BorgWarner (NYSE:BWA) Hits New 1-Year Low on Insider Selling

BorgWarner Inc. (NYSE:BWA) shares hit a new 52-week low during mid-day trading on Thursday following insider selling activity. The stock traded as low as $28.65 and last traded at $28.89, with a volume of 2924629 shares trading hands. The stock had previously closed at $29.44.

Specifically, CAO Tonit M. Calaway sold 13,500 shares of the stock in a transaction that occurred on Monday, February 10th. The shares were sold at an average price of $30.16, for a total transaction of $407,160.00. Following the transaction, the chief accounting officer now owns 259,310 shares in the company, valued at $7,820,789.60. This represents a 4.95 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on BWA. The Goldman Sachs Group reduced their price target on BorgWarner from $35.00 to $31.00 and set a “neutral” rating on the stock in a research report on Thursday, January 16th. Evercore ISI reduced their target price on BorgWarner from $43.00 to $40.00 and set an “outperform” rating on the stock in a report on Monday, February 10th. Guggenheim reaffirmed a “buy” rating and issued a $41.00 price target on shares of BorgWarner in a research note on Thursday, December 12th. Barclays reduced their price objective on shares of BorgWarner from $43.00 to $42.00 and set an “overweight” rating on the stock in a research note on Tuesday. Finally, StockNews.com cut shares of BorgWarner from a “buy” rating to a “hold” rating in a research report on Friday, February 7th. Seven investment analysts have rated the stock with a hold rating and ten have issued a buy rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $40.20.

BorgWarner Price Performance

The business’s 50-day simple moving average is $31.95 and its two-hundred day simple moving average is $33.17. The company has a current ratio of 1.79, a quick ratio of 1.48 and a debt-to-equity ratio of 0.66. The firm has a market cap of $6.61 billion, a price-to-earnings ratio of 21.15, a P/E/G ratio of 0.63 and a beta of 1.18.

BorgWarner (NYSE:BWA) last issued its earnings results on Thursday, February 6th. The auto parts company reported $1.01 earnings per share for the quarter, topping analysts’ consensus estimates of $0.93 by $0.08. BorgWarner had a return on equity of 15.93% and a net margin of 2.40%. As a group, research analysts expect that BorgWarner Inc. will post 4.54 EPS for the current fiscal year.

BorgWarner Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, March 17th. Stockholders of record on Monday, March 3rd will be given a dividend of $0.11 per share. This represents a $0.44 annualized dividend and a dividend yield of 1.46%. The ex-dividend date is Monday, March 3rd. BorgWarner’s payout ratio is presently 30.77%.

Hedge Funds Weigh In On BorgWarner

Several large investors have recently added to or reduced their stakes in the business. Pacer Advisors Inc. lifted its holdings in shares of BorgWarner by 21,752.6% in the third quarter. Pacer Advisors Inc. now owns 4,646,950 shares of the auto parts company’s stock valued at $168,638,000 after purchasing an additional 4,625,685 shares in the last quarter. Norges Bank purchased a new stake in BorgWarner in the 4th quarter valued at $62,180,000. Fuller & Thaler Asset Management Inc. boosted its holdings in BorgWarner by 8,137.5% during the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 1,299,057 shares of the auto parts company’s stock worth $41,297,000 after acquiring an additional 1,283,287 shares during the last quarter. LSV Asset Management grew its stake in shares of BorgWarner by 22.5% in the 4th quarter. LSV Asset Management now owns 4,308,145 shares of the auto parts company’s stock worth $136,956,000 after acquiring an additional 792,100 shares in the last quarter. Finally, Swedbank AB lifted its position in shares of BorgWarner by 91.7% during the fourth quarter. Swedbank AB now owns 1,618,550 shares of the auto parts company’s stock valued at $51,454,000 after purchasing an additional 774,438 shares in the last quarter. 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.