BorgWarner (NYSE:BWA) Shares Gap Up to $32.09

BorgWarner Inc. (NYSE:BWA) shares gapped up before the market opened on Friday . The stock had previously closed at $32.09, but opened at $33.23. BorgWarner shares last traded at $33.14, with a volume of 79,460 shares changing hands.

Wall Street Analyst Weigh In

BWA has been the subject of a number of analyst reports. Oppenheimer raised their price target on BorgWarner from $39.00 to $40.00 and gave the stock an “outperform” rating in a research report on Friday, May 3rd. TD Cowen upped their target price on BorgWarner from $36.00 to $40.00 and gave the company a “buy” rating in a research note on Friday, May 3rd. StockNews.com upgraded BorgWarner from a “hold” rating to a “buy” rating in a report on Thursday, July 4th. Wells Fargo & Company reduced their target price on shares of BorgWarner from $45.00 to $44.00 and set an “overweight” rating on the stock in a research report on Tuesday, June 25th. Finally, UBS Group boosted their price target on BorgWarner from $41.00 to $42.00 and gave the company a “buy” rating in a report on Wednesday. Seven analysts have rated the stock with a hold rating and ten have given a buy rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $41.63.

BorgWarner Price Performance

The firm has a market capitalization of $7.56 billion, a price-to-earnings ratio of 12.55, a P/E/G ratio of 0.85 and a beta of 1.22. The company has a fifty day moving average price of $34.52 and a two-hundred day moving average price of $33.65. The company has a quick ratio of 1.20, a current ratio of 1.54 and a debt-to-equity ratio of 0.55.

BorgWarner (NYSE:BWA) last released its quarterly earnings results on Thursday, May 2nd. The auto parts company reported $1.03 EPS for the quarter, topping the consensus estimate of $0.87 by $0.16. The business had revenue of $3.60 billion during the quarter, compared to analysts’ expectations of $3.51 billion. BorgWarner had a return on equity of 15.33% and a net margin of 4.02%. The company’s quarterly revenue was up 6.3% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.09 earnings per share. On average, equities research analysts expect that BorgWarner Inc. will post 4.05 EPS for the current fiscal year.

BorgWarner Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, June 17th. Shareholders of record on Monday, June 3rd were issued a $0.11 dividend. This represents a $0.44 annualized dividend and a dividend yield of 1.33%. The ex-dividend date of this dividend was Monday, June 3rd. BorgWarner’s dividend payout ratio (DPR) is presently 16.67%.

BorgWarner announced that its Board of Directors has initiated a stock repurchase plan on Thursday, May 2nd that allows the company to repurchase $500.00 million in outstanding shares. This repurchase authorization allows the auto parts company to buy up to 6% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s board of directors believes its shares are undervalued.

Institutional Trading of BorgWarner

Several institutional investors and hedge funds have recently modified their holdings of the business. EdgeRock Capital LLC acquired a new position in BorgWarner during the fourth quarter worth approximately $30,000. Riverview Trust Co acquired a new stake in shares of BorgWarner in the first quarter worth $30,000. Sound Income Strategies LLC acquired a new stake in shares of BorgWarner in the fourth quarter worth $32,000. LRI Investments LLC acquired a new stake in shares of BorgWarner in the first quarter worth $35,000. Finally, Bruce G. Allen Investments LLC acquired a new stake in shares of BorgWarner in the fourth quarter worth $33,000. Hedge funds and other 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.