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Zacks Research Forecasts Stronger Earnings for BorgWarner

BorgWarner logo with Auto/Tires/Trucks background

BorgWarner Inc. (NYSE:BWA - Free Report) - Analysts at Zacks Research upped their FY2024 EPS estimates for BorgWarner in a research note issued on Thursday, November 21st. Zacks Research analyst R. Department now expects that the auto parts company will post earnings of $4.17 per share for the year, up from their previous estimate of $4.14. The consensus estimate for BorgWarner's current full-year earnings is $4.22 per share. Zacks Research also issued estimates for BorgWarner's Q4 2024 earnings at $0.86 EPS, Q2 2025 earnings at $1.20 EPS, Q4 2025 earnings at $1.12 EPS and Q2 2026 earnings at $1.34 EPS.

BorgWarner (NYSE:BWA - Get Free Report) last posted its earnings results on Thursday, October 31st. The auto parts company reported $1.09 earnings per share 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 firm had revenue of $3.45 billion during the quarter, compared to analyst estimates of $3.50 billion. During the same period last year, the firm posted $0.98 earnings per share. BorgWarner's revenue for the quarter was down 4.8% compared to the same quarter last year.

Several other research analysts have also issued reports on the company. The Goldman Sachs Group decreased their price target on shares of BorgWarner from $38.00 to $36.00 and set a "neutral" rating for the company in a report on Tuesday, October 1st. Deutsche Bank Aktiengesellschaft raised their price objective on BorgWarner from $38.00 to $39.00 and gave the stock a "hold" rating in a research note on Monday, November 4th. Wolfe Research assumed coverage on shares of BorgWarner in a report on Thursday, September 5th. They issued a "peer perform" rating on the stock. Wells Fargo & Company dropped their price objective on shares of BorgWarner from $44.00 to $42.00 and set an "overweight" rating on the stock in a report on Thursday, August 1st. Finally, StockNews.com upgraded BorgWarner from a "hold" rating to a "buy" rating in a research report on Friday, August 2nd. Six investment analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company's stock. According to data from MarketBeat.com, BorgWarner has an average rating of "Moderate Buy" and an average target price of $41.21.

Check Out Our Latest Report on BWA

BorgWarner Stock Up 3.1 %

Shares of BWA traded up $1.06 during midday trading on Monday, reaching $35.18. 2,370,585 shares of the stock were exchanged, compared to its average volume of 2,665,034. The company has a current ratio of 1.84, a quick ratio of 1.48 and a debt-to-equity ratio of 0.66. The company's 50 day moving average is $34.50 and its two-hundred day moving average is $33.87. The company has a market capitalization of $7.69 billion, a P/E ratio of 8.93, a PEG ratio of 0.75 and a beta of 1.20. BorgWarner has a 52 week low of $29.51 and a 52 week high of $38.22.

BorgWarner Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, December 16th. Shareholders of record on Monday, December 2nd will be given a dividend of $0.11 per share. The ex-dividend date of this dividend is Monday, December 2nd. This represents a $0.44 dividend on an annualized basis and a yield of 1.25%. BorgWarner's payout ratio is 11.17%.

Insiders Place Their Bets

In related news, VP Stefan Demmerle sold 21,500 shares of the company's stock in a transaction on Thursday, November 14th. The stock was sold at an average price of $34.79, for a total value of $747,985.00. Following the completion of the transaction, the vice president now directly owns 227,513 shares in the company, valued at approximately $7,915,177.27. This represents a 8.63 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Frederic Lissalde sold 154,000 shares of the stock in a transaction dated Monday, November 11th. The stock was sold at an average price of $34.61, for a total transaction of $5,329,940.00. Following the transaction, the chief executive officer now owns 259,957 shares in the company, valued at approximately $8,997,111.77. The trade was a 37.20 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 201,466 shares of company stock valued at $6,973,828. Corporate insiders own 0.45% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. Toronto Dominion Bank increased its holdings in shares of BorgWarner by 33.4% in the 1st quarter. Toronto Dominion Bank now owns 137,876 shares of the auto parts company's stock worth $4,790,000 after acquiring an additional 34,488 shares during the period. Quadrature Capital Ltd bought a new stake in shares of BorgWarner in the 1st quarter worth $285,000. LRI Investments LLC acquired a new stake in BorgWarner in the 1st quarter valued at about $35,000. Paloma Partners Management Co bought a new stake in BorgWarner during the first quarter worth approximately $314,000. Finally, Jacobs Levy Equity Management Inc. grew its holdings in shares of BorgWarner by 10.2% in the 1st quarter. Jacobs Levy Equity Management Inc. now owns 1,352,423 shares of the auto parts company's stock worth $46,983,000 after acquiring an additional 125,727 shares during the last quarter. 95.67% of the stock is owned by institutional investors and hedge funds.

About BorgWarner

(Get Free Report)

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.

See Also

Earnings History and Estimates for BorgWarner (NYSE:BWA)

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