BorgWarner (NYSE:BWA) Stock Price Down 4.7% – Should You Sell?

BorgWarner Inc. (NYSE:BWA) shares were down 4.7% during mid-day trading on Thursday . The stock traded as low as $28.31 and last traded at $28.82. Approximately 438,275 shares changed hands during mid-day trading, a decline of 83% from the average daily volume of 2,635,328 shares. The stock had previously closed at $30.25.

Wall Street Analyst Weigh In

Several analysts have recently commented on the stock. Guggenheim set a $38.00 price objective on shares of BorgWarner in a research report on Wednesday, March 5th. Barclays reduced their price target on shares of BorgWarner from $43.00 to $42.00 and set an “overweight” rating for the company in a report on Tuesday, February 11th. The Goldman Sachs Group dropped their price objective on shares of BorgWarner from $35.00 to $31.00 and set a “neutral” rating on the stock in a report on Thursday, January 16th. Morgan Stanley reduced their target price on BorgWarner from $45.00 to $40.00 and set an “overweight” rating for the company in a research note on Monday, March 3rd. Finally, JPMorgan Chase & Co. dropped their price target on BorgWarner from $51.00 to $49.00 and set an “overweight” rating on the stock in a research note on Monday, January 27th. Seven analysts have rated the stock with a hold rating and twelve have given a buy rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $39.06.

BorgWarner Price Performance

The firm has a market cap of $6.30 billion, a PE ratio of 20.02, a P/E/G ratio of 0.77 and a beta of 1.21. The company has a debt-to-equity ratio of 0.66, a current ratio of 1.79 and a quick ratio of 1.45. The business’s fifty day moving average is $30.23 and its 200-day moving average is $32.48.

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 analysts’ consensus estimates of $0.93 by $0.08. BorgWarner had a net margin of 2.40% and a return on equity of 15.93%. On average, research analysts predict that BorgWarner Inc. will post 4.28 earnings per share for the current fiscal year.

BorgWarner Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, March 17th. Stockholders of record on Monday, March 3rd were paid a dividend of $0.11 per share. The ex-dividend date of this dividend was Monday, March 3rd. This represents a $0.44 annualized dividend and a dividend yield of 1.54%. BorgWarner’s payout ratio is 30.77%.

Insider Activity at BorgWarner

In related news, EVP Tania Wingfield sold 24,000 shares of the firm’s stock in a transaction that occurred on Wednesday, March 5th. The shares were sold at an average price of $28.79, for a total value of $690,960.00. Following the completion of the transaction, the executive vice president now directly owns 39,110 shares of the company’s stock, valued at approximately $1,125,976.90. This trade represents a 38.03 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Tonit M. Calaway sold 8,300 shares of the business’s stock in a transaction on Monday, March 10th. The shares were sold at an average price of $30.07, for a total transaction of $249,581.00. Following the sale, the chief accounting officer now directly owns 242,257 shares in the company, valued at $7,284,667.99. The trade was a 3.31 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 45,800 shares of company stock worth $1,347,701. Company insiders own 0.45% of the company’s stock.

Hedge Funds Weigh In On BorgWarner

Hedge funds have recently made changes to their positions in the stock. Avior Wealth Management LLC boosted its stake in BorgWarner by 31.3% in the 4th quarter. Avior Wealth Management LLC now owns 1,435 shares of the auto parts company’s stock worth $46,000 after purchasing an additional 342 shares during the period. Janney Montgomery Scott LLC grew its stake in BorgWarner by 0.7% during the fourth quarter. Janney Montgomery Scott LLC now owns 54,432 shares of the auto parts company’s stock valued at $1,730,000 after acquiring an additional 381 shares in the last quarter. Wealth Enhancement Advisory Services LLC grew its stake in BorgWarner by 0.5% during the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 76,168 shares of the auto parts company’s stock valued at $2,421,000 after acquiring an additional 393 shares in the last quarter. Wellington Management Group LLP increased its holdings in BorgWarner by 1.4% during the 3rd quarter. Wellington Management Group LLP now owns 27,629 shares of the auto parts company’s stock worth $1,003,000 after acquiring an additional 394 shares during the period. Finally, Norinchukin Bank The lifted its stake in BorgWarner by 4.4% in the 4th quarter. Norinchukin Bank The now owns 9,501 shares of the auto parts company’s stock worth $302,000 after purchasing an additional 402 shares in the last quarter. 95.67% of the stock is currently owned by hedge funds and other institutional investors.

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.