BorgWarner (NYSE:BWA) Upgraded at Wall Street Zen

Wall Street Zen upgraded shares of BorgWarner (NYSE:BWA) from a hold rating to a buy rating in a report released on Sunday morning,Wall Street Zen reports.

Several other equities research analysts also recently commented on the company. Barclays increased their price objective on BorgWarner from $83.00 to $85.00 and gave the company an “overweight” rating in a report on Monday, August 10th. Deutsche Bank Aktiengesellschaft set a $80.00 target price on shares of BorgWarner in a report on Thursday, August 6th. JPMorgan Chase & Co. upped their price target on shares of BorgWarner from $75.00 to $85.00 and gave the stock an “overweight” rating in a research report on Monday, August 10th. Robert W. Baird set a $79.00 price target on shares of BorgWarner in a research report on Thursday, August 6th. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of BorgWarner in a research note on Friday, September 25th. Eleven investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $79.00.

BorgWarner Price Performance

Shares of NYSE BWA opened at $51.64 on Friday. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.41 and a quick ratio of 1.12. The business has a 50-day moving average of $60.74 and a 200-day moving average of $60.57. The stock has a market capitalization of $10.37 billion, a price-to-earnings ratio of 21.97, a PEG ratio of 0.76 and a beta of 1.20. BorgWarner has a fifty-two week low of $40.73 and a fifty-two week high of $78.82.

BorgWarner (NYSE:BWA) last released its earnings results on Thursday, October 29th. The auto parts company reported $1.39 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.25 by $0.14. BorgWarner had a return on equity of 19.61% and a net margin of 3.36%. The business had revenue of $3.49 billion for the quarter, compared to analyst estimates of $3.50 billion. During the same quarter in the prior year, the company posted $1.24 earnings per share. BorgWarner’s revenue was down 2.9% on a year-over-year basis. As a group, sell-side analysts predict that BorgWarner will post 5.28 earnings per share for the current fiscal year.

BorgWarner announced that its board has initiated a stock repurchase plan on Wednesday, August 5th that allows the company to buy back $1 billion in outstanding shares. This repurchase authorization allows the auto parts company to purchase up to 7.7% of its shares through open market purchases. Stock repurchase plans are typically a sign that the company’s board believes its stock is undervalued.

Insider Activity

In other news, Director Michael Hanley sold 5,000 shares of the firm’s stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $65.51, for a total value of $327,550.00. Following the completion of the sale, the director directly owned 34,313 shares of the company’s stock, valued at $2,247,844.63. This trade represents a 12.72% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CAO Amy Kulikowski sold 2,900 shares of BorgWarner stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $68.60, for a total value of $198,940.00. Following the transaction, the chief accounting officer owned 9,725 shares of the company’s stock, valued at $667,135. This represents a 22.97% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 0.76% of the company’s stock.

Hedge Funds Weigh In On BorgWarner

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in BWA. Cullen Capital Management LLC acquired a new position in BorgWarner during the second quarter valued at approximately $4,937,000. Tribune Investment Group LP bought a new stake in BorgWarner during the second quarter worth $3,432,000. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in BorgWarner during the second quarter worth $5,664,000. Hsbc Holdings PLC acquired a new stake in shares of BorgWarner in the 2nd quarter valued at $35,785,000. Finally, Bessemer Group Inc. boosted its holdings in shares of BorgWarner by 19.8% in the 1st quarter. Bessemer Group Inc. now owns 241,173 shares of the auto parts company’s stock valued at $13,086,000 after purchasing an additional 39,787 shares in the last quarter. 95.67% of the stock is owned by institutional investors.

BorgWarner Company Profile

BorgWarner Inc (NYSE:BWA) is a global automotive technology company that develops and manufactures propulsion and mobility systems for vehicle manufacturers and commercial vehicle customers. The company serves both internal-combustion and electrified vehicle markets, with a portfolio focused on improving vehicle efficiency, performance, emissions, and electrification.

Its products and technologies include turbochargers, emissions and thermal-management systems, transmission components, friction products, battery systems, battery charging equipment, power electronics, electric motors, and other electric-drive components.