BorgWarner (NYSE:BWA) Hits New 12-Month Low – Should You Sell?

BorgWarner Inc. (NYSE:BWA) reached a new 52-week low during trading on Thursday . The company traded as low as $27.51 and last traded at $27.53, with a volume of 480465 shares. The stock had previously closed at $29.12.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the stock. JPMorgan Chase & Co. cut their price objective on shares of BorgWarner from $51.00 to $49.00 and set an “overweight” rating for the company in a report on Monday, January 27th. Guggenheim set a $38.00 target price on shares of BorgWarner in a research note on Wednesday, March 5th. Barclays cut their price objective on BorgWarner from $43.00 to $42.00 and set an “overweight” rating for the company in a research report on Tuesday, February 11th. Piper Sandler dropped their price target on BorgWarner from $43.00 to $36.00 and set an “overweight” rating for the company in a research note on Thursday, March 20th. Finally, Cowen downgraded BorgWarner from a “buy” rating to a “hold” rating in a research note on Thursday, March 6th. Seven investment analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $39.06.

BorgWarner Stock Performance

The company has a debt-to-equity ratio of 0.66, a current ratio of 1.79 and a quick ratio of 1.45. The stock has a market capitalization of $5.99 billion, a PE ratio of 19.06, a P/E/G ratio of 0.77 and a beta of 1.21. The firm has a fifty day moving average price of $29.87 and a two-hundred day moving average price of $32.36.

BorgWarner (NYSE:BWA) last released its earnings results on Thursday, February 6th. The auto parts company reported $1.01 earnings per share for the quarter, topping analysts’ consensus estimates of $0.93 by $0.08. BorgWarner had a return on equity of 15.93% and a net margin of 2.40%. Research analysts expect that BorgWarner Inc. will post 4.28 EPS for the current year.

BorgWarner Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, March 17th. Investors of record on Monday, March 3rd were issued a dividend of $0.11 per share. The ex-dividend date was Monday, March 3rd. This represents a $0.44 dividend on an annualized basis and a yield of 1.61%. BorgWarner’s payout ratio is 30.77%.

Insider Activity at BorgWarner

In other news, EVP Tania Wingfield sold 24,000 shares of the stock in a transaction on Wednesday, March 5th. The stock was sold at an average price of $28.79, for a total transaction of $690,960.00. Following the transaction, the executive vice president now owns 39,110 shares of the company’s stock, valued at approximately $1,125,976.90. This represents a 38.03 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Tonit M. Calaway sold 8,300 shares of the firm’s stock in a transaction on Monday, March 10th. The shares were sold at an average price of $30.07, for a total value of $249,581.00. Following the transaction, the chief accounting officer now owns 242,257 shares in the company, valued at approximately $7,284,667.99. This represents a 3.31 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 45,800 shares of company stock worth $1,347,701. Company insiders own 0.45% of the company’s stock.

Hedge Funds Weigh In On BorgWarner

Several institutional investors have recently bought and sold shares of BWA. LRI Investments LLC boosted its position in BorgWarner by 1,515.0% during the 4th quarter. LRI Investments LLC now owns 969 shares of the auto parts company’s stock valued at $31,000 after acquiring an additional 909 shares in the last quarter. Resona Asset Management Co. Ltd. purchased a new position in BorgWarner in the fourth quarter valued at about $45,000. Avior Wealth Management LLC raised its holdings in BorgWarner by 31.3% in the fourth quarter. Avior Wealth Management LLC now owns 1,435 shares of the auto parts company’s stock worth $46,000 after purchasing an additional 342 shares in the last quarter. Kapitalo Investimentos Ltda purchased a new stake in shares of BorgWarner during the fourth quarter valued at about $48,000. Finally, Quarry LP grew its position in shares of BorgWarner by 110.6% in the 4th quarter. Quarry LP now owns 1,826 shares of the auto parts company’s stock worth $58,000 after buying an additional 959 shares during the last quarter. 95.67% of the stock is owned by hedge funds and other institutional investors.

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.