Zacks Investment Research cut shares of BorgWarner (NYSE:BWA) from a buy rating to a hold rating in a research report sent to investors on Thursday morning.
According to Zacks, “BorgWarner is poised to benefit from its expansion in Asia that will positively impact its sales figure. Also, a strong balance sheet and ample cash flow helps the company to return capital to its shareholders and undertake new acquisitions. Moreover, it has provided a positive guidance for the fiscal 2017. However, the planned sale of the Remy light vehicle aftermarket business resulted in significant expenses. Also, the negative impact from foreign currencies and pressure from OEMs pose concerns. Moreover, over a month, BorgWarner's shares have underperformed in the industry it belongs to.”
Other equities research analysts have also issued research reports about the company. UBS Group raised their target price on BorgWarner from $57.00 to $60.00 and gave the stock a buy rating in a research report on Thursday, October 19th. KeyCorp raised their target price on BorgWarner from $50.00 to $56.00 and gave the stock a buy rating in a research report on Friday, October 13th. Deutsche Bank lowered BorgWarner from a buy rating to a hold rating and set a $55.00 target price on the stock. in a research report on Thursday, October 12th. Royal Bank of Canada reaffirmed a hold rating and set a $61.00 price target on shares of BorgWarner in a research report on Wednesday, December 20th. Finally, Barclays set a $50.00 price target on BorgWarner and gave the stock a hold rating in a research report on Friday, October 20th. Two equities research analysts have rated the stock with a sell rating, eight have issued a hold rating and eight have given a buy rating to the stock. The company currently has an average rating of Hold and an average price target of $51.69.
BorgWarner (NYSE:BWA) last issued its earnings results on Thursday, October 26th. The auto parts company reported $0.95 earnings per share for the quarter, topping the consensus estimate of $0.88 by $0.07. BorgWarner had a return on equity of 21.48% and a net margin of 3.09%. The business had revenue of $2.42 billion for the quarter, compared to analyst estimates of $2.26 billion. During the same quarter last year, the company earned $0.78 EPS. The business’s quarterly revenue was up 9.1% on a year-over-year basis. sell-side analysts forecast that BorgWarner will post 3.82 earnings per share for the current year.
The company also recently declared a quarterly dividend, which was paid on Friday, December 15th. Shareholders of record on Friday, December 1st were given a dividend of $0.17 per share. This is a positive change from BorgWarner’s previous quarterly dividend of $0.14. The ex-dividend date was Thursday, November 30th. This represents a $0.68 annualized dividend and a yield of 1.27%. BorgWarner’s payout ratio is 49.28%.
In other BorgWarner news, VP Joel Wiegert sold 1,400 shares of BorgWarner stock in a transaction that occurred on Monday, December 18th. The stock was sold at an average price of $52.35, for a total value of $73,290.00. Following the transaction, the vice president now directly owns 16,197 shares in the company, valued at approximately $847,912.95. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP John J. Gasparovic sold 38,409 shares of BorgWarner stock in a transaction that occurred on Monday, December 18th. The shares were sold at an average price of $52.60, for a total value of $2,020,313.40. Following the completion of the transaction, the executive vice president now owns 63,937 shares in the company, valued at $3,363,086.20. The disclosure for this sale can be found here. Insiders own 0.66% of the company’s stock.
Several hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. grew its stake in shares of BorgWarner by 1.5% in the 2nd quarter. Vanguard Group Inc. now owns 20,470,428 shares of the auto parts company’s stock valued at $867,128,000 after purchasing an additional 308,140 shares during the last quarter. Boston Partners grew its stake in shares of BorgWarner by 7.2% in the 3rd quarter. Boston Partners now owns 11,588,389 shares of the auto parts company’s stock valued at $593,672,000 after purchasing an additional 777,782 shares during the last quarter. Victory Capital Management Inc. grew its stake in shares of BorgWarner by 1.3% in the 3rd quarter. Victory Capital Management Inc. now owns 3,904,799 shares of the auto parts company’s stock valued at $200,044,000 after purchasing an additional 50,161 shares during the last quarter. Kiltearn Partners LLP grew its stake in shares of BorgWarner by 0.9% in the 2nd quarter. Kiltearn Partners LLP now owns 3,152,452 shares of the auto parts company’s stock valued at $133,538,000 after purchasing an additional 28,300 shares during the last quarter. Finally, Black Creek Investment Management Inc. grew its stake in shares of BorgWarner by 32.5% in the 2nd quarter. Black Creek Investment Management Inc. now owns 2,664,249 shares of the auto parts company’s stock valued at $112,858,000 after purchasing an additional 653,574 shares during the last quarter. Institutional investors own 95.15% of the company’s stock.
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BorgWarner Inc is engaged in providing technology solutions for combustion, hybrid and electric vehicles. The Company’s segments include Engine and Drivetrain. The Engine segment’s products include turbochargers, timing devices and chains, emissions systems and thermal systems. The Engine segment develops and manufactures products for gasoline and diesel engines, and alternative powertrains.
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