ValuEngine Downgrades BorgWarner (NYSE:BWA) to Strong Sell

ValuEngine lowered shares of BorgWarner (NYSE:BWA) from a sell rating to a strong sell rating in a research note published on Saturday morning, ValuEngine reports.

Several other equities analysts have also commented on BWA. Cowen set a $47.00 target price on BorgWarner and gave the company a buy rating in a report on Friday, July 19th. Citigroup dropped their target price on BorgWarner from $45.00 to $42.00 and set a neutral rating on the stock in a report on Tuesday, July 30th. Deutsche Bank lowered BorgWarner from a buy rating to a hold rating and dropped their target price for the company from $50.00 to $44.00 in a report on Friday, July 26th. Royal Bank of Canada lowered BorgWarner from an outperform rating to a sector perform rating and dropped their target price for the company from $44.00 to $41.00 in a report on Friday, July 26th. Finally, Barclays reissued a buy rating and issued a $44.00 target price on shares of BorgWarner in a report on Thursday, July 18th. Two analysts have rated the stock with a sell rating, seven have assigned a hold rating and nine have given a buy rating to the stock. The stock presently has an average rating of Hold and a consensus price target of $46.93.

Shares of NYSE BWA opened at $33.24 on Friday. The firm has a market capitalization of $6.93 billion, a PE ratio of 7.42, a P/E/G ratio of 1.12 and a beta of 1.82. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.31 and a current ratio of 1.66. BorgWarner has a 12-month low of $32.46 and a 12-month high of $46.97. The company has a fifty day moving average of $38.84.

BorgWarner (NYSE:BWA) last announced its quarterly earnings data on Thursday, July 25th. The auto parts company reported $1.00 earnings per share (EPS) for the quarter, meeting the consensus estimate of $1.00. The business had revenue of $2.55 billion for the quarter, compared to analysts’ expectations of $2.52 billion. BorgWarner had a return on equity of 20.13% and a net margin of 7.53%. The company’s revenue for the quarter was down 5.3% compared to the same quarter last year. During the same period last year, the firm earned $1.18 earnings per share. As a group, sell-side analysts expect that BorgWarner will post 3.88 earnings per share for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Monday, September 16th. Shareholders of record on Tuesday, September 3rd will be issued a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 2.05%. The ex-dividend date is Friday, August 30th. BorgWarner’s payout ratio is 15.18%.

Several hedge funds have recently modified their holdings of BWA. FMR LLC grew its holdings in shares of BorgWarner by 133.6% during the fourth quarter. FMR LLC now owns 2,625,297 shares of the auto parts company’s stock worth $91,202,000 after purchasing an additional 1,501,562 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of BorgWarner by 31.9% during the fourth quarter. Dimensional Fund Advisors LP now owns 3,636,739 shares of the auto parts company’s stock worth $126,343,000 after purchasing an additional 879,547 shares during the last quarter. Alecta Pensionsforsakring Omsesidigt grew its holdings in shares of BorgWarner by 9.6% during the first quarter. Alecta Pensionsforsakring Omsesidigt now owns 6,075,000 shares of the auto parts company’s stock worth $233,341,000 after purchasing an additional 530,000 shares during the last quarter. Bank of New York Mellon Corp grew its holdings in shares of BorgWarner by 25.5% during the second quarter. Bank of New York Mellon Corp now owns 2,288,622 shares of the auto parts company’s stock worth $96,076,000 after purchasing an additional 465,672 shares during the last quarter. Finally, Wedge Capital Management L L P NC purchased a new position in shares of BorgWarner during the first quarter worth about $12,957,000. 89.51% of the stock is currently owned by institutional investors.

About BorgWarner

BorgWarner Inc provides solutions for combustion, hybrid, and electric vehicles worldwide. It operates in two segments, Engine and Drivetrain. The Engine segment develops and manufactures turbochargers; eBoosters; and timing systems products, including timing chains, variable cam timing crankshaft and camshaft sprockets, tensioners, guides and snubbers, front-wheel drive transmission chains, four-wheel drive chains, and hybrid power transmission chains.

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To view ValuEngine’s full report, visit ValuEngine’s official website.

Analyst Recommendations for BorgWarner (NYSE:BWA)

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