BorgWarner Inc. (NYSE:BWA) Shares to Pay Quarterly Dividend of $0.17

Key Points

• BorgWarner declared a quarterly dividend of $0.17 per share, payable December 15 to shareholders of record December 1. The annualized dividend is $0.68, yielding about 1.3%.
• The dividend appears well covered: the current payout ratio is 14.7%, and analysts project a future payout ratio of 11.5% based on expected earnings.
• BorgWarner beat quarterly earnings estimates with EPS of $1.39 versus $1.25 expected, although revenue fell 2.9% year over year. Analysts’ consensus rating is “Moderate Buy,” with an average price target of $79.

BorgWarner Inc. (NYSE:BWA - Get Free Report) announced a quarterly dividend on Wednesday, November 11th. Investors of record on Tuesday, December 1st will be paid a dividend of $0.17 per share by the auto parts company on Tuesday, December 15th. This represents a $0.68 annualized dividend and a yield of 1.3%. The ex-dividend date is Tuesday, December 1st.

BorgWarner has a payout ratio of 14.7% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect BorgWarner to earn $5.89 per share next year, which means the company should continue to be able to cover its $0.68 annual dividend with an expected future payout ratio of 11.5%.

BorgWarner Stock Down 0.4%

NYSE BWA traded down $0.19 on Thursday, reaching $51.07. The company had a trading volume of 1,493,647 shares, compared to its average volume of 2,762,233. The company's fifty day moving average is $59.01 and its 200-day moving average is $60.64. The firm has a market capitalization of $10.26 billion, a price-to-earnings ratio of 21.73, a price-to-earnings-growth ratio of 0.71 and a beta of 1.20. The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.12 and a current ratio of 1.41. BorgWarner has a 1-year low of $40.73 and a 1-year high of $78.82.

BorgWarner (NYSE:BWA - Get Free Report) last posted its earnings results on Thursday, October 29th. The auto parts company reported $1.39 earnings per share for the quarter, topping analysts' consensus estimates of $1.25 by $0.14. The firm had revenue of $3.49 billion for the quarter, compared to analysts' expectations of $3.50 billion. BorgWarner had a net margin of 3.36% and a return on equity of 19.61%. The company's revenue was down 2.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.24 earnings per share. On average, research analysts forecast that BorgWarner will post 5.27 earnings per share for the current fiscal year.

Analyst Ratings Changes

A number of research analysts have recently weighed in on the company. Weiss Ratings reissued a "hold (c+)" rating on shares of BorgWarner in a report on Friday, September 25th. Wall Street Zen upgraded shares of BorgWarner from a "hold" rating to a "buy" rating in a report on Sunday, November 1st. UBS Group cut their target price on BorgWarner from $95.00 to $91.00 and set a "buy" rating for the company in a research report on Wednesday, October 7th. Deutsche Bank set a $80.00 target price on shares of BorgWarner in a research note on Thursday, August 6th. Finally, Bank of America raised shares of BorgWarner from a "neutral" rating to a "buy" rating and lifted their target price for the stock from $78.00 to $85.00 in a report on Thursday, October 15th. Eleven investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $79.00.

BorgWarner Company Profile

BorgWarner Inc. is a global automotive supplier that develops and manufactures technologies for passenger vehicles, commercial vehicles and other applications. Its products support vehicles powered by internal combustion engines as well as hybrid and electric vehicles. The company's offerings include turbocharging systems, transmission components, electric motors, power electronics, battery and thermal-management systems, and technologies that help control emissions. BorgWarner supplies automakers and commercial-vehicle manufacturers around the world, with operations serving markets across North America, Europe and Asia.

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