The stock of BorgWarner Inc. (NYSE:BWA) increased by $0.33 on Tuesday to finish at $41.23, up 0.81 percent. The last five days have seen an average of 2,920,120 shares of common stock traded. 17 times new highs were reached in the current year, with a gain of $0.98. The average number of shares traded over the last 20 days was 1,886,860, while the average volume over the last 50 days totaled 2,027,168.
BWA stock appreciated 4.01% since last month. On 08/23/23, the company’s shares reached a one-month low of $39.18. The stock touched a high of $47.05 on 03/03/23, after rallying from a low of $27.39 in 52 weeks. The price of BWA stock has risen by 16.46% or $0.98 this year, reaching a new high 17 times. Still, the stock price is down -12.37% 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 98 days ago on Jun 14. On Jun 14, Vice President Demmerle Stefan sold 5,000 shares at $47.61 each. This transaction resulted in the insider making $238,050. On May 30, Fadool Joseph F. sold 210 shares at a price of US$46.70. After the transaction, the insider now owns 0 shares. Vice President Fadool Joseph F. had earlier sold 631 shares on May 26 for $47.16 a share. The transaction was completed for $29,744.
Valuation Metrics
BorgWarner Inc. (BWA) has a trailing price-to-earnings (P/E) ratio of 10.20. Beta for the stock is 1.44. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 0.56, the price-to-book (PB) ratio of 1.27, and the price-to-cash flow ratio of 16.06.
Company paid $0.11 per share in dividends, a decrease of -35.29% from $0.17 last year. A $0.06 dividend decrease was reported on Monday June 26 2023.
Financial Health
For the three months ended June 29, BorgWarner Inc.’s quick ratio was 1.20, while its current ratio was 1.60, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 0.56, and the total debt to equity ratio is 0.56. As far as profitability goes, gross margin for the trailing twelve months is 19.30% percent. BorgWarner Inc.’s EBITDA margin for the year ended June 29 was 13.86%, whereas its operating margin stood at 8.70% for the same period. Based on annual data, it had gross profit of $3.1 billion and revenue of $15.8 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. BWA’s return on assets (ROA) during the last 12 months has been 5.60%. There was a 9.40% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 13.10%.
Earnings Surprise
According to BorgWarner Inc.’s quarterly financial report for the quarter that ended June 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $4.52 billion, while revenues rose by 16.84% to $4.18 billion. It was predicted that BorgWarner Inc.’s quarterly earnings would be $1.35, but it ended up being $1.08, beating the consensus by 25.00%. EBITDA was $569.0 million for the quarter. At the end of BorgWarner Inc.’s most recent quarter ended June 29, its liabilities totaled 9.54 billion, while its total debt was $4.45 billion. Equity owned by shareholders amounts to $235.06 million.
Technical Picture
Here’s a quick look at BorgWarner Inc.’s (BWA) price momentum from a technical perspective. As of 19 September, the RSI 9-day stood at 56.81%, suggesting the stock is Neutral, with a 24.21% historical volatility rate.
The stochastic %K and %D were 69.03% and 59.68% respectively, while the average true range (ATR) was 0.97. Based on the 14-day stochastic reading of 76.55%, the RSI (14) reading is 51.29%. On the 9-day MACD Oscillator, the stock is at 0.48, and the 14-day reading is at 0.42.
Analyst Ratings
In its analyst report released on September 13, 2023, UBS began covering BorgWarner Inc. (NYSE: BWA). The stock was rated as a Buy by the brokerage firm. Analysts have assigned BorgWarner Inc. (BWA) an Overweight rating. BWA is a stock that is recommended for selling by 0 brokerage firms, while 7 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 4 rates it overweight and 9 others recommend it as a buy.
What is BWA’s price target for the next 12 months?
The current consensus forecast for the stock is between $44.00 and $67.00, with a median target price of $50.50. In analyzing these forecasts, the average price target given by analysts for BorgWarner Inc. (BWA) is $51.89.
