BorgWarner (NYSE:BWA) Sets New 12-Month Low - Should You Sell?

BorgWarner Inc. (NYSE:BWA - Get Free Report) reached a new 52-week low during mid-day trading on Friday . The stock traded as low as $29.33 and last traded at $30.02, with a volume of 783816 shares traded. The stock had previously closed at $30.24.

Analysts Set New Price Targets

Several research firms have issued reports on BWA. StockNews.com lowered shares of BorgWarner from a "buy" rating to a "hold" rating in a research report on Friday. Barclays decreased their target price on shares of BorgWarner from $43.00 to $42.00 and set an "overweight" rating on the stock in a research report on Tuesday. Deutsche Bank Aktiengesellschaft lifted their target price on shares of BorgWarner from $38.00 to $39.00 and gave the company a "hold" rating in a research report on Monday, November 4th. The Goldman Sachs Group decreased their target price on shares of BorgWarner from $35.00 to $31.00 and set a "neutral" rating on the stock in a research report on Thursday, January 16th. Finally, Guggenheim reissued a "buy" rating and set a $41.00 price target on shares of BorgWarner in a report on Thursday, December 12th. Seven equities research analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company's stock. According to MarketBeat, BorgWarner has an average rating of "Moderate Buy" and a consensus price target of $40.20.

BorgWarner Stock Performance

The firm's 50-day moving average price is $32.32 and its 200 day moving average price is $33.27. The company has a debt-to-equity ratio of 0.66, a quick ratio of 1.48 and a current ratio of 1.79. The company has a market cap of $6.45 billion, a price-to-earnings ratio of 20.62, a PEG ratio of 0.63 and a beta of 1.18.

BorgWarner (NYSE:BWA - Get Free Report) last issued its quarterly earnings results on Thursday, February 6th. The auto parts company reported $1.01 EPS for the quarter, topping the consensus estimate of $0.93 by $0.08. BorgWarner had a net margin of 2.40% and a return on equity of 15.93%. On average, sell-side analysts anticipate that BorgWarner Inc. will post 4.54 EPS for the current year.

BorgWarner Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, March 17th. Investors of record on Monday, March 3rd will be issued a dividend of $0.11 per share. This represents a $0.44 dividend on an annualized basis and a yield of 1.49%. The ex-dividend date of this dividend is Monday, March 3rd. BorgWarner's dividend payout ratio is currently 30.77%.

Insider Activity at BorgWarner

In other news, VP Stefan Demmerle sold 20,544 shares of the company's stock in a transaction that occurred on Wednesday, November 27th. The shares were sold at an average price of $34.28, for a total value of $704,248.32. Following the completion of the transaction, the vice president now owns 206,969 shares in the company, valued at $7,094,897.32. This represents a 9.03 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 0.45% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Wellington Management Group LLP boosted its holdings in shares of BorgWarner by 1.4% in the third quarter. Wellington Management Group LLP now owns 27,629 shares of the auto parts company's stock valued at $1,003,000 after buying an additional 394 shares during the period. Mirabella Financial Services LLP acquired a new position in shares of BorgWarner in the third quarter valued at approximately $908,000. Merit Financial Group LLC boosted its holdings in shares of BorgWarner by 33.2% in the fourth quarter. Merit Financial Group LLC now owns 18,198 shares of the auto parts company's stock valued at $579,000 after buying an additional 4,537 shares during the period. Swedbank AB lifted its position in shares of BorgWarner by 236.5% in the third quarter. Swedbank AB now owns 844,112 shares of the auto parts company's stock worth $30,633,000 after purchasing an additional 593,265 shares in the last quarter. Finally, HITE Hedge Asset Management LLC lifted its position in shares of BorgWarner by 28.4% in the third quarter. HITE Hedge Asset Management LLC now owns 290,317 shares of the auto parts company's stock worth $10,536,000 after purchasing an additional 64,126 shares in the last quarter. Institutional investors and hedge funds own 95.67% of the company's stock.

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.