BorgWarner (NYSE:BWA) Shares Gap Up on Earnings Beat

BorgWarner Inc. (NYSE:BWA) shares gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $32.87, but opened at $35.49. BorgWarner shares last traded at $35.21, with a volume of 709,774 shares.

The auto parts company reported $1.03 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.87 by $0.16. BorgWarner had a net margin of 3.94% and a return on equity of 14.69%. The company had revenue of $3.60 billion during the quarter, compared to the consensus estimate of $3.51 billion. During the same quarter in the previous year, the firm earned $1.09 earnings per share. The firm’s quarterly revenue was up 6.3% on a year-over-year basis.

BorgWarner Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, June 17th. Investors of record on Monday, June 3rd will be paid a dividend of $0.11 per share. The ex-dividend date is Monday, June 3rd. This represents a $0.44 dividend on an annualized basis and a dividend yield of 1.21%. BorgWarner’s payout ratio is currently 16.48%.

Wall Street Analysts Forecast Growth

BWA has been the subject of a number of recent analyst reports. BNP Paribas cut BorgWarner from an “outperform” rating to a “neutral” rating and lowered their price objective for the stock from $43.00 to $35.00 in a research report on Tuesday, February 20th. The Goldman Sachs Group lowered their price target on BorgWarner from $38.00 to $34.00 and set a “neutral” rating for the company in a report on Friday, February 9th. JPMorgan Chase & Co. cut their price objective on shares of BorgWarner from $59.00 to $52.00 and set an “overweight” rating on the stock in a report on Thursday, January 25th. TD Cowen upped their target price on shares of BorgWarner from $36.00 to $40.00 and gave the company a “buy” rating in a report on Friday. Finally, Wells Fargo & Company lifted their price target on shares of BorgWarner from $43.00 to $45.00 and gave the stock an “overweight” rating in a research note on Friday. Eight research analysts have rated the stock with a hold rating and ten have issued a buy rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $43.93.

Insider Activity at BorgWarner

In other news, CAO Tonit M. Calaway sold 35,603 shares of the company’s stock in a transaction that occurred on Monday, February 12th. The stock was sold at an average price of $32.15, for a total transaction of $1,144,636.45. Following the completion of the sale, the chief accounting officer now owns 83,348 shares in the company, valued at $2,679,638.20. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. In related news, CEO Frederic Lissalde sold 225,900 shares of the firm’s stock in a transaction dated Wednesday, February 14th. The shares were sold at an average price of $31.08, for a total value of $7,020,972.00. Following the completion of the sale, the chief executive officer now owns 455,227 shares in the company, valued at $14,148,455.16. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CAO Tonit M. Calaway sold 35,603 shares of BorgWarner stock in a transaction that occurred on Monday, February 12th. The shares were sold at an average price of $32.15, for a total value of $1,144,636.45. Following the completion of the sale, the chief accounting officer now directly owns 83,348 shares in the company, valued at approximately $2,679,638.20. The disclosure for this sale can be found here. Insiders have sold 287,503 shares of company stock worth $9,015,478 in the last quarter. Company insiders own 0.45% of the company’s stock.

Hedge Funds Weigh In On BorgWarner

Large investors have recently modified their holdings of the business. Cambridge Investment Research Advisors Inc. grew its holdings in BorgWarner by 15.2% during the third quarter. Cambridge Investment Research Advisors Inc. now owns 17,583 shares of the auto parts company’s stock worth $710,000 after acquiring an additional 2,323 shares during the period. Xponance Inc. boosted its position in shares of BorgWarner by 5.3% during the 3rd quarter. Xponance Inc. now owns 39,659 shares of the auto parts company’s stock worth $1,601,000 after purchasing an additional 2,006 shares in the last quarter. Raymond James & Associates grew its stake in shares of BorgWarner by 4.7% during the 3rd quarter. Raymond James & Associates now owns 459,318 shares of the auto parts company’s stock worth $18,543,000 after purchasing an additional 20,536 shares during the period. Raymond James Financial Services Advisors Inc. increased its holdings in shares of BorgWarner by 2.1% in the 3rd quarter. Raymond James Financial Services Advisors Inc. now owns 64,887 shares of the auto parts company’s stock valued at $2,619,000 after purchasing an additional 1,339 shares in the last quarter. Finally, Bank of New York Mellon Corp lifted its stake in shares of BorgWarner by 3.7% in the third quarter. Bank of New York Mellon Corp now owns 2,166,308 shares of the auto parts company’s stock valued at $87,454,000 after purchasing an additional 76,659 shares during the period. 95.67% of the stock is owned by hedge funds and other institutional investors.

BorgWarner Trading Up 2.3 %

The company has a quick ratio of 1.30, a current ratio of 1.65 and a debt-to-equity ratio of 0.61. The business’s fifty day moving average is $33.10 and its 200 day moving average is $33.76. The stock has a market cap of $8.37 billion, a PE ratio of 13.65, a P/E/G ratio of 0.98 and a beta of 1.30.

BorgWarner Company Profile

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.