BorgWarner Inc. (NYSE:BWA) Receives Consensus Recommendation of “Moderate Buy” from Analysts

BorgWarner Inc. (NYSE:BWA) has earned a consensus rating of “Moderate Buy” from the seventeen research firms that are presently covering the stock, MarketBeat reports. Seven research analysts have rated the stock with a hold rating and ten have given a buy rating to the company. The average twelve-month price objective among brokerages that have issued a report on the stock in the last year is $41.29.

A number of research analysts have issued reports on the stock. JPMorgan Chase & Co. decreased their price target on shares of BorgWarner from $52.00 to $50.00 and set an “overweight” rating for the company in a report on Monday, July 22nd. StockNews.com cut shares of BorgWarner from a “buy” rating to a “hold” rating in a report on Tuesday, July 23rd. Robert W. Baird decreased their price target on shares of BorgWarner from $40.00 to $38.00 and set a “neutral” rating for the company in a report on Friday, July 12th. Bank of America decreased their price target on shares of BorgWarner from $50.00 to $45.00 and set a “buy” rating for the company in a report on Monday, July 22nd. Finally, Barclays raised their price target on shares of BorgWarner from $44.00 to $45.00 and gave the stock an “overweight” rating in a report on Monday, May 6th.

BorgWarner Trading Up 2.0 %

NYSE:BWA opened at $32.81 on Monday. BorgWarner has a 52 week low of $29.51 and a 52 week high of $46.77. The firm has a 50 day moving average of $33.59 and a 200 day moving average of $33.46. 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 stock has a market capitalization of $7.48 billion, a price-to-earnings ratio of 12.43, a PEG ratio of 0.76 and a beta of 1.22.

BorgWarner (NYSE:BWA) last posted its earnings results on Thursday, May 2nd. The auto parts company reported $1.03 EPS for the quarter, beating analysts’ consensus estimates of $0.87 by $0.16. BorgWarner had a net margin of 4.02% and a return on equity of 15.33%. The company had revenue of $3.60 billion during the quarter, compared to analysts’ expectations of $3.51 billion. During the same quarter in the prior year, the company posted $1.09 earnings per share. BorgWarner’s revenue for the quarter was up 6.3% compared to the same quarter last year. As a group, sell-side analysts anticipate that BorgWarner will post 4.01 earnings per share for the current fiscal year.

BorgWarner Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 16th. Shareholders of record on Tuesday, September 3rd will be issued a dividend of $0.11 per share. This represents a $0.44 annualized dividend and a yield of 1.34%. The ex-dividend date of this dividend is Tuesday, September 3rd. BorgWarner’s payout ratio is 16.67%.

BorgWarner declared that its board has initiated a stock buyback plan on Thursday, May 2nd that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the auto parts company to purchase up to 6% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.

Hedge Funds Weigh In On BorgWarner

Several hedge funds and other institutional investors have recently added to or reduced their stakes in BWA. Norges Bank purchased a new position in BorgWarner during the fourth quarter valued at $75,489,000. Victory Capital Management Inc. lifted its stake in shares of 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 worth $346,614,000 after buying an additional 948,659 shares in the last quarter. Ninety One UK Ltd lifted its stake 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 worth $59,376,000 after buying an additional 761,250 shares in the last quarter. Hotchkis & Wiley Capital Management LLC lifted its stake 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 worth $79,359,000 after buying an additional 670,720 shares in the last quarter. Finally, Swedbank AB purchased a new position in shares of BorgWarner in the first quarter worth about $14,022,000. 95.67% of the stock is owned by hedge funds and other institutional investors.

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.