 4th quarter worth about $30,000. Riverview Trust Co acquired a new position in BorgWarner during the first quarter valued at approximately $30,000. LRI Investments LLC grew its stake in BorgWarner by 2,685.3% in the second quarter. LRI Investments LLC now owns 947 shares of the auto parts company’s stock valued at $31,000 after purchasing an additional 913 shares in the last quarter. Olistico Wealth LLC bought a new stake in shares of BorgWarner during the 2nd quarter worth approximately $35,000. Finally, Whittier Trust Co. of Nevada Inc. boosted its holdings in shares of 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 during the last quarter. Institutional investors and hedge funds own 95.67% of the company’s stock.

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.