BorgWarner Inc. (NYSE:BWA) Short Interest Down 8.4% in July

BorgWarner Inc. (NYSE:BWA) was the target of a large decrease in short interest in July. As of July 15th, there was short interest totalling 9,860,000 shares, a decrease of 8.4% from the June 30th total of 10,770,000 shares. Currently, 4.4% of the shares of the stock are sold short. Based on an average daily volume of 2,770,000 shares, the days-to-cover ratio is presently 3.6 days.

BorgWarner Stock Down 3.6 %

BWA traded down $1.28 during trading hours on Thursday, hitting $34.03. 3,355,314 shares of the company’s stock were exchanged, compared to its average volume of 2,878,458. The company has a current ratio of 1.54, a quick ratio of 1.20 and a debt-to-equity ratio of 0.55. BorgWarner has a 12-month low of $29.51 and a 12-month high of $46.73. The firm has a market cap of $7.75 billion, a P/E ratio of 12.89, a price-to-earnings-growth ratio of 0.75 and a beta of 1.22. The firm has a 50 day moving average of $33.41 and a 200 day moving average of $33.46.

BorgWarner (NYSE:BWA) last issued its quarterly earnings results on Wednesday, July 31st. The auto parts company reported $1.19 earnings per share for the quarter, topping analysts’ consensus estimates of $1.00 by $0.19. The firm had revenue of $3.60 billion during the quarter, compared to analysts’ expectations of $3.69 billion. BorgWarner had a net margin of 4.02% and a return on equity of 15.33%. BorgWarner’s quarterly revenue was down 20.3% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.35 EPS. Analysts predict that BorgWarner will post 4.01 EPS for the current fiscal year.

BorgWarner announced that its board has initiated a stock buyback program on Thursday, May 2nd that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the auto parts company to purchase up to 6% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.

BorgWarner Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, September 16th. Shareholders of record on Tuesday, September 3rd will be paid a dividend of $0.11 per share. The ex-dividend date is Tuesday, September 3rd. This represents a $0.44 annualized dividend and a dividend yield of 1.29%. BorgWarner’s dividend payout ratio is currently 16.67%.

Institutional Investors Weigh In On BorgWarner

Hedge funds have recently modified their holdings of the company. Trillium Asset Management LLC boosted its position in shares of BorgWarner by 2.1% in the first quarter. Trillium Asset Management LLC now owns 13,788 shares of the auto parts company’s stock worth $479,000 after acquiring an additional 283 shares during the last quarter. Empirical Finance LLC raised its stake in shares of BorgWarner by 3.5% during the first quarter. Empirical Finance LLC now owns 8,456 shares of the auto parts company’s stock valued at $294,000 after purchasing an additional 285 shares during the period. BNP PARIBAS ASSET MANAGEMENT Holding S.A. raised its stake in shares of BorgWarner by 1.8% during the first quarter. BNP PARIBAS ASSET MANAGEMENT Holding S.A. now owns 19,200 shares of the auto parts company’s stock valued at $667,000 after purchasing an additional 335 shares during the period. First Pacific Financial increased its stake in shares of BorgWarner by 3.6% in the second quarter. First Pacific Financial now owns 9,763 shares of the auto parts company’s stock worth $315,000 after buying an additional 340 shares during the last quarter. Finally, Verdence Capital Advisors LLC increased its stake in shares of BorgWarner by 3.8% in the first quarter. Verdence Capital Advisors LLC now owns 9,459 shares of the auto parts company’s stock worth $329,000 after buying an additional 343 shares during the last quarter. 95.67% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research firms recently weighed in on BWA. Wells Fargo & Company decreased their price objective on shares of BorgWarner from $44.00 to $42.00 and set an “overweight” rating on the stock in a research report on Thursday. Barclays lifted their price target on shares of BorgWarner from $45.00 to $47.00 and gave the stock an “overweight” rating in a research note on Thursday. Oppenheimer upped their price target on shares of BorgWarner from $39.00 to $40.00 and gave the company an “outperform” rating in a research report on Friday, May 3rd. UBS Group increased their target price on shares of BorgWarner from $41.00 to $42.00 and gave the stock a “buy” rating in a report on Wednesday, July 10th. Finally, JPMorgan Chase & Co. lowered their price objective on shares of BorgWarner from $52.00 to $50.00 and set an “overweight” rating for the company in a report on Monday, July 22nd. Eight analysts have rated the stock with a hold rating and ten have issued a buy rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $41.35.

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.