BorgWarner (BWA) Downgraded by Zacks Investment Research to “Hold”
BorgWarner (NYSE:BWA) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Friday.
According to Zacks, “BorgWarner is poised to benefit from its expansion in Asia that will positively impact its sales figure. Also, a strong balance sheet and ample cash flow helps the company to return capital to its shareholders and undertake new acquisitions. Moreover, it has provided a positive guidance for the fiscal 2017. Also, in the last three months, BorgWarner’s shares have outperformed the industry it belongs to. However, frequent price decreasing pressure from OEMs despite rising production costs and fluctuating foreign currencies are few concerns for the company.”
A number of other research analysts have also issued reports on the company. Royal Bank of Canada reiterated a “hold” rating and issued a $61.00 target price on shares of BorgWarner in a report on Wednesday, December 20th. Oppenheimer assumed coverage on BorgWarner in a report on Thursday, December 7th. They issued an “outperform” rating and a $63.00 target price for the company. BMO Capital Markets lifted their target price on BorgWarner from $60.00 to $65.00 and gave the company an “outperform” rating in a report on Monday, October 30th. Citigroup lifted their target price on BorgWarner from $50.00 to $54.00 and gave the company a “neutral” rating in a report on Monday, October 30th. Finally, Barclays set a $50.00 target price on BorgWarner and gave the company a “hold” rating in a report on Friday, October 20th. Two investment analysts have rated the stock with a sell rating, eight have issued a hold rating and eight have given a buy rating to the company’s stock. BorgWarner has a consensus rating of “Hold” and an average target price of $51.88.
BorgWarner (NYSE:BWA) traded up $1.32 during trading hours on Friday, reaching $57.23. The company had a trading volume of 2,346,900 shares, compared to its average volume of 1,590,389. The stock has a market capitalization of $12,066.29, a price-to-earnings ratio of 41.47, a PEG ratio of 1.62 and a beta of 1.77. BorgWarner has a 52-week low of $37.54 and a 52-week high of $57.89. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.10 and a current ratio of 1.43.
BorgWarner (NYSE:BWA) last released its earnings results on Thursday, October 26th. The auto parts company reported $0.95 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.88 by $0.07. The firm had revenue of $2.42 billion during the quarter, compared to analyst estimates of $2.26 billion. BorgWarner had a return on equity of 21.48% and a net margin of 3.09%. BorgWarner’s revenue was up 9.1% compared to the same quarter last year. During the same period last year, the business posted $0.78 earnings per share. equities analysts anticipate that BorgWarner will post 3.83 earnings per share for the current fiscal year.
In other news, VP Joel Wiegert sold 1,400 shares of the business’s stock in a transaction dated Monday, December 18th. The stock was sold at an average price of $52.35, for a total value of $73,290.00. Following the completion of the sale, the vice president now directly owns 16,197 shares of the company’s stock, valued at approximately $847,912.95. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP John J. Gasparovic sold 38,409 shares of the business’s stock in a transaction dated Monday, December 18th. The shares were sold at an average price of $52.60, for a total value of $2,020,313.40. Following the completion of the sale, the executive vice president now directly owns 63,937 shares of the company’s stock, valued at $3,363,086.20. The disclosure for this sale can be found here. 0.66% of the stock is owned by insiders.
Institutional investors have recently bought and sold shares of the company. Pacer Advisors Inc. lifted its holdings in shares of BorgWarner by 8.3% in the 2nd quarter. Pacer Advisors Inc. now owns 4,433 shares of the auto parts company’s stock valued at $188,000 after purchasing an additional 341 shares during the last quarter. Zeke Capital Advisors LLC purchased a new stake in shares of BorgWarner in the 3rd quarter valued at about $201,000. Dorsey & Whitney Trust CO LLC purchased a new stake in shares of BorgWarner in the 3rd quarter valued at about $202,000. Rothschild Investment Corp IL purchased a new stake in shares of BorgWarner in the 3rd quarter valued at about $205,000. Finally, Reliance Trust Co. of Delaware purchased a new stake in shares of BorgWarner in the 3rd quarter valued at about $213,000. 95.16% of the stock is owned by institutional investors and hedge funds.
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BorgWarner Inc is engaged in providing technology solutions for combustion, hybrid and electric vehicles. The Company’s segments include Engine and Drivetrain. The Engine segment’s products include turbochargers, timing devices and chains, emissions systems and thermal systems. The Engine segment develops and manufactures products for gasoline and diesel engines, and alternative powertrains.
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