Berenberg Bank Initiates Coverage on BorgWarner Inc. (BWA)
Investment analysts at Berenberg Bank initiated coverage on shares of BorgWarner Inc. (NYSE:BWA) in a research report issued on Tuesday. The firm set a “sell” rating and a $28.00 price target on the stock. Berenberg Bank’s price objective suggests a potential downside of 20.88% from the company’s previous close.
Several other equities research analysts have also recently weighed in on the company. Goldman Sachs Group Inc. cut BorgWarner from a “buy” rating to a “neutral” rating and decreased their price target for the company from $37.00 to $35.00 in a research note on Thursday, October 6th. Robert W. Baird reissued an “outperform” rating and issued a $46.00 price target on shares of BorgWarner in a research note on Wednesday, September 7th. Bank of America Corp. cut BorgWarner from a “neutral” rating to an “underperform” rating and decreased their price target for the company from $39.00 to $29.00 in a research note on Wednesday, November 9th. Buckingham Research started coverage on BorgWarner in a research note on Tuesday, August 2nd. They issued a “neutral” rating and a $33.00 price target for the company. Finally, Seaport Global Securities started coverage on BorgWarner in a research note on Tuesday, August 9th. They issued a “neutral” rating for the company. Three analysts have rated the stock with a sell rating, eleven have assigned a hold rating and three have assigned a buy rating to the company’s stock. BorgWarner currently has a consensus rating of “Hold” and an average target price of $37.00.
Shares of BorgWarner (NYSE:BWA) opened at 35.39 on Tuesday. The firm has a market cap of $7.54 billion, a price-to-earnings ratio of 14.41 and a beta of 1.75. BorgWarner has a 12 month low of $27.52 and a 12 month high of $44.35. The company has a 50-day moving average price of $35.09 and a 200-day moving average price of $33.78.
BorgWarner (NYSE:BWA) last issued its earnings results on Thursday, October 27th. The company reported $0.78 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.77 by $0.01. BorgWarner had a return on equity of 18.50% and a net margin of 6.01%. The business earned $2.21 billion during the quarter, compared to analysts’ expectations of $2.19 billion. During the same quarter in the prior year, the firm earned $0.73 EPS. The business’s revenue for the quarter was up 17.5% compared to the same quarter last year. Analysts forecast that BorgWarner will post $3.26 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which will be paid on Thursday, December 15th. Shareholders of record on Thursday, December 1st will be issued a $0.14 dividend. The ex-dividend date is Tuesday, November 29th. This represents a $0.56 annualized dividend and a yield of 1.58%. This is a positive change from BorgWarner’s previous quarterly dividend of $0.13. BorgWarner’s dividend payout ratio is presently 21.14%.
In other BorgWarner news, VP Brady D. Ericson sold 17,132 shares of the stock in a transaction that occurred on Friday, August 26th. The stock was sold at an average price of $33.69, for a total value of $577,177.08. Following the transaction, the vice president now owns 25,502 shares in the company, valued at $859,162.38. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. 0.65% of the stock is owned by company insiders.
A number of hedge funds and other institutional investors have recently made changes to their positions in BWA. Vanguard Group Inc. raised its position in shares of BorgWarner by 2.0% in the second quarter. Vanguard Group Inc. now owns 19,469,808 shares of the company’s stock valued at $574,749,000 after buying an additional 384,993 shares during the last quarter. Harris Associates L P raised its position in shares of BorgWarner by 18.5% in the second quarter. Harris Associates L P now owns 10,074,318 shares of the company’s stock valued at $297,394,000 after buying an additional 1,570,440 shares during the last quarter. Alecta Pensionsforsakring Omsesidigt raised its position in shares of BorgWarner by 4.6% in the third quarter. Alecta Pensionsforsakring Omsesidigt now owns 7,425,000 shares of the company’s stock valued at $261,137,000 after buying an additional 325,000 shares during the last quarter. BlackRock Institutional Trust Company N.A. raised its position in shares of BorgWarner by 0.5% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 5,693,136 shares of the company’s stock valued at $168,061,000 after buying an additional 27,275 shares during the last quarter. Finally, JPMorgan Chase & Co. raised its position in shares of BorgWarner by 284.3% in the third quarter. JPMorgan Chase & Co. now owns 4,994,064 shares of the company’s stock valued at $175,693,000 after buying an additional 3,694,451 shares during the last quarter. Institutional investors and hedge funds own 93.27% of the company’s stock.
BorgWarner Company Profile
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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