As of Thursday close, BorgWarner Inc.’s (NYSE:BWA) stock was down -$1.58, moving down -3.68 percent to $41.40. The average number of shares traded per day over the past five days has been 2,895,820 shares. 2 times new highs have been achieved over the past 5 days, with a -$4.37 fall in that time frame. In the last twenty days, the average volume was 2,223,075, while in the previous 50 days, it was 2,723,216.
Since last month, BWA stock retreated -4.12%. Shares of the company fell to $41.31 on 08/03/23, the lowest level in the past month. A 52-week high of $47.05 was reached on 03/03/23 after having rallying from a 52-week low of $27.39. Since the beginning of this year, BWA’s stock price has risen by 16.94% or $1.15, and marked a new high 17 times. However, the stock has declined by -12.01% since its 52-week high.
BWA stock investors should be aware that BorgWarner Inc. (BWA) stock had its last reported insider trading activity 51 days ago on Jun 14. Demmerle Stefan, the Vice President of the company, disposed of 5,000 shares for $47.61 on Jun 14. It resulted in a $238,050 divestment by the insider. Fadool Joseph F. sold 210 shares at an average price of $46.70 on May 30. The insider now owns 0 shares following the transaction. On May 26, Vice President Fadool Joseph F. sold 631 shares at $47.16 apiece. The transaction was valued at $29,744.
Valuation Metrics
Right now, BorgWarner Inc. (BWA) has a P/E ratio of about 10.15. The stock’s beta is 1.44. Besides these, the trailing price-to-sales (P/S) ratio of 0.60, the price-to-book (PB) ratio of 1.30, and the price-to-cash flow ratio of 20.98 may also be considered.
The latest dividend of $0.11 per share was paid out, which is -35.29% less than last year’s $0.17. On Monday June 26 2023, a $0.06 dividend decrease was announced.
Financial Health
In the three months ended June 29, BorgWarner Inc.’s quick ratio stood at 1.20, while its current ratio was 1.60, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 0.56, and the total debt-to-equity ratio was 0.57. On the profitability front, the trailing twelve-month gross margin is 19.30% percent. In the year ended June 29, EBITDA margin amounted to 13.86%, whereas operating margins totaled 8.50%. Based on annual data, BWA earned $3.1 billion in gross profit and brought in $15.8 billion in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 9.40%. Return on equity (ROE) for the past 12 months was 13.60%.
In BorgWarner Inc.’s quarter-end financial report for June 29, it reported total debt of $4.19 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. BWA’s revenue rose 16.84% to $4.18 billion during the quarter, while net income inched up to $4.52 billion. While analysts expected BorgWarner Inc. to report $1.08 quarterly earnings, the actual figure was $1.35 per share, beating the consensus estimate by 25.00%. During the quarter, the company generated $569.0 million in EBITDA. The liabilities of BorgWarner Inc. were 9.54 billion at the end of its most recent quarter ended June 29, and its total debt was $4.45 billion. The value of shareholders’ equity is $235.06 million.
Technical Picture
This quick technical analysis looks at BorgWarner Inc.’s (BWA) price momentum. With a historical volatility rate of 41.83%, the RSI 9-day stood at 22.07% on 03 August.
With respect to its five-day moving average, the current BorgWarner Inc. price is down by -9.55% percent or -$4.37. At present, BWA shares trade -7.77% below its 20-day simple moving average and -13.64% percent below its 100-day simple moving average. However, the stock is currently trading approximately -13.10% below its SMA50 and +24.66% above its SMA200.
Stochastic coefficient K was 24.94% and Stochastic coefficient D was 46.99%, while ATR was 1.26. Given the Stochastic reading of 1.73% for the 14-day period, the RSI (14) reading has been calculated as 30.46%. As of today, the MACD Oscillator reading stands at -1.70, while the 14-day reading stands at -1.89.
Analyst Ratings
BofA Securities upgraded its rating on BorgWarner Inc. (NYSE: BWA) to a Buy in a note to investors on July 06, 2023. The analysts firm previously had a Neutral rating on the stock.BorgWarner Inc. (BWA) has been rated Overweight by analysts. According to 0 brokerage firms, BWA is a sell, and 6 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 4 analysts rate BorgWarner Inc. stock as buy, with 9 recommending it as overweight.
With a median target price of $52.00, the current consensus forecast for the stock is $43.01 – $58.93. Based on these forecasts, analysts predict BorgWarner Inc. (BWA) will achieve an average price target of $51.34.
