BorgWarner Inc. (NYSE:BWA) Upgraded by Zacks Investment Research to “Hold”
Zacks Investment Research upgraded shares of BorgWarner Inc. (NYSE:BWA) from a sell rating to a hold rating in a research note released on Tuesday.
According to Zacks, “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 flows help the company return capital to shareholders and undertake acquisitions. Moreover, BorgWarner is poised to benefit from its expansion strategy. BorgWarner has outperformed the Zacks categorized Auto/Truck Original Equipment industry in the last three months. However, the company is facing foreign currency headwinds and pressure from original equipment manufacturers (OEM) to reduce prices, which might pose a threat to the company. Due to foreign currency fluctuations it might face a negative impact of upto $310 million in fiscal 2017.”
Other analysts have also issued research reports about the company. TheStreet raised BorgWarner from a c+ rating to a b rating in a report on Monday, May 1st. Jefferies Group LLC reaffirmed a buy rating and issued a $50.00 target price (up previously from $48.00) on shares of BorgWarner in a report on Saturday, April 29th. Deutsche Bank AG raised their target price on BorgWarner from $51.00 to $54.00 and gave the company a buy rating in a report on Friday, April 28th. ValuEngine lowered BorgWarner from a strong-buy rating to a buy rating in a report on Friday, June 2nd. Finally, BidaskClub lowered BorgWarner from a strong-buy rating to a buy rating in a report on Wednesday, June 21st. Three analysts have rated the stock with a sell rating, eleven have issued a hold rating, five have given a buy rating and one has issued a strong buy rating to the company. BorgWarner currently has an average rating of Hold and a consensus target price of $41.25.
BorgWarner (BWA) opened at 44.92 on Tuesday. The stock has a market cap of $9.53 billion, a PE ratio of 66.85 and a beta of 1.72. BorgWarner has a 12-month low of $31.49 and a 12-month high of $47.00. The firm has a 50-day moving average price of $43.47 and a 200-day moving average price of $41.65.
BorgWarner (NYSE:BWA) last issued its quarterly earnings data on Thursday, April 27th. The auto parts company reported $0.91 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.84 by $0.07. BorgWarner had a return on equity of 20.10% and a net margin of 1.56%. The business had revenue of $2.41 billion for the quarter, compared to the consensus estimate of $2.26 billion. During the same period last year, the business earned $0.80 EPS. The firm’s revenue was up 6.1% compared to the same quarter last year. Analysts forecast that BorgWarner will post $3.58 EPS for the current fiscal year.
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In related news, insider Ronald T. Hundzinski sold 3,776 shares of the business’s stock in a transaction on Friday, May 5th. The stock was sold at an average price of $41.53, for a total value of $156,817.28. Following the sale, the insider now owns 141,958 shares of the company’s stock, valued at approximately $5,895,515.74. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Dennis C. Cuneo sold 1,000 shares of the business’s stock in a transaction on Tuesday, June 13th. The shares were sold at an average price of $44.06, for a total value of $44,060.00. Following the completion of the sale, 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. 0.66% of the stock is owned by insiders.
A number of hedge funds have recently made changes to their positions in BWA. APG Asset Management N.V. raised its stake in shares of BorgWarner by 16.5% in the second quarter. APG Asset Management N.V. now owns 1,291,651 shares of the auto parts company’s stock valued at $54,714,000 after buying an additional 182,957 shares in the last quarter. Aperio Group LLC raised its stake in shares of BorgWarner by 3.8% in the second quarter. Aperio Group LLC now owns 140,742 shares of the auto parts company’s stock valued at $5,962,000 after buying an additional 5,116 shares in the last quarter. Louisiana State Employees Retirement System raised its stake in shares of BorgWarner by 0.8% in the second quarter. Louisiana State Employees Retirement System now owns 12,400 shares of the auto parts company’s stock valued at $525,000 after buying an additional 100 shares in the last quarter. Advisors Capital Management LLC raised its stake in shares of BorgWarner by 3.1% in the second quarter. Advisors Capital Management LLC now owns 50,279 shares of the auto parts company’s stock valued at $2,130,000 after buying an additional 1,525 shares in the last quarter. Finally, Exane Derivatives bought a new stake in shares of BorgWarner during the second quarter valued at approximately $135,000. 91.95% 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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