Stock Repurchase Program Initiated by BorgWarner (NYSE:BWA) Board of Directors

BorgWarner (NYSE:BWA) announced that its board has approved a share buyback program on Thursday, May 2nd, RTT News reports. The company plans to repurchase $500.00 million in shares. This repurchase authorization allows the auto parts company to buy up to 6% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s management believes its shares are undervalued.

Wall Street Analyst Weigh In

Several research firms recently commented on BWA. Barclays lifted their price objective on BorgWarner from $44.00 to $45.00 and gave the stock an “overweight” rating in a report on Monday. JPMorgan Chase & Co. reduced their price objective on BorgWarner from $59.00 to $52.00 and set an “overweight” rating for the company in a research report on Thursday, January 25th. Robert W. Baird boosted their price target on BorgWarner from $36.00 to $40.00 and gave the company a “neutral” rating in a research note on Friday. TD Cowen raised their price objective on shares of BorgWarner from $36.00 to $40.00 and gave the stock a “buy” rating in a report on Friday. Finally, TheStreet cut shares of BorgWarner from a “b-” rating to a “c+” rating in a report on Thursday, February 8th. Seven equities research analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $43.76.

BorgWarner Price Performance

NYSE BWA traded down $0.14 during trading hours on Tuesday, reaching $36.80. The company’s stock had a trading volume of 2,677,064 shares, compared to its average volume of 2,895,630. The company has a quick ratio of 1.20, a current ratio of 1.54 and a debt-to-equity ratio of 0.55. BorgWarner has a 1 year low of $29.51 and a 1 year high of $50.04. The firm’s 50-day moving average price is $33.23 and its 200-day moving average price is $33.68. The company has a market capitalization of $8.38 billion, a price-to-earnings ratio of 13.99, a PEG ratio of 1.08 and a beta of 1.30.

BorgWarner (NYSE:BWA) last issued its earnings results on Thursday, May 2nd. The auto parts company reported $1.03 earnings per share for the quarter, topping analysts’ consensus estimates of $0.87 by $0.16. The firm had revenue of $3.60 billion during the quarter, compared to analyst estimates of $3.51 billion. BorgWarner had a net margin of 4.02% and a return on equity of 15.33%. BorgWarner’s revenue for the quarter was up 6.3% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.09 earnings per share. On average, equities research analysts predict that BorgWarner will post 3.94 EPS for the current fiscal year.

BorgWarner Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, June 17th. Investors of record on Monday, June 3rd will be given a $0.11 dividend. The ex-dividend date of this dividend is Monday, June 3rd. This represents a $0.44 dividend on an annualized basis and a dividend yield of 1.20%. BorgWarner’s dividend payout ratio is currently 16.67%.

Insider Activity at BorgWarner

In related news, CAO Tonit M. Calaway sold 35,603 shares of the firm’s stock in a transaction on Monday, February 12th. The shares were sold at an average price of $32.15, for a total value of $1,144,636.45. Following the completion of the transaction, the chief accounting officer now directly owns 83,348 shares of the company’s stock, valued at $2,679,638.20. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. In other BorgWarner news, VP Stefan Demmerle sold 3,000 shares of the business’s stock in a transaction that occurred on Wednesday, March 13th. The stock was sold at an average price of $33.00, for a total transaction of $99,000.00. Following the sale, the vice president now directly owns 249,013 shares of the company’s stock, valued at $8,217,429. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Tonit M. Calaway sold 35,603 shares of the firm’s stock in a transaction that occurred on Monday, February 12th. The shares were sold at an average price of $32.15, for a total value of $1,144,636.45. Following the completion of the sale, the chief accounting officer now directly owns 83,348 shares of the company’s stock, valued at $2,679,638.20. The disclosure for this sale can be found here. Over the last three months, insiders sold 287,503 shares of company stock valued at $9,015,478. Insiders own 0.63% 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.