BorgWarner (NYSE:BWA) Given New $80.00 Price Target at Barclays

Key Points

• Barclays lowered BorgWarner’s price target from $85 to $80 while maintaining an “overweight” rating, implying approximately 54.5% upside from the stock’s $51.77 price.
• Analyst sentiment remains favorable: 11 analysts rate the stock a Buy and three rate it a Hold, resulting in a “Moderate Buy” consensus rating and an average price target of $79.
• BorgWarner exceeded quarterly earnings expectations with EPS of $1.39 versus the $1.25 consensus estimate, while revenue totaled $3.49 billion. The company also authorized a $1 billion share repurchase program covering up to 7.7% of outstanding shares.

BorgWarner (NYSE:BWA - Get Free Report) had its target price dropped by equities researchers at Barclays from $85.00 to $80.00 in a report released on Monday, Benzinga reports. The firm currently has an "overweight" rating on the auto parts company's stock. Barclays's price target points to a potential upside of 54.51% from the company's current price.

Several other equities research analysts also recently weighed in on BWA. Wall Street Zen raised shares of BorgWarner from a "hold" rating to a "buy" rating in a report on Sunday. Bank of America raised shares of BorgWarner from a "neutral" rating to a "buy" rating and raised their target price for the company from $78.00 to $85.00 in a research note on Thursday, October 15th. Deutsche Bank Aktiengesellschaft set a $80.00 price target on shares of BorgWarner in a research report on Thursday, August 6th. UBS Group reduced their price target on shares of BorgWarner from $95.00 to $91.00 and set a "buy" rating for the company in a research note on Wednesday, October 7th. Finally, Royal Bank Of Canada decreased their price objective on shares of BorgWarner from $87.00 to $75.00 and set an "outperform" rating for the company in a report on Friday. Eleven investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $79.00.

BorgWarner Stock Performance

Shares of BWA traded up $0.14 during midday trading on Monday, hitting $51.77. 1,450,798 shares of the stock traded hands, compared to its average volume of 2,755,777. BorgWarner has a 1-year low of $40.73 and a 1-year high of $78.82. The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.12 and a current ratio of 1.41. The firm has a market capitalization of $10.40 billion, a PE ratio of 22.05, a price-to-earnings-growth ratio of 0.75 and a beta of 1.20. The business's 50 day moving average price is $61.31 and its two-hundred day moving average price is $60.54.

BorgWarner (NYSE:BWA - Get Free Report) last announced its quarterly earnings results on Thursday, October 29th. The auto parts company reported $1.39 EPS for the quarter, beating the consensus estimate of $1.25 by $0.14. The company had revenue of $3.49 billion for the quarter, compared to analyst estimates of $3.50 billion. BorgWarner had a net margin of 3.36% and a return on equity of 19.61%. BorgWarner's revenue was down 2.9% compared to the same quarter last year. During the same quarter last year, the business earned $1.24 earnings per share. Equities research analysts predict that BorgWarner will post 5.27 EPS for the current fiscal year.

BorgWarner declared that its Board of Directors has initiated a share buyback program on Wednesday, August 5th that authorizes the company to buy back $1 billion in shares. This repurchase authorization authorizes the auto parts company to purchase up to 7.7% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's management believes its shares are undervalued.

Insider Transactions at BorgWarner

In related news, Director Rajesh Kalathur purchased 7,407 shares of the firm's stock in a transaction that occurred on Wednesday, August 19th. The stock was acquired at an average price of $67.59 per share, for a total transaction of $500,639.13. Following the transaction, the director directly owned 7,407 shares of the company's stock, valued at $500,639.13. This trade represents a ∞ increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CAO Amy B. Kulikowski sold 2,900 shares of BorgWarner stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $68.60, for a total value of $198,940.00. Following the completion of the transaction, the chief accounting officer directly owned 9,725 shares in the company, valued at $667,135. This represents a 22.97% decrease in their position. The SEC filing for this sale provides additional information. 0.76% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in BWA. Clearstead Trust LLC acquired a new stake in shares of BorgWarner during the second quarter valued at approximately $28,000. Ceredex Value Advisors LLC purchased a new position in BorgWarner during the 2nd quarter worth approximately $40,000. Fiduciary Financial Advisors purchased a new position in BorgWarner during the 2nd quarter worth approximately $49,000. William Mack & Associates Inc. purchased a new position in BorgWarner during the 3rd quarter worth approximately $46,000. Finally, Jones Financial Companies Lllp acquired a new position in BorgWarner during the second quarter valued at $57,000. 95.67% of the stock is currently owned by institutional investors and hedge funds.

BorgWarner Company Profile

BorgWarner Inc NYSE: BWA is a global automotive technology company that develops and manufactures propulsion and mobility systems for vehicle manufacturers and commercial vehicle customers. The company serves both internal-combustion and electrified vehicle markets, with a portfolio focused on improving vehicle efficiency, performance, emissions, and electrification.

Its products and technologies include turbochargers, emissions and thermal-management systems, transmission components, friction products, battery systems, battery charging equipment, power electronics, electric motors, and other electric-drive components.

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