BorgWarner (NYSE:BWA) Board of Directors Approves Share Repurchase Program

BorgWarner (NYSE:BWA) announced that its board has initiated a share buyback program on Thursday, May 2nd, RTT News reports. The company plans to buyback $500.00 million in shares. This buyback authorization allows the auto parts company to buy up to 6% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s board believes its shares are undervalued.

Analyst Ratings Changes

A number of research firms have recently weighed in on BWA. Robert W. Baird raised their price target on shares of BorgWarner from $36.00 to $40.00 and gave the stock a “neutral” rating in a research report on Friday. TD Cowen upped their price target on shares of BorgWarner from $36.00 to $40.00 and gave the stock a “buy” rating in a research report on Friday. The Goldman Sachs Group decreased their price objective on BorgWarner from $38.00 to $34.00 and set a “neutral” rating for the company in a report on Friday, February 9th. TheStreet cut BorgWarner from a “b-” rating to a “c+” rating in a research report on Thursday, February 8th. Finally, Wells Fargo & Company boosted their price target on BorgWarner from $43.00 to $45.00 and gave the stock an “overweight” rating in a research report on Friday. Seven analysts have rated the stock with a hold rating and eleven have given a buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $43.76.

BorgWarner Stock Performance

NYSE:BWA traded down $0.14 during midday trading on Tuesday, reaching $36.80. The stock had a trading volume of 2,677,064 shares, compared to its average volume of 2,895,630. The stock has a market capitalization of $8.38 billion, a P/E ratio of 13.99, a PEG ratio of 1.08 and a beta of 1.30. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.54 and a quick ratio of 1.20. BorgWarner has a 1-year low of $29.51 and a 1-year high of $50.04. The firm’s fifty day simple moving average is $33.23 and its 200-day simple moving average is $33.68.

BorgWarner (NYSE:BWA) last issued its quarterly earnings results on Thursday, May 2nd. The auto parts company reported $1.03 EPS for the quarter, topping the consensus estimate of $0.87 by $0.16. The company had revenue of $3.60 billion for the quarter, compared to the consensus estimate of $3.51 billion. BorgWarner had a return on equity of 15.33% and a net margin of 4.02%. The company’s revenue for the quarter was up 6.3% on a year-over-year basis. During the same period in the previous year, the business posted $1.09 EPS. On average, equities research analysts forecast that BorgWarner will post 3.94 EPS for the current fiscal year.

BorgWarner Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, June 17th. Investors of record on Monday, June 3rd will be paid a $0.11 dividend. This represents a $0.44 annualized dividend and a dividend yield of 1.20%. The ex-dividend date is Monday, June 3rd. BorgWarner’s payout ratio is presently 16.67%.

Insider Buying and Selling

In other BorgWarner news, VP Stefan Demmerle sold 3,000 shares of the company’s stock in a transaction that occurred on Wednesday, March 13th. The stock was sold at an average price of $33.00, for a total value of $99,000.00. Following the completion of the transaction, the vice president now owns 249,013 shares of the company’s stock, valued at approximately $8,217,429. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. In other news, VP Stefan Demmerle sold 3,000 shares of the company’s stock in a transaction that occurred on Wednesday, March 13th. The stock was sold at an average price of $33.00, for a total value of $99,000.00. Following the sale, the vice president now directly owns 249,013 shares in the company, valued at approximately $8,217,429. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, VP Volker Weng sold 20,000 shares of the stock in a transaction on Thursday, March 7th. The stock was sold at an average price of $32.85, for a total value of $657,000.00. Following the transaction, the vice president now owns 111,964 shares of the company’s stock, valued at $3,678,017.40. The disclosure for this sale can be found here. Insiders have sold a total of 287,503 shares of company stock valued at $9,015,478 over the last three months. 0.63% of the stock is owned by corporate insiders.

BorgWarner Company Profile

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.