BorgWarner Target of Unusually High Options Trading (NYSE:BWA)

BorgWarner Inc. (NYSE:BWA) was the recipient of unusually large options trading on Thursday. Stock investors purchased 1,769 call options on the stock. This is an increase of approximately 1,261% compared to the typical volume of 130 call options.

Shares of BWA traded up $1.80 during trading hours on Friday, reaching $37.20. 1,812,807 shares of the company traded hands, compared to its average volume of 1,484,853. The business has a fifty day moving average price of $35.28 and a 200-day moving average price of $38.17. BorgWarner has a 12-month low of $30.71 and a 12-month high of $44.78. The company has a quick ratio of 1.31, a current ratio of 1.66 and a debt-to-equity ratio of 0.43. The stock has a market capitalization of $7.17 billion, a P/E ratio of 8.30, a P/E/G ratio of 1.16 and a beta of 1.85.

BorgWarner (NYSE:BWA) last released its earnings results on Thursday, July 25th. The auto parts company reported $1.00 earnings per share (EPS) for the quarter, hitting the Zacks’ consensus estimate of $1.00. BorgWarner had a net margin of 7.53% and a return on equity of 20.13%. The company had revenue of $2.55 billion for the quarter, compared to analyst estimates of $2.52 billion. During the same period in the prior year, the business earned $1.18 EPS. The firm’s quarterly revenue was down 5.3% on a year-over-year basis. As a group, research analysts predict that BorgWarner will post 3.86 EPS for the current fiscal year.

The business also recently disclosed a quarterly dividend, which was paid on Monday, September 16th. Investors of record on Tuesday, September 3rd were paid a $0.17 dividend. This represents a $0.68 annualized dividend and a dividend yield of 1.83%. The ex-dividend date of this dividend was Friday, August 30th. BorgWarner’s dividend payout ratio (DPR) is 15.18%.

A number of equities research analysts have recently weighed in on the company. Morgan Stanley set a $47.00 target price on BorgWarner and gave the company a “buy” rating in a research note on Wednesday, June 26th. TheStreet downgraded BorgWarner from a “b-” rating to a “c+” rating in a research note on Thursday, August 22nd. Royal Bank of Canada downgraded BorgWarner from an “outperform” rating to a “sector perform” rating and cut their target price for the company from $44.00 to $41.00 in a research note on Friday, July 26th. Nomura assumed coverage on BorgWarner in a research note on Tuesday, August 27th. They set a “buy” rating and a $41.00 target price on the stock. Finally, Credit Suisse Group cut their target price on BorgWarner from $50.00 to $47.00 and set an “outperform” rating on the stock in a research note on Friday, July 26th. Two investment analysts have rated the stock with a sell rating, six have given a hold rating and nine have issued a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and an average price target of $45.43.

Institutional investors and hedge funds have recently made changes to their positions in the business. Scotia Capital Inc. acquired a new position in shares of BorgWarner in the second quarter valued at approximately $1,035,000. Paloma Partners Management Co purchased a new stake in BorgWarner in the second quarter valued at approximately $1,314,000. Victory Capital Management Inc. grew its stake in BorgWarner by 16.0% during the second quarter. Victory Capital Management Inc. now owns 5,984,092 shares of the auto parts company’s stock worth $251,212,000 after buying an additional 824,302 shares during the period. Los Angeles Capital Management & Equity Research Inc. grew its stake in BorgWarner by 855.6% during the second quarter. Los Angeles Capital Management & Equity Research Inc. now owns 52,616 shares of the auto parts company’s stock worth $2,209,000 after buying an additional 47,110 shares during the period. Finally, Andra AP fonden grew its stake in BorgWarner by 7.1% during the second quarter. Andra AP fonden now owns 118,000 shares of the auto parts company’s stock worth $4,954,000 after buying an additional 7,800 shares during the period. Institutional investors own 91.06% of the company’s stock.

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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