BorgWarner (NYSE:BWA) Board of Directors Announces Stock Buyback Plan

BorgWarner (NYSE:BWA) declared that its Board of Directors has approved a stock buyback plan on Thursday, May 2nd, RTT News reports. The company plans to repurchase $500.00 million in shares. This repurchase authorization permits the auto parts company to repurchase up to 6% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s board of directors believes its shares are undervalued.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on BWA shares. Wells Fargo & Company increased their price objective on BorgWarner from $43.00 to $45.00 and gave the stock an “overweight” rating in a research report on Friday. BNP Paribas cut shares of BorgWarner from an “outperform” rating to a “neutral” rating and decreased their price objective for the stock from $43.00 to $35.00 in a research report on Tuesday, February 20th. Oppenheimer lifted their target price on shares of BorgWarner from $39.00 to $40.00 and gave the company an “outperform” rating in a research report on Friday. TD Cowen increased their price target on shares of BorgWarner from $36.00 to $40.00 and gave the stock a “buy” rating in a report on Friday. Finally, StockNews.com raised shares of BorgWarner from a “hold” rating to a “buy” rating in a report on Monday. Seven investment analysts have rated the stock with a hold rating and eleven have issued a buy rating to the stock. According to data from MarketBeat, BorgWarner currently has an average rating of “Moderate Buy” and a consensus target price of $43.76.

BorgWarner Trading Down 0.4 %

Shares of NYSE:BWA traded down $0.14 during trading on Tuesday, reaching $36.80. 2,677,064 shares of the company traded hands, compared to its average volume of 2,895,630. The company has a current ratio of 1.54, a quick ratio of 1.20 and a debt-to-equity ratio of 0.55. BorgWarner has a 52-week low of $29.51 and a 52-week high of $50.04. The business’s fifty day moving average is $33.23 and its 200-day moving average is $33.68. The firm has a market capitalization of $8.38 billion, a price-to-earnings ratio of 13.99, a P/E/G ratio of 1.08 and a beta of 1.30.

BorgWarner (NYSE:BWA) last announced its quarterly earnings results on Thursday, May 2nd. The auto parts company reported $1.03 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.87 by $0.16. The business had revenue of $3.60 billion for the quarter, compared to analyst estimates of $3.51 billion. BorgWarner had a net margin of 4.02% and a return on equity of 15.33%. The company’s revenue was up 6.3% on a year-over-year basis. During the same quarter last year, the firm earned $1.09 EPS. As a group, analysts forecast that BorgWarner will post 3.94 EPS for the current year.

BorgWarner Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 17th. Shareholders of record on Monday, June 3rd will be issued a $0.11 dividend. This represents a $0.44 annualized dividend and a yield of 1.20%. The ex-dividend date is Monday, June 3rd. BorgWarner’s dividend payout ratio (DPR) is currently 16.67%.

Insider Transactions at BorgWarner

In related news, VP Stefan Demmerle sold 3,000 shares of BorgWarner stock in a transaction on Tuesday, March 5th. The shares were sold at an average price of $31.29, for a total value of $93,870.00. Following the sale, the vice president now owns 252,013 shares in the company, valued at $7,885,486.77. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. In other BorgWarner news, VP Stefan Demmerle sold 3,000 shares of BorgWarner stock in a transaction that occurred on Tuesday, March 5th. The stock was sold at an average price of $31.29, for a total transaction of $93,870.00. Following the sale, the vice president now directly owns 252,013 shares of the company’s stock, valued at approximately $7,885,486.77. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Frederic Lissalde sold 225,900 shares of the stock in a transaction that occurred on Wednesday, February 14th. The stock was sold at an average price of $31.08, for a total value of $7,020,972.00. Following the completion of the transaction, the chief executive officer now directly owns 455,227 shares of the company’s stock, valued at approximately $14,148,455.16. The disclosure for this sale can be found here. In the last three months, insiders have sold 287,503 shares of company stock worth $9,015,478. 0.63% of the stock is currently owned by insiders.

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.