BorgWarner Inc. (NYSE:BWA) Sees Significant Increase in Short Interest

BorgWarner Inc. (NYSE:BWA) was the recipient of a significant growth in short interest in December. As of December 15th, there was short interest totalling 9,600,000 shares, a growth of 9.7% from the November 30th total of 8,750,000 shares. Approximately 4.4% of the shares of the company are sold short. Based on an average trading volume of 2,160,000 shares, the days-to-cover ratio is presently 4.4 days.

Wall Street Analyst Weigh In

Several equities analysts recently commented on BWA shares. The Goldman Sachs Group decreased their price target 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. Deutsche Bank Aktiengesellschaft upped their price target 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. Wells Fargo & Company decreased their price target on shares of BorgWarner from $42.00 to $40.00 and set an “overweight” rating on the stock in a research note on Monday, December 16th. Guggenheim restated a “buy” rating and issued a $41.00 price target on shares of BorgWarner in a research note on Thursday, December 12th. Finally, Evercore ISI upgraded shares of BorgWarner from an “in-line” rating to an “outperform” rating and upped their price target for the company from $39.00 to $43.00 in a research note on Monday, October 14th. Six equities research analysts have rated the stock with a hold rating and eleven have given a buy rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $41.07.

BorgWarner Trading Up 0.5 %

NYSE BWA opened at $31.79 on Thursday. The company has a quick ratio of 1.48, a current ratio of 1.84 and a debt-to-equity ratio of 0.66. The company has a market cap of $6.95 billion, a price-to-earnings ratio of 8.07, a price-to-earnings-growth ratio of 0.77 and a beta of 1.19. BorgWarner has a twelve month low of $29.51 and a twelve month high of $38.22. The business’s fifty day moving average is $33.67 and its 200 day moving average is $33.44.

BorgWarner (NYSE:BWA) last issued its quarterly earnings results on Thursday, October 31st. The auto parts company reported $1.09 EPS for the quarter, topping analysts’ consensus estimates of $0.92 by $0.17. The company had revenue of $3.45 billion for the quarter, compared to analyst estimates of $3.50 billion. BorgWarner had a net margin of 6.33% and a return on equity of 15.51%. BorgWarner’s revenue was down 4.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.98 earnings per share. As a group, sell-side analysts expect that BorgWarner will post 4.22 EPS for the current fiscal year.

BorgWarner Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, December 16th. Shareholders of record on Monday, December 2nd were issued a $0.11 dividend. The ex-dividend date of this dividend was Monday, December 2nd. This represents a $0.44 dividend on an annualized basis and a yield of 1.38%. BorgWarner’s payout ratio is currently 11.17%.

Insiders Place Their Bets

In other news, VP Stefan Demmerle sold 21,500 shares of the stock in a transaction dated Thursday, November 14th. The shares were sold at an average price of $34.79, for a total value of $747,985.00. Following the transaction, the vice president now directly owns 227,513 shares of the company’s stock, valued at $7,915,177.27. This represents a 8.63 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Paul Arthur Farrell sold 20,266 shares of the stock in a transaction dated Monday, November 11th. The shares were sold at an average price of $34.47, for a total transaction of $698,569.02. Following the completion of the transaction, the executive vice president now directly owns 32,366 shares in the company, valued at $1,115,656.02. The trade was a 38.51 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 222,010 shares of company stock valued at $7,678,076. 0.45% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On BorgWarner

Institutional investors have recently added to or reduced their stakes in the business. Studio Investment Management LLC grew its stake in shares of BorgWarner by 12.4% in the 3rd quarter. Studio Investment Management LLC now owns 2,813 shares of the auto parts company’s stock valued at $102,000 after buying an additional 310 shares during the period. Spectrum Asset Management Inc. NB CA raised its stake in BorgWarner by 0.5% during the 3rd quarter. Spectrum Asset Management Inc. NB CA now owns 59,457 shares of the auto parts company’s stock worth $2,158,000 after buying an additional 316 shares during the period. Alpha Omega Wealth Management LLC raised its stake in BorgWarner by 2.2% during the 3rd quarter. Alpha Omega Wealth Management LLC now owns 16,599 shares of the auto parts company’s stock worth $602,000 after buying an additional 350 shares during the period. Wellington Management Group LLP raised its stake in BorgWarner by 1.4% during the 3rd quarter. Wellington Management Group LLP now owns 27,629 shares of the auto parts company’s stock worth $1,003,000 after buying an additional 394 shares during the period. Finally, PFG Investments LLC raised its stake in BorgWarner by 4.6% during the 3rd quarter. PFG Investments LLC now owns 9,435 shares of the auto parts company’s stock worth $342,000 after buying an additional 414 shares during the period. 95.67% of the stock is owned by institutional investors and hedge funds.

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.