BorgWarner (NYSE:BWA) Reaches New 52-Week High - Here's Why

Key Points

• BorgWarner's stock reached a new 52-week high of $38.53 during mid-day trading, closing at $38.37 with a trading volume of 54,579 shares.
• Several analyst firms have raised their price targets for BorgWarner, with Barclays setting a new target of $45.00 while maintaining an "overweight" rating.
• The company announced an increase in its quarterly dividend from $0.11 to $0.17 per share, reflecting a growing commitment to returning value to shareholders.

BorgWarner Inc. (NYSE:BWA - Get Free Report) hit a new 52-week high during mid-day trading on Friday . The company traded as high as $38.53 and last traded at $38.37, with a volume of 54579 shares. The stock had previously closed at $38.20.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on the stock. Wells Fargo & Company raised their price target on shares of BorgWarner from $45.00 to $46.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. JPMorgan Chase & Co. raised their price target on shares of BorgWarner from $43.00 to $45.00 and gave the stock an "overweight" rating in a report on Monday, August 4th. Robert W. Baird increased their price objective on shares of BorgWarner from $32.00 to $39.00 and gave the stock a "neutral" rating in a research report on Friday, July 11th. Wall Street Zen raised shares of BorgWarner from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 12th. Finally, Evercore ISI increased their price objective on shares of BorgWarner from $38.00 to $42.00 and gave the stock an "outperform" rating in a research report on Monday, August 4th. 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. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $39.50.

BorgWarner Price Performance

The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.66 and a current ratio of 2.02. The company has a market cap of $8.33 billion, a PE ratio of 40.95, a PEG ratio of 1.16 and a beta of 1.10. The company's 50-day simple moving average is $34.75 and its 200 day simple moving average is $31.41.

BorgWarner (NYSE:BWA - Get Free Report) last issued its quarterly earnings results on Thursday, July 31st. The auto parts company reported $1.21 EPS for the quarter, beating the consensus estimate of $1.06 by $0.15. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. The company had revenue of $3.64 billion during the quarter, compared to analysts' expectations of $3.56 billion. During the same quarter last year, the company posted $1.19 EPS. The firm's revenue was up 1.0% compared to the same quarter last year. On average, sell-side analysts predict that BorgWarner Inc. will post 4.28 earnings per share for the current fiscal year.

BorgWarner Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd will be given a $0.17 dividend. This represents a $0.68 annualized dividend and a yield of 1.8%. This is a boost from BorgWarner's previous quarterly dividend of $0.11. BorgWarner's dividend payout ratio (DPR) is currently 46.81%.

BorgWarner declared that its Board of Directors has approved a stock buyback plan on Thursday, July 31st that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the auto parts company to reacquire up to 13.2% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's leadership believes its stock is undervalued.

Insider Activity at BorgWarner

In other news, EVP Tonit M. Calaway sold 27,736 shares of the firm's stock in a transaction on Monday, May 12th. The shares were sold at an average price of $32.83, for a total value of $910,572.88. Following the sale, the executive vice president directly 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Isabelle Mckenzie sold 5,000 shares of the firm's stock in a transaction on Friday, May 16th. The shares were sold at an average price of $33.25, for a total transaction of $166,250.00. Following the completion of the sale, the vice president owned 63,445 shares in the company, valued at $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. Company insiders own 0.63% of the company's stock.

Institutional Investors Weigh In On BorgWarner

Hedge funds and other institutional investors have recently modified their holdings of the company. Global X Japan Co. Ltd. raised its holdings in shares of BorgWarner by 133.4% in the 1st quarter. Global X Japan Co. Ltd. now owns 915 shares of the auto parts company's stock valued at $26,000 after purchasing an additional 523 shares in the last quarter. Caitong International Asset Management Co. Ltd raised its holdings in shares of BorgWarner by 1,133.3% in the 2nd quarter. Caitong International Asset Management Co. Ltd now owns 777 shares of the auto parts company's stock valued at $26,000 after purchasing an additional 714 shares in the last quarter. Assetmark Inc. raised its holdings in shares of BorgWarner by 81.8% in the 2nd quarter. Assetmark Inc. now owns 809 shares of the auto parts company's stock valued at $27,000 after purchasing an additional 364 shares in the last quarter. Addison Advisors LLC raised its holdings in shares of BorgWarner by 1,647.8% in the 2nd quarter. Addison Advisors LLC now owns 804 shares of the auto parts company's stock valued at $27,000 after purchasing an additional 758 shares in the last quarter. Finally, Manchester Capital Management LLC acquired a new stake in shares of BorgWarner in the 1st quarter valued at $30,000. 95.67% of the stock is currently 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.