JPMorgan Chase & Co. Lowers BorgWarner (NYSE:BWA) Price Target to $50.00

BorgWarner (NYSE:BWA) had its price objective cut by research analysts at JPMorgan Chase & Co. from $52.00 to $50.00 in a note issued to investors on Monday, Benzinga reports. The brokerage currently has an “overweight” rating on the auto parts company’s stock. JPMorgan Chase & Co.‘s price objective would suggest a potential upside of 53.61% from the stock’s previous close.

Several other equities research analysts also recently weighed in on BWA. TD Cowen raised their target price 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. Robert W. Baird lowered their price objective on shares of BorgWarner from $40.00 to $38.00 and set a “neutral” rating for the company in a research note on Friday, July 12th. UBS Group lifted their price objective on shares of BorgWarner from $41.00 to $42.00 and gave the stock a “buy” rating in a research note on Wednesday, July 10th. Wells Fargo & Company lowered their price objective on shares of BorgWarner from $45.00 to $44.00 and set an “overweight” rating for the company in a research note on Tuesday, June 25th. Finally, Citigroup lowered their price objective on shares of BorgWarner from $41.00 to $36.00 and set a “neutral” rating for the company in a research note on Friday, July 12th. Eight equities research analysts have rated the stock with a hold rating and ten have given a buy rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $41.29.

BorgWarner Price Performance

Shares of BWA opened at $32.55 on Monday. The company has a market cap of $7.42 billion, a price-to-earnings ratio of 12.33, a price-to-earnings-growth ratio of 0.86 and a beta of 1.22. BorgWarner has a twelve month low of $29.51 and a twelve month high of $46.77. The company has a quick ratio of 1.20, a current ratio of 1.54 and a debt-to-equity ratio of 0.55. The company has a 50 day moving average of $33.89 and a two-hundred day moving average of $33.50.

BorgWarner (NYSE:BWA) last announced its earnings results on Thursday, May 2nd. The auto parts company reported $1.03 earnings per share for the quarter, beating the consensus estimate of $0.87 by $0.16. The company had revenue of $3.60 billion during the quarter, compared to the consensus estimate of $3.51 billion. BorgWarner had a net margin of 4.02% and a return on equity of 15.33%. BorgWarner’s revenue was up 6.3% compared to the same quarter last year. During the same period last year, the firm earned $1.09 earnings per share. As a group, analysts predict that BorgWarner will post 4.05 earnings per share for the current fiscal year.

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 shares. This repurchase authorization permits the auto parts company to buy up to 6% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board believes its shares are undervalued.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in BWA. Norges Bank purchased a new position in BorgWarner in the fourth quarter valued at $75,489,000. Victory Capital Management Inc. increased its holdings in 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. Ninety One UK Ltd grew its position in shares of BorgWarner by 85.1% in the fourth quarter. Ninety One UK Ltd now owns 1,656,221 shares of the auto parts company’s stock valued at $59,376,000 after purchasing an additional 761,250 shares during the period. Hotchkis & Wiley Capital Management LLC grew its position in shares of BorgWarner by 43.5% in the fourth quarter. Hotchkis & Wiley Capital Management LLC now owns 2,213,630 shares of the auto parts company’s stock valued at $79,359,000 after purchasing an additional 670,720 shares during the period. Finally, Swedbank AB acquired a new stake in shares of BorgWarner in the first quarter valued at about $14,022,000. Hedge funds and other institutional investors 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.