BorgWarner (NYSE:BWA) Price Target Raised to $45.00

Key Points

• JPMorgan Chase & Co. increased its price target for BorgWarner from $43.00 to $45.00, indicating a potential upside of 18.22% from the current price.
• In addition to JPMorgan, several analysts have raised or adjusted their target prices, with a consensus target of $39.50 and a rating of "Moderate Buy" for the stock.
• BorgWarner announced a $1 billion share repurchase program, reflecting management's belief that the stock is undervalued while the company reported a quarterly EPS of $1.21, exceeding analyst expectations.

BorgWarner (NYSE:BWA - Get Free Report) had its target price raised by JPMorgan Chase & Co. from $43.00 to $45.00 in a research report issued on Monday,Benzinga reports. The firm presently has an "overweight" rating on the auto parts company's stock. JPMorgan Chase & Co.'s price target would suggest a potential upside of 18.22% from the company's current price.

Other equities research analysts have also issued research reports about the stock. UBS Group boosted their price target on shares of BorgWarner from $35.00 to $38.00 and gave the company a "neutral" rating in a report on Monday, July 14th. The Goldman Sachs Group upgraded BorgWarner from a "neutral" rating to a "buy" rating and lifted their price target for the company from $31.00 to $34.00 in a report on Thursday, April 10th. Wells Fargo & Company raised their price target on shares of BorgWarner from $45.00 to $46.00 and gave the company an "overweight" rating in a report on Friday. Guggenheim decreased their price objective on shares of BorgWarner from $38.00 to $33.00 and set a "buy" rating for the company in a report on Tuesday, April 22nd. Finally, Bank of America raised their target price on BorgWarner from $35.00 to $41.00 and gave the company a "buy" rating in a report on Monday, June 16th. Six research analysts have rated the stock with a hold rating, ten have given a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat.com, BorgWarner has an average rating of "Moderate Buy" and a consensus price target of $39.50.

BorgWarner Stock Performance

BWA traded up $0.54 during trading on Monday, reaching $38.06. 565,177 shares of the company were exchanged, compared to its average volume of 2,893,633. The firm has a 50 day moving average of $34.25 and a 200 day moving average of $31.21. BorgWarner has a 52 week low of $24.40 and a 52 week high of $38.06. The stock has a market cap of $8.24 billion, a P/E ratio of 40.46, a PEG ratio of 1.61 and a beta of 1.10. The company has a current ratio of 2.02, a quick ratio of 1.66 and a debt-to-equity ratio of 0.64.

BorgWarner (NYSE:BWA - Get Free Report) last released its earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share (EPS) 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 return on equity of 16.17% and a net margin of 1.50%. BorgWarner's revenue was up 1.0% compared to the same quarter last year. During the same period in the previous year, the company earned $1.19 earnings per share. On average, sell-side analysts forecast that BorgWarner will post 4.28 EPS for the current fiscal year.

BorgWarner announced that its board has initiated a share repurchase program on Thursday, July 31st that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the auto parts company to repurchase up to 13.2% of its shares through open market purchases. Shares buyback programs are often an indication that the company's board believes its shares are undervalued.

Insider Activity at BorgWarner

In other BorgWarner news, 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 completion of the transaction, the vice president owned 63,445 shares of the company's stock, valued at $2,109,546.25. This represents a 7.31% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Tonit M. Calaway sold 27,736 shares of BorgWarner 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 completion of the sale, the executive vice president owned 214,521 shares in the company, valued at $7,042,724.43. This trade represents a 11.45% 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.

Hedge Funds Weigh In On BorgWarner

Several hedge funds have recently modified their holdings of the stock. O Shaughnessy Asset Management LLC increased its holdings in BorgWarner by 19.5% during the fourth quarter. O Shaughnessy Asset Management LLC now owns 36,196 shares of the auto parts company's stock worth $1,151,000 after buying an additional 5,908 shares during the last quarter. Wellington Management Group LLP raised its holdings in shares of BorgWarner by 231.1% in the 4th quarter. Wellington Management Group LLP now owns 91,466 shares of the auto parts company's stock valued at $2,908,000 after purchasing an additional 63,837 shares during the period. Franklin Resources Inc. lifted its stake in BorgWarner by 7.2% in the 4th quarter. Franklin Resources Inc. now owns 271,965 shares of the auto parts company's stock valued at $8,646,000 after purchasing an additional 18,340 shares during the last quarter. National Bank of Canada FI grew its holdings in BorgWarner by 10.5% during the fourth quarter. National Bank of Canada FI now owns 101,275 shares of the auto parts company's stock worth $3,220,000 after purchasing an additional 9,622 shares during the period. Finally, Prudential PLC increased its position in BorgWarner by 374.2% during the fourth quarter. Prudential PLC now owns 82,200 shares of the auto parts company's stock worth $2,613,000 after buying an additional 64,867 shares during the last quarter. Institutional investors own 95.67% of the company's stock.

About BorgWarner

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.

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