BorgWarner Inc. (NYSE: BWA) stock fell -0.17% on Thursday to $40.34 against a previous-day closing price of $40.41. With 3.08 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.32 million shares. During the session, the Auto Parts company that operates in wider Consumer Cyclical sector, reached to the highest price of $40.99 whereas the lowest price it dropped to was $39.76. The 52-week range on BWA shows that it touched its highest point at $47.05 and its lowest point at $27.39 during that stretch. It currently has a 1-year price target of $51.51. With its current market cap of 9.42 billion, BWA has annualized dividend of $0.44 while the current yield stands at 1.09%. Beta for the stock currently stands at 1.44.
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 1.48%, but this was down by -1.03% over a month. Three-month performance dropped to -4.06% while six-month performance fell -0.11%. The stock gained 20.88% in the past year, while it has gained 13.94% so far this year. A look at the trailing 12-month EPS for BWA yields 4.04 with Next year EPS estimates of 4.38. For the next quarter, that number is 0.91. This implies an EPS growth rate of 77.80% for this year and 13.99% for next year. EPS is expected to grow by 11.00% 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, 235.06 million BWA shares are outstanding with a float of 233.70 million shares on hand for trading. On Aug 30, 2023, short shares totaled 8.37 million, which was 3.56% higher than short shares on Jul 30, 2023.
Through their ownership of 98.53% of BWA’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 59.24% of BWA, in contrast to 38.63% held by mutual funds. Shares owned by individuals account for 2.84%. As the largest shareholder in BWA with 11.04% of the stake, The Vanguard Group, Inc. holds 25,873,713 shares worth 25,873,713. A second-largest stockholder of BWA, BlackRock Fund Advisors, holds 12,320,373 shares, controlling over 5.26% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in BWA, holding 10,449,304 shares or 4.46% stake. With a 3.11% stake in BWA, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 7,281,346 shares are owned by the mutual fund manager. The Victory Sycamore Established Valu, which owns about 2.58% of BWA stock, is the second-largest Mutual Fund holder. It holds 6,056,500 shares valued at 281.63 million. Oakmark Fund holds 2.56% of the stake in BWA, owning 6,000,000 shares worth 279.0 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 Jun 29, 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 $67.00 and a low target of $44.00, the average target price over the next 12 months is $51.89. Based on these targets, BWA could surge 66.09% to reach the target high and rise by 9.07% to reach the target low. Reaching the average price target will result in a growth of 28.63% 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 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 28 while that of sell transactions has risen to 45 over the past year. The total number of shares bought during that period was 493,987 while 451,983 shares were sold.