BorgWarner Inc. (NYSE:BWA) Given Consensus Recommendation of “Moderate Buy” by Analysts

BorgWarner Inc. (NYSE:BWA) has earned an average recommendation of “Moderate Buy” from the seventeen analysts that are presently covering the stock, Marketbeat Ratings reports. Seven equities research analysts have rated the stock with a hold recommendation and ten have given a buy recommendation to the company. The average twelve-month price objective among analysts that have covered the stock in the last year is $41.29.

A number of research analysts have issued reports on the stock. Barclays boosted their price objective on shares of BorgWarner from $44.00 to $45.00 and gave the company an “overweight” rating in a research report on Monday, May 6th. StockNews.com downgraded shares of BorgWarner from a “buy” rating to a “hold” rating in a research note on Tuesday. Citigroup cut their price objective on BorgWarner from $41.00 to $36.00 and set a “neutral” rating on the stock in a research report on Friday, July 12th. Wells Fargo & Company decreased their target price on BorgWarner from $45.00 to $44.00 and set an “overweight” rating for the company in a research report on Tuesday, June 25th. Finally, JPMorgan Chase & Co. dropped their price target on BorgWarner from $52.00 to $50.00 and set an “overweight” rating on the stock in a research report on Monday, July 22nd.

BorgWarner Stock Performance

BorgWarner stock opened at $32.82 on Monday. The company has a current ratio of 1.54, a quick ratio of 1.20 and a debt-to-equity ratio of 0.55. The firm has a market cap of $7.48 billion, a P/E ratio of 12.43, a P/E/G ratio of 0.73 and a beta of 1.22. BorgWarner has a 1-year low of $29.51 and a 1-year high of $46.77. The firm has a 50-day moving average of $33.59 and a 200-day moving average of $33.47.

BorgWarner (NYSE:BWA) last released its quarterly earnings data on Thursday, May 2nd. The auto parts company reported $1.03 earnings per share for the quarter, topping the consensus estimate of $0.87 by $0.16. The business had revenue of $3.60 billion during the quarter, compared to analysts’ expectations of $3.51 billion. BorgWarner had a return on equity of 15.33% and a net margin of 4.02%. The business’s revenue was up 6.3% on a year-over-year basis. During the same quarter last year, the business posted $1.09 EPS. Sell-side analysts expect that BorgWarner will post 4.03 EPS for the current year.

BorgWarner declared that its board has initiated a stock repurchase plan on Thursday, May 2nd that allows the company to repurchase $500.00 million in outstanding shares. This repurchase authorization allows the auto parts company to repurchase up to 6% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s management believes its stock is undervalued.

BorgWarner Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, September 16th. Shareholders of record on Tuesday, September 3rd will be paid a dividend of $0.11 per share. The ex-dividend date of this dividend is Tuesday, September 3rd. This represents a $0.44 dividend on an annualized basis and a yield of 1.34%. BorgWarner’s dividend payout ratio is currently 16.67%.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of BWA. Teachers Retirement System of The State of Kentucky raised its holdings in shares of BorgWarner by 19.1% during the fourth quarter. Teachers Retirement System of The State of Kentucky now owns 568,303 shares of the auto parts company’s stock valued at $20,373,000 after purchasing an additional 91,164 shares during the last quarter. Sumitomo Mitsui Trust Holdings Inc. grew its stake in shares of BorgWarner by 9.4% during the 4th quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 699,974 shares of the auto parts company’s stock valued at $25,094,000 after acquiring an additional 59,925 shares during the period. Sei Investments Co. increased its holdings in BorgWarner by 13.2% in the 4th quarter. Sei Investments Co. now owns 1,850,749 shares of the auto parts company’s stock worth $66,349,000 after acquiring an additional 216,373 shares in the last quarter. Edgestream Partners L.P. lifted its holdings in BorgWarner by 419.7% during the first quarter. Edgestream Partners L.P. now owns 66,521 shares of the auto parts company’s stock valued at $2,311,000 after purchasing an additional 53,721 shares in the last quarter. Finally, Illinois Municipal Retirement Fund boosted its position in shares of BorgWarner by 84.3% in the fourth quarter. Illinois Municipal Retirement Fund now owns 260,556 shares of the auto parts company’s stock worth $9,341,000 after purchasing an additional 119,170 shares during the period. Hedge funds and other institutional investors own 95.67% 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.