BorgWarner Inc. (BWA) Upgraded to “Buy” by Zacks Investment Research
Zacks Investment Research upgraded shares of BorgWarner Inc. (NYSE:BWA) from a hold rating to a buy rating in a report released on Tuesday. The firm currently has $50.00 price target on the auto parts company’s stock.
According to Zacks, “BorgWarner earnings and revenues beat the Zacks Consensus Estimate in the second quarter. Moreover, high organic net sales growth expectations are likely to aid BorgWarner going forward. Huge business opportunities in Asia, the Americas and Europe in the next three years are anticipated to contribute to a major portion of growth. Also, a healthy balance sheet and ample cash flow help the company to return capital to its shareholders’ and undertake acquisitions. However, its inability to pass on any rise in raw materials to OEMs, is adversely impacting its profit. Moreover, foreign currency fluctuations and business divestitures are other headwinds BorgWarner has been facing. Also year-to-date, its share has underperformed the industry it belongs to.”
BWA has been the subject of a number of other research reports. Bank of America Corporation restated an underperform rating and issued a $27.00 price objective (down previously from $30.00) on shares of BorgWarner in a research note on Friday, June 16th. BMO Capital Markets restated an outperform rating and issued a $55.00 price objective (up previously from $50.00) on shares of BorgWarner in a research note on Friday, July 28th. Morgan Stanley dropped their price objective on shares of BorgWarner from $34.00 to $32.00 and set an underweight rating for the company in a research note on Friday, June 9th. ValuEngine cut shares of BorgWarner from a strong-buy rating to a buy rating in a research note on Friday, June 2nd. Finally, Deutsche Bank AG reiterated a buy rating and set a $54.00 target price on shares of BorgWarner in a research report on Wednesday, May 31st. Three equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating and seven have assigned a buy rating to the stock. The stock presently has an average rating of Hold and an average target price of $43.20.
BorgWarner (NYSE BWA) opened at 44.37 on Tuesday. BorgWarner has a 1-year low of $33.09 and a 1-year high of $48.03. The firm has a 50-day moving average of $45.61 and a 200 day moving average of $42.58. The firm has a market cap of $9.36 billion, a P/E ratio of 49.46 and a beta of 1.73.
BorgWarner (NYSE:BWA) last announced its quarterly earnings data on Thursday, July 27th. The auto parts company reported $0.96 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.89 by $0.07. BorgWarner had a net margin of 2.06% and a return on equity of 20.75%. The company had revenue of $2.39 billion during the quarter, compared to analysts’ expectations of $2.27 billion. During the same quarter in the prior year, the company posted $0.84 EPS. The business’s revenue was up 2.5% on a year-over-year basis. On average, analysts predict that BorgWarner will post $3.70 EPS for the current year.
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The firm also recently announced a quarterly dividend, which will be paid on Friday, September 15th. Stockholders of record on Friday, September 1st will be paid a $0.14 dividend. This represents a $0.56 annualized dividend and a dividend yield of 1.26%. The ex-dividend date of this dividend is Wednesday, August 30th. BorgWarner’s dividend payout ratio (DPR) is presently 62.92%.
In other news, insider Brady D. Ericson sold 11,052 shares of the firm’s stock in a transaction dated Wednesday, August 16th. The shares were sold at an average price of $45.38, for a total value of $501,539.76. Following the transaction, the insider now owns 23,418 shares of the company’s stock, valued at approximately $1,062,708.84. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Dennis C. Cuneo sold 1,000 shares of the firm’s stock in a transaction dated Tuesday, June 13th. The shares were sold at an average price of $44.06, for a total transaction of $44,060.00. Following the completion of the transaction, the director now directly owns 13,398 shares in the company, valued at approximately $590,315.88. The disclosure for this sale can be found here. Insiders sold a total of 15,052 shares of company stock worth $680,570 in the last ninety days. Insiders own 0.66% of the company’s stock.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in BWA. CIBC Asset Management Inc raised its position in BorgWarner by 0.3% in the second quarter. CIBC Asset Management Inc now owns 19,211 shares of the auto parts company’s stock valued at $814,000 after buying an additional 61 shares during the last quarter. Hanson & Doremus Investment Management raised its position in BorgWarner by 0.9% in the second quarter. Hanson & Doremus Investment Management now owns 8,895 shares of the auto parts company’s stock valued at $377,000 after buying an additional 75 shares during the last quarter. Raymond James Financial Services Advisors Inc. raised its position in BorgWarner by 0.4% in the first quarter. Raymond James Financial Services Advisors Inc. now owns 18,846 shares of the auto parts company’s stock valued at $788,000 after buying an additional 77 shares during the last quarter. Contravisory Investment Management Inc. raised its position in BorgWarner by 1.3% in the second quarter. Contravisory Investment Management Inc. now owns 6,356 shares of the auto parts company’s stock valued at $269,000 after buying an additional 79 shares during the last quarter. Finally, Cutter & CO Brokerage Inc. raised its position in BorgWarner by 1.7% in the second quarter. Cutter & CO Brokerage Inc. now owns 5,270 shares of the auto parts company’s stock valued at $223,000 after buying an additional 90 shares during the last quarter. 91.06% of the stock is currently owned by institutional investors and hedge funds.
BorgWarner Company Profile
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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