BorgWarner Inc. (NYSE:BWA) Receives $39.07 Consensus Target Price from Analysts

BorgWarner Inc. (NYSE:BWA - Get Free Report) has earned an average recommendation of "Moderate Buy" from the sixteen analysts that are covering the company, MarketBeat.com reports. Six analysts have rated the stock with a hold recommendation and ten have issued a buy recommendation on the company. The average 1-year price objective among brokerages that have issued a report on the stock in the last year is $39.64.

A number of equities analysts recently weighed in on BWA shares. UBS Group boosted their price target on shares of BorgWarner from $35.00 to $38.00 and gave the stock a "neutral" rating in a research report on Monday, July 14th. Wells Fargo & Company boosted their price target on shares of BorgWarner from $45.00 to $46.00 and gave the stock an "overweight" rating in a research report on Friday. Bank of America boosted their price target on shares of BorgWarner from $35.00 to $41.00 and gave the stock a "buy" rating in a research report on Monday, June 16th. Wall Street Zen upgraded shares of BorgWarner from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 12th. Finally, Guggenheim decreased their target price on shares of BorgWarner from $38.00 to $33.00 and set a "buy" rating on the stock in a report on Tuesday, April 22nd.

Insider Activity at BorgWarner

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

Institutional Investors Weigh In On BorgWarner

Several large investors have recently added to or reduced their stakes in the business. Dimensional Fund Advisors LP increased its stake in BorgWarner by 2.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 11,568,627 shares of the auto parts company's stock worth $331,429,000 after buying an additional 284,587 shares during the period. Invesco Ltd. increased its stake in BorgWarner by 10.2% during the 4th quarter. Invesco Ltd. now owns 6,795,020 shares of the auto parts company's stock worth $216,014,000 after buying an additional 628,930 shares during the period. LSV Asset Management increased its stake in BorgWarner by 36.7% during the 1st quarter. LSV Asset Management now owns 5,889,080 shares of the auto parts company's stock worth $168,722,000 after buying an additional 1,580,935 shares during the period. Turtle Creek Asset Management Inc. increased its stake in BorgWarner by 7.0% during the 4th quarter. Turtle Creek Asset Management Inc. now owns 4,078,780 shares of the auto parts company's stock worth $129,664,000 after buying an additional 267,250 shares during the period. Finally, Earnest Partners LLC increased its stake in BorgWarner by 0.7% during the 4th quarter. Earnest Partners LLC now owns 3,927,415 shares of the auto parts company's stock worth $124,853,000 after buying an additional 27,960 shares during the period. 95.67% of the stock is owned by hedge funds and other institutional investors.

BorgWarner Price Performance

BWA traded up $0.71 on Friday, reaching $37.51. 2,840,282 shares of the company's stock were exchanged, compared to its average volume of 1,798,669. The stock has a market cap of $8.24 billion, a PE ratio of 39.90, a P/E/G ratio of 1.71 and a beta of 1.10. BorgWarner has a twelve month low of $24.40 and a twelve month high of $37.57. The stock's fifty day moving average price is $34.25 and its 200-day moving average price is $31.22. The company has a debt-to-equity ratio of 0.64, a current ratio of 2.02 and a quick ratio of 1.60.

BorgWarner (NYSE:BWA - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share for the quarter, topping analysts' consensus estimates of $1.06 by $0.15. The firm had revenue of $3.64 billion for the quarter, compared to analyst estimates of $3.56 billion. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. BorgWarner's quarterly revenue was up 1.0% on a year-over-year basis. During the same period in the previous year, the business posted $1.19 earnings per share. Sell-side analysts expect that BorgWarner will post 4.28 EPS for the current year.

BorgWarner declared that its Board of Directors has approved a stock repurchase program on Thursday, July 31st that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the auto parts company to repurchase up to 13.2% of its stock through open market purchases. Stock repurchase programs are often an indication that the company's board believes its stock is undervalued.

BorgWarner Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd will be issued a $0.17 dividend. This is a positive change from BorgWarner's previous quarterly dividend of $0.11. This represents a $0.68 annualized dividend and a dividend yield of 1.8%. BorgWarner's dividend payout ratio is currently 35.20%.

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.