BorgWarner Inc. (NYSE:BWA) Sees Large Decline in Short Interest

BorgWarner Inc. (NYSE:BWA) saw a significant decline in short interest in March. As of March 15th, there was short interest totalling 10,770,000 shares, a decline of 15.2% from the February 28th total of 12,700,000 shares. Based on an average daily volume of 3,440,000 shares, the days-to-cover ratio is presently 3.1 days. Approximately 5.0% of the shares of the stock are short sold.

Analysts Set New Price Targets

BWA has been the subject of several analyst reports. Piper Sandler cut their target price on shares of BorgWarner from $43.00 to $36.00 and set an “overweight” rating for the company in a research note on Thursday, March 20th. BNP Paribas raised shares of BorgWarner from a “neutral” rating to an “outperform” rating and set a $36.00 price objective on the stock in a research note on Tuesday, March 18th. Guggenheim set a $38.00 price target on BorgWarner in a report on Wednesday, March 5th. Cowen lowered shares of BorgWarner from a “buy” rating to a “hold” rating in a research report on Thursday, March 6th. Finally, Evercore ISI decreased their target price on BorgWarner from $43.00 to $40.00 and set an “outperform” rating for the company in a report on Monday, February 10th. Seven investment analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the company’s stock. According to MarketBeat.com, BorgWarner currently has a consensus rating of “Moderate Buy” and a consensus target price of $39.06.

Insiders Place Their Bets

In related news, EVP Tania Wingfield sold 24,000 shares of BorgWarner stock in a transaction that occurred on Wednesday, March 5th. The stock was sold at an average price of $28.79, for a total transaction of $690,960.00. Following the completion of the transaction, the executive vice president now directly owns 39,110 shares in the company, valued at $1,125,976.90. The trade was a 38.03 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CAO Tonit M. Calaway sold 8,300 shares of the firm’s stock in a transaction on Monday, March 10th. The stock was sold at an average price of $30.07, for a total value of $249,581.00. Following the transaction, the chief accounting officer now directly owns 242,257 shares of the company’s stock, valued at $7,284,667.99. The trade was a 3.31 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 45,800 shares of company stock worth $1,347,701. 0.45% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Avior Wealth Management LLC lifted its position in BorgWarner by 31.3% in the fourth quarter. Avior Wealth Management LLC now owns 1,435 shares of the auto parts company’s stock worth $46,000 after purchasing an additional 342 shares during the period. Janney Montgomery Scott LLC raised its position in BorgWarner by 0.7% in the fourth quarter. Janney Montgomery Scott LLC now owns 54,432 shares of the auto parts company’s stock worth $1,730,000 after acquiring an additional 381 shares in the last quarter. Wealth Enhancement Advisory Services LLC lifted its holdings in BorgWarner by 0.5% in the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 76,168 shares of the auto parts company’s stock valued at $2,421,000 after acquiring an additional 393 shares during the last quarter. Wellington Management Group LLP boosted its position in shares of BorgWarner by 1.4% during the 3rd quarter. Wellington Management Group LLP now owns 27,629 shares of the auto parts company’s stock valued at $1,003,000 after purchasing an additional 394 shares in the last quarter. Finally, Norinchukin Bank The grew its stake in shares of BorgWarner by 4.4% in the 4th quarter. Norinchukin Bank The now owns 9,501 shares of the auto parts company’s stock worth $302,000 after purchasing an additional 402 shares during the last quarter. 95.67% of the stock is owned by institutional investors and hedge funds.

BorgWarner Stock Performance

Shares of NYSE BWA traded up $0.46 during mid-day trading on Wednesday, hitting $29.00. The company had a trading volume of 642,879 shares, compared to its average volume of 2,762,819. BorgWarner has a 12 month low of $27.65 and a 12 month high of $38.23. The stock has a market cap of $6.37 billion, a price-to-earnings ratio of 20.28, a PEG ratio of 0.77 and a beta of 1.21. The company has a debt-to-equity ratio of 0.66, a current ratio of 1.79 and a quick ratio of 1.45. The firm’s 50 day simple moving average is $29.92 and its two-hundred day simple moving average is $32.38.

BorgWarner (NYSE:BWA) last released its quarterly earnings results on Thursday, February 6th. The auto parts company reported $1.01 EPS for the quarter, topping the consensus estimate of $0.93 by $0.08. BorgWarner had a net margin of 2.40% and a return on equity of 15.93%. As a group, equities research analysts forecast that BorgWarner will post 4.28 earnings per share for the current year.

BorgWarner Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, March 17th. Shareholders of record on Monday, March 3rd were given a dividend of $0.11 per share. The ex-dividend date was Monday, March 3rd. This represents a $0.44 dividend on an annualized basis and a yield of 1.52%. BorgWarner’s dividend payout ratio (DPR) is presently 30.77%.

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.