BorgWarner Inc. (NYSE:BWA) Short Interest Update

BorgWarner Inc. (NYSE:BWA) was the target of a significant drop in short interest in the month of July. As of July 31st, there was short interest totalling 8,810,000 shares, a drop of 10.6% from the July 15th total of 9,860,000 shares. Currently, 3.9% of the company’s stock are short sold. Based on an average daily volume of 2,870,000 shares, the days-to-cover ratio is presently 3.1 days.

BorgWarner Trading Up 1.3 %

Shares of BWA stock traded up $0.43 during trading on Monday, hitting $33.07. 1,483,500 shares of the stock traded hands, compared to its average volume of 2,854,851. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.62 and a quick ratio of 1.20. The firm’s fifty day moving average price is $32.69 and its 200-day moving average price is $33.36. BorgWarner has a 52-week low of $29.51 and a 52-week high of $42.27. The firm has a market capitalization of $7.53 billion, a P/E ratio of 12.53, a price-to-earnings-growth ratio of 0.78 and a beta of 1.22.

BorgWarner (NYSE:BWA) last issued its quarterly earnings data on Wednesday, July 31st. The auto parts company reported $1.19 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.01 by $0.18. The company had revenue of $3.60 billion for the quarter, compared to analyst estimates of $3.69 billion. BorgWarner had a return on equity of 15.50% and a net margin of 4.97%. The business’s quarterly revenue was down 20.3% compared to the same quarter last year. During the same quarter last year, the company posted $1.35 earnings per share. As a group, research analysts forecast that BorgWarner will post 4.06 earnings per share for the current fiscal year.

BorgWarner declared that its board has authorized a stock buyback plan on Thursday, May 2nd that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the auto parts company to reacquire up to 6% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its stock is undervalued.

BorgWarner Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, September 16th. Shareholders of record on Tuesday, September 3rd will be paid a $0.11 dividend. The ex-dividend date is Tuesday, September 3rd. This represents a $0.44 annualized dividend and a yield of 1.33%. BorgWarner’s payout ratio is currently 16.67%.

Analyst Upgrades and Downgrades

BWA has been the topic of a number of research reports. Oppenheimer upped their target price on BorgWarner from $39.00 to $40.00 and gave the stock an “outperform” rating in a research report on Friday, May 3rd. JPMorgan Chase & Co. raised their price target on BorgWarner from $50.00 to $51.00 and gave the company an “overweight” rating in a report on Monday, August 5th. Citigroup reduced their price objective on BorgWarner from $41.00 to $36.00 and set a “neutral” rating on the stock in a research report on Friday, July 12th. Bank of America reduced their price target on BorgWarner from $50.00 to $45.00 and set a “buy” rating on the stock in a research report on Monday, July 22nd. Finally, TD Cowen lifted their price objective on BorgWarner from $36.00 to $40.00 and gave the stock a “buy” rating in a research report on Friday, May 3rd. Five analysts have rated the stock with a hold rating and eleven have given a buy rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $41.07.

Insider Buying and Selling

In other BorgWarner news, CAO Tonit M. Calaway sold 10,868 shares of BorgWarner stock in a transaction on Monday, August 5th. The shares were sold at an average price of $31.74, for a total transaction of $344,950.32. Following the sale, the chief accounting officer now owns 206,083 shares in the company, valued at $6,541,074.42. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. In other news, CAO Tonit M. Calaway sold 10,868 shares of the company’s stock in a transaction dated Monday, August 5th. The stock was sold at an average price of $31.74, for a total value of $344,950.32. Following the completion of the sale, the chief accounting officer now directly owns 206,083 shares of the company’s stock, valued at approximately $6,541,074.42. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Tania Wingfield sold 2,066 shares of the company’s stock in a transaction that occurred on Tuesday, August 13th. The stock was sold at an average price of $32.00, for a total value of $66,112.00. Following the sale, the executive vice president now owns 46,016 shares in the company, valued at approximately $1,472,512. The disclosure for this sale can be found here. 0.45% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On BorgWarner

Institutional investors have recently added to or reduced their stakes in the company. EdgeRock Capital LLC acquired a new position in BorgWarner during the 4th quarter valued at about $30,000. Riverview Trust Co acquired a new position in BorgWarner in the 1st quarter valued at approximately $30,000. LRI Investments LLC acquired a new position in shares of BorgWarner during the 1st quarter worth $35,000. Sentry Investment Management LLC acquired a new position in shares of BorgWarner during the 2nd quarter worth $32,000. Finally, Olistico Wealth LLC bought a new stake in shares of BorgWarner during the 2nd quarter worth $35,000. Institutional investors and hedge funds own 95.67% of the company’s stock.

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.