BorgWarner Inc. (NYSE:BWA) Announces Dividend Increase - $0.17 Per Share

Key Points

• BorgWarner Inc. announced a significant dividend increase of 54.5%, raising its quarterly dividend from $0.11 to $0.17 per share, with an annualized dividend of $0.68.
• The company's earnings per share (EPS) for the last quarter was $1.21, surpassing the consensus estimate of $1.04, indicating strong financial performance.
• Analysts have varied price targets for BorgWarner, with an average target of $39.07, reflecting a mix of "buy" and "neutral" ratings from several equity research firms.

BorgWarner Inc. (NYSE:BWA - Get Free Report) declared a quarterly dividend on Thursday, July 31st, RTT News reports. Stockholders of record on Tuesday, September 2nd will be paid a dividend of 0.17 per share by the auto parts company on Monday, September 15th. This represents a $0.68 annualized dividend and a dividend yield of 1.84%. This is a 54.5% increase from BorgWarner's previous quarterly dividend of $0.11.

BorgWarner has a dividend payout ratio of 9.5% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect BorgWarner to earn $4.87 per share next year, which means the company should continue to be able to cover its $0.44 annual dividend with an expected future payout ratio of 9.0%.

BorgWarner Price Performance

Shares of NYSE BWA opened at $36.97 on Thursday. The stock has a market cap of $8.12 billion, a P/E ratio of 29.18, a P/E/G ratio of 1.63 and a beta of 1.09. The company has a current ratio of 1.97, a quick ratio of 1.60 and a debt-to-equity ratio of 0.65. The stock has a 50 day moving average of $34.08 and a two-hundred day moving average of $31.15. BorgWarner has a twelve month low of $24.40 and a twelve month high of $37.29.

BorgWarner (NYSE:BWA - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The auto parts company reported $1.21 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.04 by $0.17. BorgWarner had a return on equity of 16.13% and a net margin of 2.06%. BorgWarner's revenue for the quarter was up 1.0% compared to the same quarter last year. During the same period in the prior year, the company earned $1.19 EPS. On average, research analysts forecast that BorgWarner will post 4.28 earnings per share for the current year.

Analysts Set New Price Targets

Several analysts recently issued reports on the company. UBS Group raised their price target on BorgWarner from $35.00 to $38.00 and gave the stock a "neutral" rating in a report on Monday, July 14th. Piper Sandler reiterated an "overweight" rating and issued a $37.00 price objective (up previously from $36.00) on shares of BorgWarner in a research report on Thursday, May 22nd. Wells Fargo & Company increased their target price on BorgWarner from $44.00 to $45.00 and gave the stock an "overweight" rating in a report on Tuesday, July 1st. The Goldman Sachs Group upgraded BorgWarner from a "neutral" rating to a "buy" rating and increased their price objective for the company from $31.00 to $34.00 in a research report on Thursday, April 10th. Finally, Robert W. Baird raised their price target on BorgWarner from $32.00 to $39.00 and gave the stock a "neutral" rating in a research report on Friday, July 11th. Six equities research analysts have rated the stock with a hold rating, ten have issued a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $39.07.

Insiders Place Their Bets

In related news, VP Isabelle Mckenzie sold 5,000 shares of the company's stock in a transaction on Friday, May 16th. The shares were sold at an average price of $33.25, for a total value of $166,250.00. Following the completion of the transaction, the vice president directly owned 63,445 shares in the company, valued at approximately $2,109,546.25. The trade was a 7.31% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Tonit M. Calaway sold 27,736 shares of the company's stock in a transaction dated Monday, May 12th. The stock was sold at an average price of $32.83, for a total transaction of $910,572.88. Following the completion of the sale, the executive vice president owned 214,521 shares in the company, valued at approximately $7,042,724.43. This trade represents a 11.45% decrease in their position. The disclosure for this sale can be found here. Insiders own 0.45% of the company's stock.

Institutional Inflows and Outflows

An institutional investor recently raised its position in BorgWarner stock. Acadian Asset Management LLC lifted its holdings in BorgWarner Inc. (NYSE:BWA - Free Report) by 23.7% during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 8,979 shares of the auto parts company's stock after buying an additional 1,723 shares during the period. Acadian Asset Management LLC's holdings in BorgWarner were worth $257,000 at the end of the most recent reporting period. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.