BorgWarner Inc. (NYSE:BWA) Given Consensus Rating of “Moderate Buy” by Brokerages

Shares of BorgWarner Inc. (NYSE:BWA) have been assigned a consensus rating of “Moderate Buy” from the seventeen ratings firms that are currently covering the firm, Marketbeat reports. Seven investment analysts have rated the stock with a hold recommendation and ten have issued a buy recommendation on the company. The average 1 year price objective among brokerages that have covered the stock in the last year is $43.71.

Several equities analysts have recently commented on BWA shares. Barclays upped their target price on BorgWarner from $44.00 to $45.00 and gave the company an “overweight” rating in a report on Monday, May 6th. Oppenheimer increased their target price on BorgWarner from $39.00 to $40.00 and gave the stock an “outperform” rating in a research report on Friday, May 3rd. Robert W. Baird boosted their price target on shares of BorgWarner from $36.00 to $40.00 and gave the company a “neutral” rating in a report on Friday, May 3rd. TD Cowen increased their price objective on shares of BorgWarner from $36.00 to $40.00 and gave the stock a “buy” rating in a report on Friday, May 3rd. Finally, Piper Sandler started coverage on shares of BorgWarner in a research note on Friday, March 15th. They set an “overweight” rating and a $43.00 target price for the company.

BorgWarner Stock Performance

BWA stock opened at $31.88 on Thursday. The stock’s 50 day simple moving average is $34.71 and its 200 day simple moving average is $33.78. BorgWarner has a 12-month low of $29.51 and a 12-month high of $47.05. The firm has a market cap of $7.26 billion, a P/E ratio of 12.08, a P/E/G ratio of 0.78 and a beta of 1.22. The company has a current ratio of 1.54, a quick ratio of 1.20 and a debt-to-equity ratio of 0.55.

BorgWarner (NYSE:BWA) last posted its quarterly earnings results on Thursday, May 2nd. The auto parts company reported $1.03 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.87 by $0.16. BorgWarner had a net margin of 4.02% and a return on equity of 15.33%. The company had revenue of $3.60 billion for the quarter, compared to the consensus estimate of $3.51 billion. During the same period last year, the firm posted $1.09 EPS. The company’s revenue for the quarter was up 6.3% on a year-over-year basis. As a group, equities research analysts predict that BorgWarner will post 4.05 EPS for the current year.

BorgWarner declared that its board has initiated a share repurchase program on Thursday, May 2nd that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the auto parts company to repurchase up to 6% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

BorgWarner Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 17th. Stockholders of record on Monday, June 3rd were issued a $0.11 dividend. The ex-dividend date of this dividend was Monday, June 3rd. This represents a $0.44 annualized dividend and a dividend yield of 1.38%. BorgWarner’s dividend payout ratio (DPR) is 16.67%.

Institutional Investors Weigh In On BorgWarner

Institutional investors and hedge funds have recently bought and sold shares of the business. EdgeRock Capital LLC bought a new stake in shares of BorgWarner in the 4th quarter worth approximately $30,000. Riverview Trust Co bought a new stake in BorgWarner during the first quarter worth approximately $30,000. Sound Income Strategies LLC acquired a new position in BorgWarner in the fourth quarter worth approximately $32,000. LRI Investments LLC bought a new position in shares of BorgWarner in the first quarter valued at $35,000. Finally, Bruce G. Allen Investments LLC acquired a new stake in shares of BorgWarner during the 4th quarter valued at $33,000. 95.67% of the stock is owned by institutional investors and hedge funds.

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.