BorgWarner (NYSE:BWA) Shares Gap Up After Better-Than-Expected Earnings

BorgWarner Inc. (NYSE:BWA)’s stock price gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. 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 trading hands.

The auto parts company reported $1.03 EPS for the quarter, topping analysts’ consensus estimates of $0.87 by $0.16. The firm had revenue of $3.60 billion for the quarter, compared to analyst estimates of $3.51 billion. BorgWarner had a net margin of 3.94% and a return on equity of 14.69%. The firm’s revenue was up 6.3% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.09 EPS.

BorgWarner Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 17th. Shareholders 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 yield of 1.21%. BorgWarner’s dividend payout ratio (DPR) is presently 16.48%.

Analysts Set New Price Targets

A number of equities analysts have issued reports on the company. Wells Fargo & Company upped their target price on BorgWarner from $43.00 to $45.00 and gave the company an “overweight” rating in a research report on Friday. Oppenheimer increased their price objective on shares of BorgWarner from $39.00 to $40.00 and gave the company an “outperform” rating in a research note on Friday. BNP Paribas lowered shares of BorgWarner from an “outperform” rating to a “neutral” rating and decreased their price objective for the stock from $43.00 to $35.00 in a report on Tuesday, February 20th. Piper Sandler initiated coverage on shares of BorgWarner in a research note on Friday, March 15th. They issued an “overweight” rating and a $43.00 target price on the stock. Finally, StockNews.com downgraded BorgWarner from a “buy” rating to a “hold” rating in a research note on Friday, February 9th. Eight equities research analysts have rated the stock with a hold rating and ten have assigned a buy rating to the stock. Based on data from MarketBeat.com, BorgWarner presently has a consensus rating of “Moderate Buy” and a consensus target price of $43.93.

Insider Transactions at BorgWarner

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

Institutional Trading of BorgWarner

Several large investors have recently added to or reduced their stakes in BWA. Headlands Technologies LLC bought a new position in shares of BorgWarner in the third quarter worth $28,000. EdgeRock Capital LLC bought a new stake in shares of BorgWarner during the fourth quarter valued at about $30,000. Riverview Trust Co acquired a new stake in BorgWarner in the first quarter worth about $30,000. Sound Income Strategies LLC bought a new position in BorgWarner in the 4th quarter valued at about $32,000. Finally, Bruce G. Allen Investments LLC acquired a new position in BorgWarner during the 4th quarter valued at about $33,000. 95.67% of the stock is currently owned by institutional investors and hedge funds.

BorgWarner Price Performance

The business’s 50-day simple moving average is $33.10 and its 200 day simple moving average is $33.76. The company has a market capitalization of $8.37 billion, a P/E ratio of 13.65, a P/E/G ratio of 0.98 and a beta of 1.30. The company has a current ratio of 1.65, a quick ratio of 1.30 and a debt-to-equity ratio of 0.61.

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.