Brokerages Set BorgWarner Inc. (NYSE:BWA) PT at $40.40

BorgWarner Inc. (NYSE:BWA) has earned an average recommendation of “Moderate Buy” from the sixteen research firms that are currently covering the stock, MarketBeat reports. Six research analysts have rated the stock with a hold rating and ten have given a buy rating to the company. The average 1-year price target among brokerages that have issued ratings on the stock in the last year is $40.20.

Several equities research analysts have recently commented on the company. Wells Fargo & Company lifted their target price on BorgWarner from $40.00 to $41.00 and gave the company an “overweight” rating in a research note on Friday, February 7th. The Goldman Sachs Group lowered their price objective on BorgWarner from $35.00 to $31.00 and set a “neutral” rating for the company in a research report on Thursday, January 16th. StockNews.com downgraded shares of BorgWarner from a “buy” rating to a “hold” rating in a research report on Friday, February 7th. Deutsche Bank Aktiengesellschaft lifted their price target on shares of BorgWarner from $38.00 to $39.00 and gave the stock a “hold” rating in a research report on Monday, November 4th. Finally, Evercore ISI cut their price objective on shares of BorgWarner from $43.00 to $40.00 and set an “outperform” rating on the stock in a report on Monday.

Insiders Place Their Bets

In related news, VP Stefan Demmerle sold 20,544 shares of the stock in a transaction that occurred on Wednesday, November 27th. The stock was sold at an average price of $34.28, for a total transaction of $704,248.32. Following the completion of the sale, the vice president now directly owns 206,969 shares of the company’s stock, valued at approximately $7,094,897.32. This represents a 9.03 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Tonit M. Calaway sold 13,500 shares of BorgWarner stock in a transaction that occurred on Monday, February 10th. The shares were sold at an average price of $30.16, for a total transaction of $407,160.00. Following the completion of the transaction, the chief accounting officer now directly owns 259,310 shares in the company, valued at approximately $7,820,789.60. The trade was a 4.95 % decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 0.45% of the company’s stock.

Hedge Funds Weigh In On BorgWarner

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Marshall Wace LLP acquired a new position in shares of BorgWarner during the second quarter worth about $295,000. Creative Planning lifted its stake in BorgWarner by 4.9% in the 2nd quarter. Creative Planning now owns 26,641 shares of the auto parts company’s stock valued at $859,000 after acquiring an additional 1,246 shares in the last quarter. Sanctuary Advisors LLC acquired a new position in BorgWarner during the 2nd quarter worth approximately $1,681,000. Handelsbanken Fonder AB grew its stake in shares of BorgWarner by 31.4% during the 3rd quarter. Handelsbanken Fonder AB now owns 43,931 shares of the auto parts company’s stock worth $1,594,000 after acquiring an additional 10,500 shares in the last quarter. Finally, Czech National Bank raised its holdings in shares of BorgWarner by 6.9% in the third quarter. Czech National Bank now owns 46,398 shares of the auto parts company’s stock valued at $1,684,000 after purchasing an additional 2,981 shares during the last quarter. 95.67% of the stock is owned by institutional investors and hedge funds.

BorgWarner Stock Performance

NYSE:BWA opened at $29.39 on Friday. The stock has a market capitalization of $6.43 billion, a P/E ratio of 20.55, a price-to-earnings-growth ratio of 0.63 and a beta of 1.18. The company has a current ratio of 1.79, a quick ratio of 1.48 and a debt-to-equity ratio of 0.66. BorgWarner has a 1 year low of $28.65 and a 1 year high of $38.22. The firm has a 50 day moving average of $32.02 and a 200-day moving average of $33.19.

BorgWarner (NYSE:BWA) last announced its earnings results on Thursday, February 6th. The auto parts company reported $1.01 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.93 by $0.08. BorgWarner had a net margin of 2.40% and a return on equity of 15.93%. As a group, sell-side analysts anticipate that BorgWarner will post 4.54 EPS for the current fiscal year.

BorgWarner Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, March 17th. Shareholders of record on Monday, March 3rd will be paid a $0.11 dividend. The ex-dividend date of this dividend is Monday, March 3rd. This represents a $0.44 dividend on an annualized basis and a yield of 1.50%. BorgWarner’s payout ratio is 30.77%.

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.