BorgWarner (NYSE:BWA) Shares Gap Up to $32.09

BorgWarner Inc. (NYSE:BWA) gapped up before the market opened on Friday . The stock had previously closed at $32.09, but opened at $33.23. BorgWarner shares last traded at $33.14, with a volume of 79,460 shares trading hands.

Analyst Ratings Changes

BWA has been the topic of several research reports. 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. Barclays increased their target price on shares of BorgWarner from $44.00 to $45.00 and gave the stock an “overweight” rating in a research report on Monday, May 6th. Robert W. Baird boosted their price objective on shares of BorgWarner from $36.00 to $40.00 and gave the stock a “neutral” rating in a research note 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 research report on Friday, May 3rd. Finally, UBS Group upped their price target on shares of BorgWarner from $41.00 to $42.00 and gave the stock a “buy” rating in a research report on Wednesday. Seven investment analysts have rated the stock with a hold rating and ten have given a buy rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $41.63.

BorgWarner Stock Performance

The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.20 and a current ratio of 1.54. The firm has a 50 day moving average of $34.52 and a two-hundred day moving average of $33.65. The stock has a market cap of $7.56 billion, a P/E ratio of 12.55, a P/E/G ratio of 0.85 and a beta of 1.22.

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

BorgWarner Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, June 17th. Investors of record on Monday, June 3rd were paid a $0.11 dividend. This represents a $0.44 annualized dividend and a dividend yield of 1.33%. The ex-dividend date of this dividend was Monday, June 3rd. BorgWarner’s payout ratio is presently 16.67%.

BorgWarner declared that its Board of Directors has initiated a stock repurchase plan 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 stock through open market purchases. Stock buyback plans are usually a sign that the company’s leadership believes its stock is undervalued.

Hedge Funds Weigh In On BorgWarner

A number of hedge funds have recently made changes to their positions in BWA. Norges Bank acquired a new position in BorgWarner during the 4th quarter worth about $75,489,000. Victory Capital Management Inc. grew its holdings in BorgWarner by 10.9% during the fourth quarter. Victory Capital Management Inc. now owns 9,668,438 shares of the auto parts company’s stock worth $346,614,000 after purchasing an additional 948,659 shares during the period. Ninety One UK Ltd boosted its holdings in shares of BorgWarner by 85.1% during the fourth quarter. Ninety One UK Ltd now owns 1,656,221 shares of the auto parts company’s stock worth $59,376,000 after acquiring an additional 761,250 shares during the period. Hotchkis & Wiley Capital Management LLC increased its holdings in shares of BorgWarner by 43.5% during the fourth quarter. Hotchkis & Wiley Capital Management LLC now owns 2,213,630 shares of the auto parts company’s stock worth $79,359,000 after purchasing an additional 670,720 shares during the period. Finally, American Century Companies Inc. increased its stake in BorgWarner by 18.3% in the third quarter. American Century Companies Inc. now owns 4,189,541 shares of the auto parts company’s stock valued at $169,132,000 after acquiring an additional 648,633 shares during the last quarter. Institutional investors and hedge funds own 95.67% of the company’s stock.

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.