BorgWarner Inc. (BWA) Cut to “Neutral” at Goldman Sachs Group Inc.
BorgWarner Inc. (NYSE:BWA) was downgraded by investment analysts at Goldman Sachs Group Inc. from a “buy” rating to a “neutral” rating in a research note issued to investors on Thursday.
The analysts wrote, “Overall we still remain positive on the company’s ability to grow content per vehicle (CPV) and see solid mid-single digit top line growth, but we believe shares are reflecting this growth path as they are trading in line with our updated 6-month price target,” analyst David Tamberrino wrote in a note.Even in the late U.S. auto cycle, the analyst is confident that BorgWarner should be able to raise its CPV for internal combustion engine and hybrid powertrains. On the other hand, Tamberrino sees the company’s electric powertrain CPV to normalize in the wake of as ICE and hybrids.Related Link: Goldman Downgrades Lear Corporation To Sell Amid Elevated Expectations”Even so, the company remains exposed to secular growth in the industry from the synchronized tightening of fuel efficiency standards globally that is driving increased penetration rates of its core products,”
A number of other brokerages have also weighed in on BWA. Seaport Global Securities started coverage on shares of BorgWarner in a research note on Tuesday, August 9th. They set a “neutral” rating on the stock. Zacks Investment Research raised shares of BorgWarner from a “sell” rating to a “hold” rating in a research note on Monday, August 1st. Bank of America Corp. lowered shares of BorgWarner from a “buy” rating to a “neutral” rating in a research note on Tuesday, June 21st. Robert W. Baird reissued a “buy” rating on shares of BorgWarner in a research report on Tuesday, June 28th. Finally, Buckingham Research initiated coverage on shares of BorgWarner in a research report on Tuesday, August 2nd. They set a “neutral” rating and a $33.00 price target for the company. Two analysts have rated the stock with a sell rating, twelve have given a hold rating and five have given a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and a consensus target price of $42.71.
BorgWarner (NYSE:BWA) opened at 36.30 on Thursday. The stock’s 50 day moving average is $34.70 and its 200-day moving average is $34.16. BorgWarner has a 52-week low of $27.52 and a 52-week high of $48.64. The company has a market capitalization of $7.78 billion, a P/E ratio of 13.13 and a beta of 1.93.
BorgWarner (NYSE:BWA) last announced its earnings results on Thursday, July 28th. The company reported $0.84 earnings per share for the quarter, beating analysts’ consensus estimates of $0.82 by $0.02. The firm had revenue of $2.33 billion for the quarter, compared to analyst estimates of $2.33 billion. BorgWarner had a net margin of 7.10% and a return on equity of 18.50%. The company’s revenue for the quarter was up 14.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.75 EPS. Analysts predict that BorgWarner will post $3.25 EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which was paid on Thursday, September 15th. Investors of record on Thursday, September 1st were given a dividend of $0.13 per share. The ex-dividend date was Tuesday, August 30th. This represents a $0.52 annualized dividend and a yield of 1.43%. BorgWarner’s dividend payout ratio (DPR) is 18.77%.
In related news, VP Thomas J. Mcgill sold 5,000 shares of the business’s stock in a transaction that occurred on Tuesday, August 2nd. The shares were sold at an average price of $31.83, for a total transaction of $159,150.00. Following the completion of the sale, the vice president now directly owns 31,061 shares in the company, valued at $988,671.63. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP Brady D. Ericson sold 16,240 shares of the business’s stock in a transaction that occurred on Tuesday, August 9th. The shares were sold at an average price of $33.77, for a total transaction of $548,424.80. Following the sale, the vice president now owns 70,156 shares of the company’s stock, valued at $2,369,168.12. The disclosure for this sale can be found here. Corporate insiders own 0.65% of the company’s stock.
Hedge funds have recently made changes to their positions in the stock. Hermes Investment Management Ltd. raised its stake in shares of BorgWarner by 22.0% in the second quarter. Hermes Investment Management Ltd. now owns 448,260 shares of the company’s stock valued at $13,233,000 after buying an additional 80,776 shares during the period. Douglas Lane & Associates LLC raised its stake in shares of BorgWarner by 6.5% in the second quarter. Douglas Lane & Associates LLC now owns 1,518,337 shares of the company’s stock valued at $44,821,000 after buying an additional 93,270 shares during the period. Geode Capital Management LLC raised its stake in shares of BorgWarner by 16.6% in the first quarter. Geode Capital Management LLC now owns 2,055,753 shares of the company’s stock valued at $78,802,000 after buying an additional 292,756 shares during the period. Pictet Asset Management Ltd. raised its stake in shares of BorgWarner by 129.5% in the first quarter. Pictet Asset Management Ltd. now owns 331,724 shares of the company’s stock valued at $10,841,000 after buying an additional 187,207 shares during the period. Finally, Summit Partners Public Asset Management LLC acquired a new stake in shares of BorgWarner during the first quarter valued at about $3,840,000. Institutional investors own 88.29% of the company’s stock.
BorgWarner Inc is a supplier of engineered automotive systems and components for powertrain applications. The Company operates through two segments: Engine and Drivetrain. The Engine segment’s products include turbochargers, timing devices and chains, emissions systems and thermal systems. The Drivetrain segment’s products include transmission components and systems, all-wheel drive (AWD) torque transfer systems and rotating electrical devices.
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