BorgWarner Inc. (NYSE:BWA) finished Thursday with a subtraction of -$0.96 to close at $40.51, a downside of -2.31 percent. An average of 1,766,085 shares of common stock have been traded in the last five days. There was a fall of -$1.96 in the past week, and it reached a new high 18 times over the past 12 months. The last 20 days have seen an average of 2,051,851 shares traded, while the 50-day average volume stands at 2,643,333.
BWA stock has decreased by -13.72% in the last month. The company shares reached their 1-month lowest point of $40.52 on 08/11/23. With the stock rallying to its 52-week high on 03/03/23, shares of the company touched a low of $27.39 and a high of $47.05 in 52 weeks. It has reached a new high 17 times so far this year and achieved 14.42% or $0.31 in price. In spite of this, the price is down -13.90% from the 52-week high.
Insider Transactions
BWA stock investors should be aware that BorgWarner Inc. (BWA) stock had its last reported insider trading activity 58 days ago on Jun 14. In this transaction, the insider spent $238,050. Vice President, Fadool Joseph F., disposed of 210 shares at a price of $46.70 on May 30. The insider now owns more than $9,818 worth of shares. Prior to that, Vice President Fadool Joseph F. went on to Sale 631 shares at $47.16 each on May 26. An amount of $29,744 was transacted.
Valuation Metrics
BorgWarner Inc. (BWA) has a trailing price-to-earnings (P/E) ratio of 10.02. The stock’s beta is 1.45. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.55, the price-to-book (PB) ratio at 1.25, and the price-to-cash flow ratio at 21.25.
The company has a payout ratio of 16.70%. The company’s most recent quarterly dividend payment was $0.11 a share, representing a down of -35.29% from $0.17 last year. Its latest decrease dividend $0.06 reported on Monday June 26 2023.
Financial Health
The quick ratio of BorgWarner Inc. for the three months ended June 29 was 1.20, and the current ratio was 1.60, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.56 and a total debt to equity ratio of 0.56 for the quarter ending June 29. BorgWarner Inc.’s EBITDA margin for the year ending June 29 is 13.86%, while its operating margin for the same period stands at 8.70%. Its gross profit as reported stood at $3.1 billion compared to revenue of $15.8 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, BorgWarner Inc.’s return on assets was 5.60%.
Earnings Surprise
For the three-month period that ended June 29, BorgWarner Inc. had $4.19 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $204.0 million in the quarter, while revenues were shrunk -5.88%. The analyst consensus anticipated BorgWarner Inc.’s latest quarter earnings to come in at $1.08 per share, but it turned out to be $1.35, a 25.00% surprise. For the quarter, EBITDA amounted to $569.0 million. Shareholders own equity worth $235.06 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at BorgWarner Inc. (BWA) price momentum. RSI 9-day as of the close on 10 August was 26.12%, suggesting the stock is oversold, with historical volatility in this time frame at 43.43%.
As of today, BWA’s price is $41.73 -4.61% or -$1.96 from its 5-day moving average. BWA is currently trading -11.09% lower than its 20-day SMA and -11.88% lower than its 100-day SMA. However, the stock’s current price level is -8.50% below the SMA50 and +13.80% above the SMA200.
The stochastic %K and %D were 10.23% and 14.81%, respectively, and the average true range (ATR) was 1.23. With the 14-day stochastic at 0.64% and the average true range at 1.22, the RSI (14) stands at 31.59%. The stock has reached -0.99 on the 9-day MACD Oscillator while the 14-day reading was at -2.33.
Analyst Ratings
BofA Securities upgraded BorgWarner Inc. (NYSE: BWA) to a a Buy rating in its most recent analyst report. Previously, the stock was rated as a Neutral. The consensus rating for BorgWarner Inc. (BWA) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell BWA, while 6 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 4 analysts, while 9 others rate it as a “buy”.
What is BWA’s price target for the next 12 months?
Analysts predict a range of price targets between $43.01 and $67.00, with a median target of $52.00. Taking a look at these predictions, the average price target given by analysts for BorgWarner Inc. (BWA) stock is $52.12.
