BorgWarner (NYSE:BWA) Reaches New 1-Year Low – Here’s Why

BorgWarner Inc. (NYSE:BWA) shares reached a new 52-week low during mid-day trading on Friday . The stock traded as low as $29.33 and last traded at $30.02, with a volume of 783816 shares trading hands. The stock had previously closed at $30.24.

Wall Street Analyst Weigh In

BWA has been the subject of several research analyst reports. Wells Fargo & Company boosted their price objective on BorgWarner from $40.00 to $41.00 and gave the company an “overweight” rating in a report on Friday. Barclays lowered their target price on shares of BorgWarner from $47.00 to $43.00 and set an “overweight” rating for the company in a research note on Wednesday, January 22nd. Evercore ISI raised shares of BorgWarner from an “in-line” rating to an “outperform” rating and raised their target price for the stock from $39.00 to $43.00 in a report on Monday, October 14th. The Goldman Sachs Group lowered their target price on BorgWarner from $35.00 to $31.00 and set a “neutral” rating for the company in a report on Thursday, January 16th. Finally, Deutsche Bank Aktiengesellschaft boosted their price objective on BorgWarner from $38.00 to $39.00 and gave the company a “hold” rating in a research report on Monday, November 4th. Six analysts have rated the stock with a hold rating and eleven have given a buy rating to the company’s stock. According to MarketBeat, BorgWarner currently has an average rating of “Moderate Buy” and a consensus price target of $40.47.

BorgWarner Stock Performance

The company has a market capitalization of $6.59 billion, a price-to-earnings ratio of 7.63, a P/E/G ratio of 0.66 and a beta of 1.18. The firm’s 50 day simple moving average is $32.50 and its 200-day simple moving average is $33.30. The company has a debt-to-equity ratio of 0.66, a quick ratio of 1.48 and a current ratio of 1.84.

BorgWarner (NYSE:BWA) last posted its quarterly earnings results on Thursday, February 6th. The auto parts company reported $1.01 EPS for the quarter, topping the consensus estimate of $0.93 by $0.08. BorgWarner had a net margin of 6.33% and a return on equity of 15.51%. Analysts expect that BorgWarner Inc. will post 4.23 EPS for the current year.

Insider Activity at BorgWarner

In other BorgWarner news, CEO Frederic Lissalde sold 154,000 shares of the stock in a transaction on Monday, November 11th. The shares were sold at an average price of $34.61, for a total transaction of $5,329,940.00. Following the transaction, the chief executive officer now directly owns 259,957 shares of the company’s stock, valued at $8,997,111.77. This represents a 37.20 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, VP Stefan Demmerle sold 20,544 shares of the business’s stock in a transaction dated Wednesday, November 27th. The stock was sold at an average price of $34.28, for a total value of $704,248.32. Following the completion of the sale, the vice president now directly owns 206,969 shares of the company’s stock, valued at $7,094,897.32. This represents a 9.03 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 222,010 shares of company stock valued at $7,678,076. Insiders own 0.63% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of BWA. Personal CFO Solutions LLC lifted its position in BorgWarner by 137.9% in the fourth quarter. Personal CFO Solutions LLC now owns 31,159 shares of the auto parts company’s stock worth $991,000 after purchasing an additional 18,059 shares during the period. Amundi boosted its stake in BorgWarner by 20.2% in the 4th quarter. Amundi now owns 1,233,665 shares of the auto parts company’s stock valued at $39,071,000 after buying an additional 207,688 shares in the last quarter. Bank Julius Baer & Co. Ltd Zurich lifted its holdings in shares of BorgWarner by 9.5% during the fourth quarter. Bank Julius Baer & Co. Ltd Zurich now owns 153,547 shares of the auto parts company’s stock valued at $5,387,000 after acquiring an additional 13,290 shares during the period. Machina Capital S.A.S. increased its position in shares of BorgWarner by 88.8% during the 4th quarter. Machina Capital S.A.S. now owns 22,983 shares of the auto parts company’s stock worth $731,000 after purchasing an additional 10,810 shares in the last quarter. Finally, Edgestream Partners L.P. boosted its position in BorgWarner by 95.9% in the fourth quarter. Edgestream Partners L.P. now owns 212,085 shares of the auto parts company’s stock valued at $6,742,000 after buying an additional 103,825 shares in the last quarter. 95.67% of the stock is currently owned by institutional investors and hedge funds.

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.