BorgWarner (NYSE:BWA) to Repurchase $500.00 million in Stock

BorgWarner (NYSE:BWA) announced that its board has approved a stock buyback program on Thursday, May 2nd, RTT News reports. The company plans to repurchase $500.00 million in shares. This repurchase authorization authorizes the auto parts company to purchase up to 6% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s management believes its stock is undervalued.

BorgWarner Trading Down 0.4 %

Shares of NYSE BWA traded down $0.14 during midday trading on Tuesday, hitting $36.80. The company’s stock had a trading volume of 2,677,064 shares, compared to its average volume of 2,895,630. The business’s 50 day moving average is $33.23 and its two-hundred day moving average is $33.68. BorgWarner has a 12-month low of $29.51 and a 12-month high of $50.04. The company has a current ratio of 1.54, a quick ratio of 1.20 and a debt-to-equity ratio of 0.55. The firm has a market cap of $8.38 billion, a P/E ratio of 13.99, a price-to-earnings-growth ratio of 1.08 and a beta of 1.30.

BorgWarner (NYSE:BWA) last released its quarterly earnings data on Thursday, May 2nd. The auto parts company reported $1.03 EPS for the quarter, topping 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 company had revenue of $3.60 billion for the quarter, compared to the consensus estimate of $3.51 billion. During the same period last year, the business posted $1.09 EPS. BorgWarner’s quarterly revenue was up 6.3% on a year-over-year basis. As a group, equities research analysts expect that BorgWarner will post 3.94 EPS for the current year.

BorgWarner Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, June 17th. Investors of record on Monday, June 3rd will be paid a dividend of $0.11 per share. The ex-dividend date is Monday, June 3rd. This represents a $0.44 annualized dividend and a dividend yield of 1.20%. BorgWarner’s dividend payout ratio (DPR) is presently 16.67%.

Analysts Set New Price Targets

Several research firms recently commented on BWA. JPMorgan Chase & Co. cut their target price on BorgWarner from $59.00 to $52.00 and set an “overweight” rating on the stock in a research note on Thursday, January 25th. BNP Paribas lowered shares of BorgWarner from an “outperform” rating to a “neutral” rating and reduced their price objective for the company from $43.00 to $35.00 in a research note on Tuesday, February 20th. Barclays upped their target price on shares of BorgWarner from $44.00 to $45.00 and gave the stock an “overweight” rating in a research note on Monday. Piper Sandler started coverage on shares of BorgWarner in a research report on Friday, March 15th. They set an “overweight” rating and a $43.00 price target for the company. Finally, TD Cowen boosted their price target on BorgWarner from $36.00 to $40.00 and gave the stock a “buy” rating in a research note on Friday. Seven investment analysts have rated the stock with a hold rating and eleven have given a buy rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $43.76.

Insider Transactions at BorgWarner

In other news, CEO Frederic Lissalde sold 225,900 shares of the company’s stock in a transaction dated Wednesday, February 14th. The shares were sold at an average price of $31.08, for a total transaction of $7,020,972.00. Following the transaction, the chief executive officer now owns 455,227 shares in the company, valued at $14,148,455.16. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. In related news, CEO Frederic Lissalde sold 225,900 shares of the firm’s stock in a transaction on Wednesday, February 14th. The stock was sold at an average price of $31.08, for a total value of $7,020,972.00. Following the completion of the transaction, the chief executive officer now owns 455,227 shares in the company, valued at approximately $14,148,455.16. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Tonit M. Calaway sold 35,603 shares of the business’s stock in a transaction dated Monday, February 12th. The shares were sold at an average price of $32.15, for a total value of $1,144,636.45. Following the sale, the chief accounting officer now owns 83,348 shares in the company, valued at approximately $2,679,638.20. The disclosure for this sale can be found here. Insiders sold 287,503 shares of company stock valued at $9,015,478 in the last quarter. 0.63% of the stock is currently owned by corporate insiders.

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.