BorgWarner (NYSE:BWA) Shares Gap Up on Better-Than-Expected Earnings

BorgWarner Inc. (NYSE:BWA) shares gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $32.45, but opened at $36.00. BorgWarner shares last traded at $35.26, with a volume of 403,568 shares traded.

The auto parts company reported $1.19 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.00 by $0.19. The business had revenue of $3.60 billion during the quarter, compared to analyst estimates of $3.69 billion. BorgWarner had a net margin of 4.97% and a return on equity of 15.66%. The business’s revenue was down 20.3% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.35 earnings per share.

BorgWarner Dividend Announcement

The business also recently announced 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 is Tuesday, September 3rd. This represents a $0.44 annualized dividend and a yield of 1.33%. BorgWarner’s payout ratio is 16.67%.

BorgWarner announced that its Board of Directors has authorized a stock buyback plan on Thursday, May 2nd that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the auto parts company to reacquire up to 6% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s leadership believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on BWA. Oppenheimer lifted their target price on BorgWarner from $39.00 to $40.00 and gave the stock an “outperform” rating in a report on Friday, May 3rd. Bank of America reduced their price objective on shares of BorgWarner from $50.00 to $45.00 and set a “buy” rating for the company in a research note on Monday, July 22nd. Citigroup cut their price target on shares of BorgWarner from $41.00 to $36.00 and set a “neutral” rating on the stock in a report on Friday, July 12th. UBS Group upped their price target on shares of BorgWarner from $41.00 to $42.00 and gave the company a “buy” rating in a research report on Wednesday, July 10th. Finally, JPMorgan Chase & Co. lowered their price objective on shares of BorgWarner from $52.00 to $50.00 and set an “overweight” rating on the stock in a research report on Monday, July 22nd. Eight analysts have rated the stock with a hold rating and ten have assigned a buy rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $41.35.

Institutional Investors Weigh In On BorgWarner

A number of institutional investors have recently bought and sold shares of the business. Trillium Asset Management LLC grew its position in BorgWarner by 2.1% in the first quarter. Trillium Asset Management LLC now owns 13,788 shares of the auto parts company’s stock valued at $479,000 after acquiring an additional 283 shares during the period. Empirical Finance LLC increased its position in shares of BorgWarner by 3.5% during the 1st quarter. Empirical Finance LLC now owns 8,456 shares of the auto parts company’s stock worth $294,000 after purchasing an additional 285 shares in the last quarter. BNP PARIBAS ASSET MANAGEMENT Holding S.A. lifted its holdings in BorgWarner by 1.8% during the 1st quarter. BNP PARIBAS ASSET MANAGEMENT Holding S.A. now owns 19,200 shares of the auto parts company’s stock valued at $667,000 after purchasing an additional 335 shares during the last quarter. First Pacific Financial boosted its position in BorgWarner by 3.6% in the second quarter. First Pacific Financial now owns 9,763 shares of the auto parts company’s stock valued at $315,000 after buying an additional 340 shares in the last quarter. Finally, Verdence Capital Advisors LLC grew its stake in BorgWarner by 3.8% during the first quarter. Verdence Capital Advisors LLC now owns 9,459 shares of the auto parts company’s stock worth $329,000 after buying an additional 343 shares during the last quarter. Institutional investors and hedge funds own 95.67% of the company’s stock.

BorgWarner Trading Down 2.9 %

The company’s fifty day moving average price is $33.34 and its two-hundred day moving average price is $33.47. The company has a quick ratio of 1.20, a current ratio of 1.54 and a debt-to-equity ratio of 0.55. The company has a market cap of $7.53 billion, a price-to-earnings ratio of 12.52, a price-to-earnings-growth ratio of 0.81 and a beta of 1.22.

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.