BorgWarner (NYSE:BWA) Downgraded by StockNews.com

StockNews.com cut shares of BorgWarner (NYSE:BWA) from a buy rating to a hold rating in a research report sent to investors on Wednesday morning.

A number of other equities analysts have also issued reports on BWA. TD Cowen raised their target price on BorgWarner from $36.00 to $40.00 and gave the stock a buy rating in a research note on Friday, May 3rd. Citigroup raised their price target on shares of BorgWarner from $33.00 to $41.00 and gave the company a neutral rating in a research note on Monday, May 6th. Piper Sandler began coverage on shares of BorgWarner in a research note on Friday, March 15th. They issued an overweight rating and a $43.00 price target on the stock. Oppenheimer raised their price target on shares of BorgWarner from $39.00 to $40.00 and gave the company an outperform rating in a research note on Friday, May 3rd. Finally, Barclays raised their target price on shares of BorgWarner from $44.00 to $45.00 and gave the stock an overweight rating in a research note on Monday, May 6th. Eight analysts have rated the stock with a hold rating and ten have given a buy rating to the stock. According to data from MarketBeat, BorgWarner has an average rating of Moderate Buy and an average price target of $43.71.

BorgWarner Stock Up 0.7 %

Shares of NYSE:BWA opened at $32.23 on Wednesday. BorgWarner has a 52-week low of $29.51 and a 52-week high of $50.04. The stock has a market cap of $7.34 billion, a P/E ratio of 12.21, a price-to-earnings-growth ratio of 0.79 and a beta of 1.28. The business’s 50 day moving average is $34.81 and its 200 day moving average is $33.84. 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 (NYSE:BWA) last posted 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 company had revenue of $3.60 billion during the quarter, compared to analyst estimates of $3.51 billion. BorgWarner had a return on equity of 15.33% and a net margin of 4.02%. BorgWarner’s revenue 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. Sell-side analysts predict that BorgWarner will post 4.05 EPS for the current year.

BorgWarner Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, June 17th. Shareholders of record on Monday, June 3rd were paid a $0.11 dividend. The ex-dividend date was Monday, June 3rd. This represents a $0.44 annualized dividend and a dividend yield of 1.37%. BorgWarner’s dividend payout ratio (DPR) is 16.67%.

BorgWarner declared that its Board of Directors has approved a share repurchase program on Thursday, May 2nd that permits the company to buyback $500.00 million in shares. This buyback authorization permits the auto parts company to buy up to 6% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s management believes its stock is undervalued.

Institutional Investors Weigh In On BorgWarner

Institutional investors and hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. raised its holdings in shares of BorgWarner by 1.2% in the fourth quarter. Vanguard Group Inc. now owns 27,147,545 shares of the auto parts company’s stock valued at $973,239,000 after buying an additional 331,401 shares during the last quarter. Victory Capital Management Inc. grew its position in BorgWarner by 10.9% during the fourth quarter. Victory Capital Management Inc. now owns 9,668,438 shares of the auto parts company’s stock worth $346,614,000 after buying an additional 948,659 shares during the period. American Century Companies Inc. grew its position in BorgWarner by 18.3% during the third quarter. American Century Companies Inc. now owns 4,189,541 shares of the auto parts company’s stock worth $169,132,000 after buying an additional 648,633 shares during the period. Earnest Partners LLC grew its position in shares of BorgWarner by 1.1% in the first quarter. Earnest Partners LLC now owns 3,310,639 shares of the auto parts company’s stock valued at $115,012,000 after purchasing an additional 35,709 shares during the last quarter. Finally, Northern Trust Corp grew its position in shares of BorgWarner by 6.5% in the third quarter. Northern Trust Corp now owns 2,780,695 shares of the auto parts company’s stock valued at $112,257,000 after purchasing an additional 170,842 shares during the last quarter. 95.67% of the stock is owned by hedge funds and other institutional investors.

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.