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

BorgWarner Inc. (NYSE:BWA) was the target of a significant increase in short interest in the month of October. As of October 31st, there was short interest totalling 7,460,000 shares, an increase of 7.2% from the October 15th total of 6,960,000 shares. Approximately 3.4% of the shares of the company are short sold. Based on an average daily trading volume, of 2,270,000 shares, the short-interest ratio is currently 3.3 days.

Insider Transactions at BorgWarner

In other BorgWarner news, CEO Frederic Lissalde sold 154,000 shares of the company’s stock in a transaction that occurred on Monday, November 11th. The stock was sold at an average price of $34.61, for a total value of $5,329,940.00. Following the completion of the sale, the chief executive officer now directly owns 259,957 shares in the company, valued at $8,997,111.77. This represents a 37.20 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP Isabelle Mckenzie sold 5,700 shares of the stock in a transaction on Monday, November 11th. The shares were sold at an average price of $34.62, for a total value of $197,334.00. Following the sale, the vice president now owns 37,640 shares of the company’s stock, valued at $1,303,096.80. This trade represents a 13.15 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 201,466 shares of company stock worth $6,973,828. Company insiders own 0.63% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Matrix Trust Co acquired a new position in BorgWarner in the third quarter worth about $25,000. Brooklyn Investment Group acquired a new position in BorgWarner in the third quarter worth about $32,000. LRI Investments LLC acquired a new stake in shares of BorgWarner during the first quarter worth approximately $35,000. Sentry Investment Management LLC acquired a new stake in shares of BorgWarner during the second quarter worth approximately $32,000. Finally, True Wealth Design LLC acquired a new stake in shares of BorgWarner during the third quarter worth approximately $38,000. Institutional investors and hedge funds own 95.67% of the company’s stock.

BorgWarner Stock Down 2.2 %

BorgWarner stock traded down $0.76 during mid-day trading on Tuesday, hitting $33.62. 320,757 shares of the company’s stock were exchanged, compared to its average volume of 2,674,108. The company has a current ratio of 1.84, a quick ratio of 1.48 and a debt-to-equity ratio of 0.66. BorgWarner has a 1-year low of $29.51 and a 1-year high of $38.22. The stock has a 50 day moving average of $34.30 and a two-hundred day moving average of $33.98. The stock has a market cap of $7.35 billion, a P/E ratio of 8.50, a P/E/G ratio of 0.71 and a beta of 1.20.

BorgWarner (NYSE:BWA) last released its quarterly earnings results on Thursday, October 31st. The auto parts company reported $1.09 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.92 by $0.17. BorgWarner had a net margin of 6.33% and a return on equity of 15.51%. The company had revenue of $3.45 billion during the quarter, compared to analysts’ expectations of $3.50 billion. During the same period in the prior year, the company earned $0.98 earnings per share. The business’s quarterly revenue was down 4.8% compared to the same quarter last year. As a group, analysts anticipate that BorgWarner will post 4.23 EPS for the current fiscal year.

BorgWarner Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, December 16th. Investors of record on Monday, December 2nd will be paid a $0.11 dividend. This represents a $0.44 annualized dividend and a dividend yield of 1.31%. The ex-dividend date is Monday, December 2nd. BorgWarner’s payout ratio is presently 11.17%.

Analyst Upgrades and Downgrades

Several analysts have issued reports on the stock. JPMorgan Chase & Co. cut their target price on shares of BorgWarner from $51.00 to $50.00 and set an “overweight” rating on the stock in a research note on Monday, October 21st. StockNews.com raised shares of BorgWarner from a “hold” rating to a “buy” rating in a research note on Friday, August 2nd. Evercore ISI raised shares of BorgWarner from an “in-line” rating to an “outperform” rating and boosted their target price for the company from $39.00 to $43.00 in a research note on Monday, October 14th. The Goldman Sachs Group cut their target price on shares of BorgWarner from $38.00 to $36.00 and set a “neutral” rating on the stock in a research note on Tuesday, October 1st. Finally, Deutsche Bank Aktiengesellschaft boosted their target price on shares of BorgWarner from $38.00 to $39.00 and gave the company a “hold” rating in a research note on Monday, November 4th. Six equities research analysts have rated the stock with a hold rating and ten have issued a buy rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $41.21.

BorgWarner Company Profile

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.