BorgWarner (NYSE:BWA) Price Target Cut to $42.00 by Analysts at Wells Fargo & Company

BorgWarner (NYSE:BWA) had its price target cut by Wells Fargo & Company from $44.00 to $42.00 in a research report released on Thursday morning, Benzinga reports. They currently have an overweight rating on the auto parts company’s stock.

A number of other equities research analysts also recently issued reports on BWA. TD Cowen increased their price target on BorgWarner from $36.00 to $40.00 and gave the stock a buy rating in a research report on Friday, May 3rd. Robert W. Baird raised their price target on BorgWarner from $38.00 to $39.00 and gave the stock a neutral rating in a research report on Thursday. Oppenheimer increased their price objective on shares of BorgWarner from $39.00 to $40.00 and gave the stock an outperform rating in a research note on Friday, May 3rd. JPMorgan Chase & Co. cut 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. Finally, Citigroup cut their target price on 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 issued a buy rating to the company. Based on data from MarketBeat.com, the company has an average rating of Moderate Buy and a consensus target price of $41.35.

BorgWarner Stock Performance

NYSE:BWA traded down $1.63 during mid-day trading on Thursday, hitting $32.40. 747,060 shares of the stock were exchanged, compared to its average volume of 2,864,060. The firm’s 50-day simple moving average is $33.41 and its 200 day simple moving average is $33.46. The stock has a market capitalization of $7.38 billion, a price-to-earnings ratio of 12.89, a price-to-earnings-growth ratio of 0.81 and a beta of 1.22. BorgWarner has a fifty-two week low of $29.51 and a fifty-two week high of $42.78. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.20 and a current ratio of 1.54.

BorgWarner (NYSE:BWA) last announced its earnings results on Wednesday, July 31st. The auto parts company reported $1.19 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.00 by $0.19. BorgWarner had a net margin of 4.97% and a return on equity of 15.66%. The company had revenue of $3.60 billion during the quarter, compared to analysts’ expectations of $3.69 billion. During the same quarter in the previous year, the business posted $1.35 earnings per share. BorgWarner’s quarterly revenue was down 20.3% on a year-over-year basis. As a group, equities analysts anticipate that BorgWarner will post 4.06 EPS for the current fiscal year.

BorgWarner Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, September 16th. Investors of record on Tuesday, September 3rd will be given a $0.11 dividend. The ex-dividend date of this dividend is Tuesday, September 3rd. This represents a $0.44 annualized dividend and a yield of 1.36%. BorgWarner’s payout ratio is 16.67%.

BorgWarner declared that its Board of Directors has authorized a stock repurchase 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 repurchase up to 6% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s management believes its shares are undervalued.

Institutional Trading of BorgWarner

Hedge funds and other institutional investors have recently modified their holdings of the business. Vanguard Group Inc. grew its holdings in shares of BorgWarner by 1.2% in the fourth quarter. Vanguard Group Inc. now owns 27,147,545 shares of the auto parts company’s stock worth $973,239,000 after purchasing an additional 331,401 shares during the last quarter. Victory Capital Management Inc. increased 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 purchasing an additional 948,659 shares in the last quarter. Earnest Partners LLC grew its position in shares of BorgWarner by 1.1% during the first quarter. Earnest Partners LLC now owns 3,310,639 shares of the auto parts company’s stock valued at $115,012,000 after purchasing an additional 35,709 shares in the last quarter. Hotchkis & Wiley Capital Management LLC increased its holdings 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 purchasing an additional 670,720 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. boosted its stake in BorgWarner by 1.9% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 2,108,200 shares of the auto parts company’s stock valued at $75,579,000 after buying an additional 39,806 shares during the last quarter. Institutional investors own 95.67% of the company’s stock.

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.