Wells Fargo & Company Issues Pessimistic Forecast for BorgWarner (NYSE:BWA) Stock Price

BorgWarner (NYSE:BWA) had its price objective trimmed by Wells Fargo & Company from $42.00 to $40.00 in a research report released on Monday morning,Benzinga reports. The firm currently has an overweight rating on the auto parts company’s stock.

BWA has been the topic of several other reports. Wolfe Research initiated coverage on shares of BorgWarner in a research report on Thursday, September 5th. They set a “peer perform” rating on the stock. Deutsche Bank Aktiengesellschaft increased their price target on shares of BorgWarner from $38.00 to $39.00 and gave the company a “hold” rating in a report on Monday, November 4th. Evercore ISI raised shares of BorgWarner from an “in-line” rating to an “outperform” rating and raised their price target for the company from $39.00 to $43.00 in a research report on Monday, October 14th. Guggenheim reaffirmed a “buy” rating and issued a $41.00 price objective on shares of BorgWarner in a research report on Thursday, December 12th. Finally, JPMorgan Chase & Co. cut their target price on BorgWarner from $51.00 to $50.00 and set an “overweight” rating on the stock in a research note on Monday, October 21st. Six research analysts have rated the stock with a hold rating and eleven have given a buy rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $41.07.

BorgWarner Price Performance

BWA stock opened at $32.99 on Monday. The company has a debt-to-equity ratio of 0.66, a quick ratio of 1.48 and a current ratio of 1.84. The firm has a 50 day moving average price of $34.34 and a 200-day moving average price of $33.64. BorgWarner has a 52-week low of $29.51 and a 52-week high of $38.22. The firm has a market capitalization of $7.21 billion, a price-to-earnings ratio of 8.37, a PEG ratio of 0.77 and a beta of 1.19.

BorgWarner (NYSE:BWA) last announced its quarterly earnings data on Thursday, October 31st. The auto parts company reported $1.09 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.92 by $0.17. BorgWarner had a return on equity of 15.51% and a net margin of 6.33%. The business had revenue of $3.45 billion during the quarter, compared to analysts’ expectations of $3.50 billion. During the same quarter in the previous year, the business earned $0.98 earnings per share. The firm’s quarterly revenue was down 4.8% compared to the same quarter last year. Equities research analysts forecast that BorgWarner will post 4.22 EPS for the current fiscal year.

BorgWarner Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, December 16th. Stockholders of record on Monday, December 2nd were given a dividend of $0.11 per share. This represents a $0.44 annualized dividend and a dividend yield of 1.33%. The ex-dividend date of this dividend was Monday, December 2nd. BorgWarner’s payout ratio is currently 11.17%.

Insider Transactions at BorgWarner

In other news, CEO Frederic Lissalde sold 154,000 shares of the company’s stock in a transaction on Monday, November 11th. The stock was sold at an average price of $34.61, for a total value of $5,329,940.00. Following the completion of the sale, the chief executive officer now directly owns 259,957 shares in the company, valued at $8,997,111.77. This represents a 37.20 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, VP Isabelle Mckenzie sold 5,700 shares of the firm’s stock in a transaction on Monday, November 11th. The stock was sold at an average price of $34.62, for a total value of $197,334.00. Following the completion of the transaction, the vice president now directly owns 37,640 shares in the company, valued at approximately $1,303,096.80. This represents a 13.15 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 222,010 shares of company stock worth $7,678,076 in the last quarter. Company insiders own 0.45% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Matrix Trust Co purchased a new position in shares of BorgWarner during the 3rd quarter valued at $25,000. LRI Investments LLC lifted its position in shares of BorgWarner by 2,685.3% in the second quarter. LRI Investments LLC now owns 947 shares of the auto parts company’s stock valued at $31,000 after acquiring an additional 913 shares in the last quarter. Sentry Investment Management LLC purchased a new position in shares of BorgWarner in the second quarter valued at about $32,000. Brooklyn Investment Group bought a new position in shares of BorgWarner in the third quarter worth about $32,000. Finally, True Wealth Design LLC purchased a new stake in shares of BorgWarner during the third quarter worth about $38,000. 95.67% of the stock is currently owned by 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.