BorgWarner Inc. (BWA) to Post FY2018 Earnings of $4.35 Per Share, Jefferies Financial Group Forecasts
BorgWarner Inc. (NYSE:BWA) – Jefferies Financial Group issued their FY2018 EPS estimates for BorgWarner in a report released on Monday, December 3rd. Jefferies Financial Group analyst D. Kelley anticipates that the auto parts company will post earnings per share of $4.35 for the year. Jefferies Financial Group currently has a “Buy” rating and a $48.00 price target on the stock. Jefferies Financial Group also issued estimates for BorgWarner’s Q4 2018 earnings at $1.07 EPS, FY2019 earnings at $4.61 EPS and FY2020 earnings at $4.96 EPS.
Other analysts have also issued research reports about the company. Wolfe Research began coverage on BorgWarner in a report on Tuesday, October 2nd. They issued an “outperform” rating for the company. ValuEngine lowered BorgWarner from a “sell” rating to a “strong sell” rating in a report on Saturday, September 1st. BMO Capital Markets set a $60.00 target price on BorgWarner and gave the company a “buy” rating in a report on Thursday, September 20th. Royal Bank of Canada reduced their target price on BorgWarner to $49.00 and set a “positive” rating for the company in a report on Wednesday, September 19th. Finally, Bank of America upgraded BorgWarner from an “underperform” rating to a “neutral” rating and set a $45.00 target price for the company in a report on Tuesday, October 23rd. One research analyst has rated the stock with a sell rating, five have assigned a hold rating and ten have given a buy rating to the company’s stock. The stock has a consensus rating of “Buy” and a consensus target price of $53.79.
BorgWarner (NYSE:BWA) last released its earnings results on Thursday, October 25th. The auto parts company reported $1.00 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.99 by $0.01. The company had revenue of $2.48 billion during the quarter, compared to analyst estimates of $2.45 billion. BorgWarner had a return on equity of 22.68% and a net margin of 5.26%.
The company also recently disclosed a quarterly dividend, which will be paid on Monday, December 17th. Investors of record on Monday, December 3rd will be issued a dividend of $0.17 per share. The ex-dividend date of this dividend is Friday, November 30th. This represents a $0.68 annualized dividend and a dividend yield of 1.90%. BorgWarner’s dividend payout ratio is 17.48%.
In related news, Director Alexis P. Michas sold 10,003 shares of the stock in a transaction on Monday, November 26th. The stock was sold at an average price of $39.99, for a total transaction of $400,019.97. Following the completion of the sale, the director now directly owns 78,223 shares in the company, valued at $3,128,137.77. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, VP Joel Wiegert sold 4,000 shares of the stock in a transaction on Wednesday, October 31st. The stock was sold at an average price of $39.57, for a total value of $158,280.00. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 38,475 shares of company stock valued at $1,526,992. 0.74% of the stock is owned by corporate insiders.
Several large investors have recently made changes to their positions in the stock. Vanguard Group Inc. raised its holdings in shares of BorgWarner by 2.5% during the third quarter. Vanguard Group Inc. now owns 21,712,547 shares of the auto parts company’s stock worth $928,863,000 after acquiring an additional 522,490 shares in the last quarter. BlackRock Inc. raised its holdings in shares of BorgWarner by 14.5% during the second quarter. BlackRock Inc. now owns 19,874,263 shares of the auto parts company’s stock worth $857,773,000 after acquiring an additional 2,517,481 shares in the last quarter. Diamond Hill Capital Management Inc. increased its position in BorgWarner by 8.7% during the third quarter. Diamond Hill Capital Management Inc. now owns 9,109,086 shares of the auto parts company’s stock worth $389,687,000 after buying an additional 728,700 shares during the last quarter. JPMorgan Chase & Co. increased its position in BorgWarner by 33.4% during the third quarter. JPMorgan Chase & Co. now owns 6,635,725 shares of the auto parts company’s stock worth $283,875,000 after buying an additional 1,661,618 shares during the last quarter. Finally, Alecta Pensionsforsakring Omsesidigt increased its position in BorgWarner by 4.7% during the third quarter. Alecta Pensionsforsakring Omsesidigt now owns 5,545,000 shares of the auto parts company’s stock worth $237,160,000 after buying an additional 250,000 shares during the last quarter. Institutional investors and hedge funds own 90.60% of the company’s stock.
BorgWarner Inc provides solutions for combustion, hybrid, and electric vehicles worldwide. It operates through two segments, Engine and Drivetrain. The Engine segment develops and manufactures turbochargers; and timing systems, such as timing chains, variable cam timing products, crankshaft and camshaft sprockets, tensioners, guides and snubbers, front-wheel drive transmission chains, four-wheel drive chains for light vehicles, and hybrid power transmission chains.
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