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.
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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