BorgWarner Inc. (NYSE:BWA) Upgraded at Zacks Investment Research

BorgWarner Inc. (NYSE:BWA) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued on Tuesday, July 18th.

According to Zacks, “High organic net sales growth expectations are likely to aid BorgWarner going forward. Huge business opportunities in Asia, the Americas and Europe in the next three years are anticipated to contribute to a major portion of growth. Also, a healthy balance sheet and ample cash flows help the company return capital to shareholders and undertake acquisitions. Moreover, BorgWarner is poised to benefit from its expansion strategy. BorgWarner has outperformed the Zacks categorized Auto/Truck Original Equipment industry in the last three months. However, the company is facing foreign currency headwinds and pressure from original equipment manufacturers (OEM) to reduce prices, which might pose a threat to the company. Due to foreign currency fluctuations it might face a negative impact of upto $310 million in fiscal 2017.”

BWA has been the topic of several other research reports. Deutsche Bank AG boosted their target price on BorgWarner from $51.00 to $54.00 and gave the company a “buy” rating in a research note on Friday, April 28th. Bank of America Corporation restated an “underperform” rating and issued a $27.00 target price (down previously from $30.00) on shares of BorgWarner in a research note on Friday, June 16th. Morgan Stanley dropped their price objective on BorgWarner from $34.00 to $32.00 and set an “underweight” rating on the stock in a research note on Friday, June 9th. BMO Capital Markets upped their price objective on BorgWarner from $48.00 to $50.00 and gave the stock an “outperform” rating in a research note on Monday, May 1st. Finally, Jefferies Group LLC reiterated a “buy” rating and set a $50.00 price objective (up previously from $48.00) on shares of BorgWarner in a research note on Saturday, April 29th. Three investment analysts have rated the stock with a sell rating, ten have issued a hold rating and six have assigned a buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and an average target price of $42.13.

BorgWarner (NYSE BWA) opened at 46.68 on Tuesday. BorgWarner has a 12 month low of $32.72 and a 12 month high of $48.03. The company’s 50-day moving average is $43.99 and its 200 day moving average is $41.98. The company has a market cap of $9.85 billion, a price-to-earnings ratio of 52.04 and a beta of 1.73.

BorgWarner (NYSE:BWA) last released its earnings results on Thursday, July 27th. The auto parts company reported $0.96 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.89 by $0.07. The firm had revenue of $2.39 billion for the quarter, compared to analysts’ expectations of $2.27 billion. BorgWarner had a return on equity of 20.75% and a net margin of 2.06%. The business’s quarterly revenue was up 2.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.84 EPS. Equities analysts forecast that BorgWarner will post $3.70 earnings per share for the current fiscal year.

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In related news, Director Dennis C. Cuneo sold 1,000 shares of the stock in a transaction on Tuesday, June 13th. The stock was sold at an average price of $44.06, for a total value of $44,060.00. Following the sale, the director now owns 13,398 shares in the company, valued at approximately $590,315.88. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.66% of the stock is currently owned by corporate insiders.

A number of hedge funds and other institutional investors have recently modified their holdings of BWA. CENTRAL TRUST Co raised its position in shares of BorgWarner by 5.3% in the second quarter. CENTRAL TRUST Co now owns 2,679 shares of the auto parts company’s stock worth $114,000 after buying an additional 135 shares in the last quarter. Van ECK Associates Corp raised its position in shares of BorgWarner by 6.8% in the first quarter. Van ECK Associates Corp now owns 2,702 shares of the auto parts company’s stock worth $113,000 after buying an additional 171 shares in the last quarter. Harel Insurance Investments & Financial Services Ltd. purchased a new position in shares of BorgWarner during the first quarter worth approximately $105,000. SRS Capital Advisors Inc. raised its position in shares of BorgWarner by 13.7% in the first quarter. SRS Capital Advisors Inc. now owns 2,929 shares of the auto parts company’s stock worth $122,000 after buying an additional 354 shares in the last quarter. Finally, Whittier Trust Co. raised its position in shares of BorgWarner by 6.4% in the first quarter. Whittier Trust Co. now owns 3,165 shares of the auto parts company’s stock worth $132,000 after buying an additional 189 shares in the last quarter. 91.65% of the stock is currently owned by hedge funds and other institutional investors.

BorgWarner Company Profile

BorgWarner Inc is engaged in providing technology solutions for combustion, hybrid and electric vehicles. The Company’s segments include Engine and Drivetrain. The Engine segment’s products include turbochargers, timing devices and chains, emissions systems and thermal systems. The Engine segment develops and manufactures products for gasoline and diesel engines, and alternative powertrains.

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