BorgWarner (NYSE:BWA) Downgraded by StockNews.com to “Hold”

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

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

BorgWarner Stock Down 0.8 %

Shares of NYSE:BWA opened at $32.60 on Wednesday. The stock has a market cap of $7.43 billion, a P/E ratio of 12.35, a P/E/G ratio of 0.80 and a beta of 1.28. The firm has a fifty day moving average price of $34.83 and a 200 day moving average price of $33.86. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.54 and a quick ratio of 1.20. BorgWarner has a 1-year low of $29.51 and a 1-year high of $50.04.

BorgWarner (NYSE:BWA) last announced its quarterly earnings data on Thursday, May 2nd. The auto parts company reported $1.03 EPS 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 the consensus estimate of $3.51 billion. BorgWarner had a net margin of 4.02% and a return on equity of 15.33%. BorgWarner’s quarterly revenue was up 6.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.09 EPS. Sell-side analysts predict that BorgWarner will post 4.05 EPS for the current year.

BorgWarner announced that its board has initiated a stock buyback program on Thursday, May 2nd that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the auto parts company to purchase up to 6% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.

BorgWarner Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, June 17th. Shareholders of record on Monday, June 3rd were paid a dividend of $0.11 per share. The ex-dividend date was Monday, June 3rd. This represents a $0.44 annualized dividend and a dividend yield of 1.35%. BorgWarner’s dividend payout ratio is currently 16.67%.

Institutional Investors Weigh In On BorgWarner

Hedge funds have recently modified their holdings of the company. EdgeRock Capital LLC acquired a new stake in shares of BorgWarner during the 4th quarter worth about $30,000. Riverview Trust Co acquired a new stake in shares of BorgWarner in the first quarter worth approximately $30,000. Sound Income Strategies LLC acquired a new stake in shares of BorgWarner in the fourth quarter worth approximately $32,000. Bruce G. Allen Investments LLC acquired a new stake in shares of BorgWarner in the fourth quarter worth approximately $33,000. Finally, LRI Investments LLC acquired a new stake in shares of BorgWarner in the first quarter worth approximately $35,000. 95.67% of the stock is owned by institutional investors and hedge funds.

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.