BorgWarner Inc. (NYSE: BWA) stock jumped 1.43% on Thursday to $46.86 against a previous-day closing price of $46.20. With 2.63 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.12 million shares. During the session, the Auto Parts company that operates in wider Consumer Cyclical sector, reached to the highest price of $46.99 whereas the lowest price it dropped to was $46.04. The 52-week range on BWA shows that it touched its highest point at $51.14 and its lowest point at $31.14 during that stretch. It currently has a 1-year price target of $53.86. With its current market cap of 10.70 billion, BWA has annualized dividend of $0.68 while the current yield stands at 1.45%. Beta for the stock currently stands at 1.42.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of BWA was up-trending over the past week, with a rise of 4.18%, but this was down by -2.76% over a month. Three-month performance dropped to -5.87% while six-month performance rose 10.31%. The stock gained 25.13% in the past year, while it has gained 16.42% so far this year. A look at the trailing 12-month EPS for BWA yields 4.08 with Next year EPS estimates of 5.86. For the next quarter, that number is 1.23. This implies an EPS growth rate of 77.80% for this year and 17.37% for next year. EPS is expected to grow by 13.35% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 3.40%.
Float and Shares Shorts:
At present, 234.37 million BWA shares are outstanding with a float of 232.90 million shares on hand for trading. On Apr 27, 2023, short shares totaled 6.47 million, which was 2.76% higher than short shares on Mar 30, 2023. In addition to Mr. Frederic B. Lissalde as the firm’s Pres, CEO & Director, Mr. Kevin A. Nowlan serves as its Exec. VP & CFO.
Through their ownership of 97.59% of BWA’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 56.73% of BWA, in contrast to 39.16% held by mutual funds. Shares owned by individuals account for 2.85%. As the largest shareholder in BWA with 10.98% of the stake, The Vanguard Group, Inc. holds 25,709,154 shares worth 25,709,154. A second-largest stockholder of BWA, BlackRock Fund Advisors, holds 12,308,120 shares, controlling over 5.26% of the firm’s shares. Harris Associates LP is the third largest shareholder in BWA, holding 10,570,229 shares or 4.51% stake. With a 3.11% stake in BWA, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 7,279,933 shares are owned by the mutual fund manager. The Victory Sycamore Established Valu, which owns about 3.04% of BWA stock, is the second-largest Mutual Fund holder. It holds 7,115,000 shares valued at 342.44 million. Oakmark Fund holds 2.69% of the stake in BWA, owning 6,300,000 shares worth 303.22 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, BWA reported revenue of $3.76B and operating income of $313.00M. The EBITDA in the recently reported quarter was $514.00M and diluted EPS was $0.91.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BWA since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With BWA analysts setting a high price target of $60.00 and a low target of $42.00, the average target price over the next 12 months is $53.94. Based on these targets, BWA could surge 28.04% to reach the target high and fall by -10.37% to reach the target low. Reaching the average price target will result in a growth of 15.11% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded BWA stock several times over the past three months with 19 Buys and 30 Sells. In these transactions, 266,870 shares were bought while 154,071 shares were sold. The number of buy transactions has increased to 28 while that of sell transactions has risen to 44 over the past year. The total number of shares bought during that period was 493,987 while 458,706 shares were sold.