According to Zacks, “BorgWarner is witnessing a decline in light-vehicle production across all of its major markets. Softening demand in China and concerns overWLTP certification in Europe are expected to hurt the company’s sales in coming quarters. Also, volatile foreign currencies, tariff costs, supplier bankruptcy are other headwinds. With such a weak backdrop, it expects net sales of $9.90-$10.37 billion and net earnings of $4-$4.25 per share in 2019. Over the past three months, shares of BorgWarner have underperformed the industry it belongs to. However, strong backlogs and increasing demand for hybrid and electric propulsion engines are likely to outgrow BorgWarner’s market presence in 2019. The company will announce first-quarter 2019 results on Apr 25.”
Several other analysts have also recently issued reports on BWA. Barclays set a $36.00 target price on shares of BorgWarner and gave the company a “hold” rating in a research report on Friday, January 4th. ValuEngine upgraded shares of BorgWarner from a “strong sell” rating to a “sell” rating in a research report on Thursday, January 10th. Morgan Stanley set a $53.00 target price on shares of BorgWarner and gave the company a “buy” rating in a research report on Tuesday, January 29th. TheStreet raised shares of BorgWarner from a “c+” rating to a “b-” rating in a research report on Thursday, January 31st. Finally, Seaport Global Securities assumed coverage on shares of BorgWarner in a research report on Wednesday, February 13th. They issued a “neutral” rating on the stock. Two analysts have rated the stock with a sell rating, six have assigned a hold rating, nine have assigned 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 $48.83.
BorgWarner (NYSE:BWA) last announced its earnings results on Thursday, February 14th. The auto parts company reported $1.21 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.07 by $0.14. The firm had revenue of $2.57 billion for the quarter, compared to analysts’ expectations of $2.55 billion. BorgWarner had a net margin of 8.84% and a return on equity of 22.70%. The business’s revenue was down .5% compared to the same quarter last year. During the same period in the prior year, the company earned $1.07 EPS. On average, equities analysts predict that BorgWarner will post 4.21 EPS for the current fiscal year.
In other news, EVP Tonit M. Calaway sold 12,000 shares of the firm’s stock in a transaction that occurred on Monday, February 25th. The shares were sold at an average price of $41.93, for a total transaction of $503,160.00. Following the transaction, the executive vice president now directly owns 28,066 shares of the company’s stock, valued at $1,176,807.38. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, VP Joel Wiegert sold 6,000 shares of the firm’s stock in a transaction that occurred on Thursday, March 7th. The stock was sold at an average price of $38.74, for a total transaction of $232,440.00. Following the transaction, the vice president now directly owns 27,420 shares in the company, valued at $1,062,250.80. The disclosure for this sale can be found here. Insiders sold a total of 29,784 shares of company stock worth $1,230,456 over the last three months. 0.75% of the stock is currently owned by corporate insiders.
Several large investors have recently modified their holdings of the company. Brinker Capital Inc. purchased a new position in shares of BorgWarner during the first quarter worth approximately $291,000. Hanson & Doremus Investment Management increased its position in shares of BorgWarner by 67.8% during the first quarter. Hanson & Doremus Investment Management now owns 15,930 shares of the auto parts company’s stock worth $612,000 after acquiring an additional 6,438 shares during the period. CWM LLC increased its position in shares of BorgWarner by 137.9% during the first quarter. CWM LLC now owns 2,626 shares of the auto parts company’s stock worth $101,000 after acquiring an additional 1,522 shares during the period. Strs Ohio increased its position in shares of BorgWarner by 8.2% during the first quarter. Strs Ohio now owns 993,798 shares of the auto parts company’s stock worth $38,171,000 after acquiring an additional 75,174 shares during the period. Finally, IFM Investors Pty Ltd increased its position in shares of BorgWarner by 16.7% during the first quarter. IFM Investors Pty Ltd now owns 15,246 shares of the auto parts company’s stock worth $586,000 after acquiring an additional 2,184 shares during the period. 91.29% of the stock is currently owned by institutional investors and hedge funds.
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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