BorgWarner Inc. (NYSE:BWA) Sees Large Drop in Short Interest

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BorgWarner Inc. (NYSE:BWA) saw a large decrease in short interest in the month of June. As of June 30th, there was short interest totalling 6,156,300 shares, a decrease of 6.6% from the May 30th total of 6,594,500 shares. Approximately 3.0% of the shares of the stock are sold short. Based on an average daily volume of 1,630,000 shares, the days-to-cover ratio is presently 3.8 days.

NYSE:BWA traded down $0.33 during trading hours on Monday, hitting $39.64. 30,002 shares of the stock were exchanged, compared to its average volume of 1,402,455. BorgWarner has a 52-week low of $32.46 and a 52-week high of $46.97. The business’s fifty day simple moving average is $39.69. The company has a current ratio of 1.62, a quick ratio of 1.27 and a debt-to-equity ratio of 0.44. The firm has a market cap of $8.21 billion, a P/E ratio of 8.84, a P/E/G ratio of 1.23 and a beta of 1.82.

BorgWarner (NYSE:BWA) last posted its quarterly earnings data on Thursday, April 25th. The auto parts company reported $1.00 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.94 by $0.06. BorgWarner had a return on equity of 21.64% and a net margin of 8.39%. The company had revenue of $2.57 billion during the quarter, compared to analyst estimates of $2.47 billion. During the same period in the previous year, the business earned $1.10 EPS. BorgWarner’s quarterly revenue was down 7.8% on a year-over-year basis. As a group, sell-side analysts expect that BorgWarner will post 4.2 earnings per share for the current fiscal year.

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 17th. Shareholders of record on Monday, June 3rd were paid a dividend of $0.17 per share. The ex-dividend date was Friday, May 31st. This represents a $0.68 annualized dividend and a yield of 1.72%. BorgWarner’s dividend payout ratio (DPR) is currently 15.18%.

A number of large investors have recently bought and sold shares of BWA. Norges Bank purchased a new stake in shares of BorgWarner in the fourth quarter valued at approximately $74,908,000. Harris Associates L P grew its position in shares of BorgWarner by 29.8% in the fourth quarter. Harris Associates L P now owns 6,663,643 shares of the auto parts company’s stock valued at $231,495,000 after purchasing an additional 1,530,716 shares in the last quarter. FMR LLC grew its position in shares of BorgWarner by 133.6% in the fourth quarter. FMR LLC now owns 2,625,297 shares of the auto parts company’s stock valued at $91,202,000 after purchasing an additional 1,501,562 shares in the last quarter. Dimensional Fund Advisors LP grew its position in shares of BorgWarner by 31.9% in the fourth quarter. Dimensional Fund Advisors LP now owns 3,636,739 shares of the auto parts company’s stock valued at $126,343,000 after purchasing an additional 879,547 shares in the last quarter. Finally, American Century Companies Inc. grew its position in shares of BorgWarner by 16.1% in the fourth quarter. American Century Companies Inc. now owns 4,052,606 shares of the auto parts company’s stock valued at $140,788,000 after purchasing an additional 563,019 shares in the last quarter. Institutional investors own 90.02% of the company’s stock.

A number of equities analysts recently weighed in on BWA shares. Zacks Investment Research cut Guaranty Federal Bancshares from a “hold” rating to a “sell” rating in a report on Tuesday, April 23rd. ValuEngine raised Ultrapar Participacoes from a “strong sell” rating to a “sell” rating in a report on Tuesday, June 4th. Morgan Stanley set a $12.00 price target on Adient and gave the stock a “sell” rating in a report on Wednesday, June 26th. Credit Suisse Group started coverage on Magna International in a report on Wednesday, June 26th. They issued a “neutral” rating and a $55.00 price target for the company. Finally, Barclays raised Encompass Health from an “equal weight” rating to an “overweight” rating and upped their price target for the stock from $68.00 to $70.00 in a report on Thursday, May 30th. Two investment analysts have rated the stock with a sell rating, five have issued a hold rating, ten have given a buy rating and one has issued a strong buy rating to the stock. The company currently has an average rating of “Buy” and an average target price of $48.01.

BorgWarner Company Profile

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

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