BorgWarner Inc. (NYSE:BWA) Short Interest Up 7.2% in October

BorgWarner Inc. (NYSE:BWA) was the recipient of a significant increase in short interest in October. As of October 31st, there was short interest totalling 7,460,000 shares, an increase of 7.2% from the October 15th total of 6,960,000 shares. Based on an average trading volume of 2,270,000 shares, the days-to-cover ratio is currently 3.3 days. Currently, 3.4% of the company’s stock are short sold.

Insider Activity

In other news, CEO Frederic Lissalde sold 154,000 shares of BorgWarner stock in a transaction dated Monday, November 11th. The shares were sold at an average price of $34.61, for a total transaction of $5,329,940.00. Following the completion of the transaction, the chief executive officer now directly owns 259,957 shares in the company, valued at $8,997,111.77. This trade represents a 37.20 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Isabelle Mckenzie sold 5,700 shares of the company’s stock in a transaction dated Monday, November 11th. The stock was sold at an average price of $34.62, for a total transaction of $197,334.00. Following the completion of the sale, the vice president now owns 37,640 shares in the company, valued at $1,303,096.80. This represents a 13.15 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 201,466 shares of company stock worth $6,973,828 over the last quarter. 0.63% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of BWA. Matrix Trust Co bought a new stake in shares of BorgWarner in the 3rd quarter worth approximately $25,000. LRI Investments LLC boosted its position in BorgWarner by 2,685.3% during the second quarter. LRI Investments LLC now owns 947 shares of the auto parts company’s stock valued at $31,000 after buying an additional 913 shares during the period. Sentry Investment Management LLC bought a new position in shares of BorgWarner during the second quarter valued at about $32,000. Brooklyn Investment Group purchased a new position in shares of BorgWarner in the third quarter worth about $32,000. Finally, Olistico Wealth LLC bought a new stake in shares of BorgWarner in the 2nd quarter valued at about $35,000. 95.67% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

Several equities analysts have commented on the stock. Robert W. Baird lifted their target price on shares of BorgWarner from $38.00 to $39.00 and gave the stock a “neutral” rating in a research report on Thursday, August 1st. Wolfe Research started coverage on shares of BorgWarner in a research report on Thursday, September 5th. They set a “peer perform” rating for the company. Wells Fargo & Company lowered their price objective on shares of BorgWarner from $44.00 to $42.00 and set an “overweight” rating on the stock in a research report on Thursday, August 1st. JPMorgan Chase & Co. decreased their price target on shares of BorgWarner from $51.00 to $50.00 and set an “overweight” rating for the company in a research note on Monday, October 21st. Finally, StockNews.com raised BorgWarner from a “hold” rating to a “buy” rating in a report on Friday, August 2nd. Six research analysts have rated the stock with a hold rating and ten have issued a buy rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $41.21.

BorgWarner Price Performance

Shares of NYSE BWA traded down $0.90 during midday trading on Tuesday, hitting $33.48. 96,730 shares of the company’s stock were exchanged, compared to its average volume of 2,673,108. The company has a current ratio of 1.84, a quick ratio of 1.48 and a debt-to-equity ratio of 0.66. The business’s fifty day moving average price is $34.30 and its two-hundred day moving average price is $33.98. The company has a market cap of $7.32 billion, a price-to-earnings ratio of 8.73, a PEG ratio of 0.71 and a beta of 1.20. BorgWarner has a 12-month low of $29.51 and a 12-month high of $38.22.

BorgWarner (NYSE:BWA) last issued its quarterly earnings results on Thursday, October 31st. The auto parts company reported $1.09 EPS for the quarter, topping analysts’ consensus estimates of $0.92 by $0.17. BorgWarner had a net margin of 6.33% and a return on equity of 15.51%. The firm had revenue of $3.45 billion for the quarter, compared to analyst estimates of $3.50 billion. During the same quarter in the prior year, the firm earned $0.98 EPS. The business’s revenue for the quarter was down 4.8% compared to the same quarter last year. As a group, research analysts forecast that BorgWarner will post 4.23 EPS for the current fiscal year.

BorgWarner Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, December 16th. Investors of record on Monday, December 2nd will be given a $0.11 dividend. The ex-dividend date is Monday, December 2nd. This represents a $0.44 dividend on an annualized basis and a yield of 1.31%. BorgWarner’s payout ratio is 11.17%.

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.