Morgan Stanley Trims BorgWarner (BWA) Target Price to $55.00

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BorgWarner (NYSE:BWA) had its price target decreased by Morgan Stanley from $61.00 to $55.00 in a research report sent to investors on Wednesday morning. Morgan Stanley currently has a buy rating on the auto parts company’s stock.

Several other brokerages have also recently commented on BWA. BMO Capital Markets set a $60.00 target price on shares of BorgWarner and gave the stock a buy rating in a report on Thursday, September 20th. Citigroup lowered their target price on shares of BorgWarner from $59.00 to $52.00 and set a neutral rating on the stock in a report on Monday, July 30th. Wells Fargo & Co raised shares of BorgWarner from a market perform rating to an outperform rating and lowered their target price for the stock from $57.00 to $56.00 in a report on Wednesday, July 18th. Oppenheimer reduced their price target on shares of BorgWarner from $58.00 to $63.00 and set an outperform rating on the stock in a research report on Monday, July 23rd. Finally, ValuEngine lowered shares of BorgWarner from a sell rating to a strong sell rating in a research report on Saturday, September 1st. One analyst has rated the stock with a sell rating, five have given a hold rating and nine have given a buy rating to the stock. The stock presently has a consensus rating of Buy and a consensus target price of $54.23.

Shares of BWA opened at $39.78 on Wednesday. BorgWarner has a 12 month low of $35.71 and a 12 month high of $58.22. The company has a market cap of $8.29 billion, a PE ratio of 9.14, a price-to-earnings-growth ratio of 1.35 and a beta of 1.81. The company has a current ratio of 1.66, a quick ratio of 1.28 and a debt-to-equity ratio of 0.50.

BorgWarner (NYSE:BWA) last announced its earnings results on Thursday, October 25th. The auto parts company reported $1.00 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.99 by $0.01. BorgWarner had a net margin of 5.26% and a return on equity of 22.68%. The company had revenue of $2.48 billion for the quarter, compared to analysts’ expectations of $2.45 billion. As a group, equities analysts predict that BorgWarner will post 4.38 EPS for the current year.

The company also recently declared a quarterly dividend, which will be paid on Monday, December 17th. Investors of record on Monday, December 3rd will be given a dividend of $0.17 per share. The ex-dividend date is Friday, November 30th. This represents a $0.68 annualized dividend and a dividend yield of 1.71%. BorgWarner’s dividend payout ratio is 17.48%.

In related news, insider Brady D. Ericson sold 16,780 shares of the stock in a transaction that occurred on Monday, October 29th. The shares were sold at an average price of $39.70, for a total transaction of $666,166.00. Following the sale, the insider now owns 18,089 shares in the company, valued at approximately $718,133.30. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Thomas T. Stallkamp sold 7,692 shares of the firm’s stock in a transaction that occurred on Wednesday, October 31st. The shares were sold at an average price of $39.33, for a total transaction of $302,526.36. Following the completion of the sale, the director now owns 3,000 shares in the company, valued at approximately $117,990. The disclosure for this sale can be found here. Insiders have sold a total of 28,472 shares of company stock worth $1,126,972 in the last quarter. 0.74% of the stock is currently owned by company insiders.

Institutional investors have recently modified their holdings of the business. Twin Capital Management Inc. boosted its position in BorgWarner by 522.3% in the second quarter. Twin Capital Management Inc. now owns 52,540 shares of the auto parts company’s stock valued at $2,268,000 after buying an additional 44,097 shares in the last quarter. Toronto Dominion Bank boosted its position in BorgWarner by 33.2% in the second quarter. Toronto Dominion Bank now owns 143,291 shares of the auto parts company’s stock valued at $6,183,000 after buying an additional 35,719 shares in the last quarter. Biechele Royce Advisors boosted its position in BorgWarner by 5.7% in the third quarter. Biechele Royce Advisors now owns 133,330 shares of the auto parts company’s stock valued at $5,704,000 after buying an additional 7,140 shares in the last quarter. Douglas Lane & Associates LLC boosted its position in BorgWarner by 0.4% in the third quarter. Douglas Lane & Associates LLC now owns 1,161,180 shares of the auto parts company’s stock valued at $49,675,000 after buying an additional 5,163 shares in the last quarter. Finally, Advisors Capital Management LLC boosted its position in BorgWarner by 2.7% in the second quarter. Advisors Capital Management LLC now owns 59,842 shares of the auto parts company’s stock valued at $2,583,000 after buying an additional 1,580 shares in the last quarter. Hedge funds and other institutional investors own 93.45% of the company’s stock.

BorgWarner Company Profile

BorgWarner Inc provides solutions for combustion, hybrid, and electric vehicles worldwide. It operates through two segments, Engine and Drivetrain. The Engine segment develops and manufactures turbochargers; and timing systems, such as timing chains, variable cam timing products, crankshaft and camshaft sprockets, tensioners, guides and snubbers, front-wheel drive transmission chains, four-wheel drive chains for light vehicles, and hybrid power transmission chains.

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