Why BorgWarner Inc. [BWA] Stock Still Has Countless Sunny Days Ahead

BorgWarner Inc. [BWA] shares are down more than -6.54% this year and recently decreased -0.02% or -$0.74 to settle at $39.13. Analysts expect BWA to grow earnings at a 6.63% annual rate over the next 5 years. BWA has a short ratio of 3.85. This implies that the market is currently less bearish on the outlook for BWA.

On 2, December 2020, BorgWarner Inc. Awarded on Newsweek’s America’s Most Responsible Companies 2021 List. According to news published on Yahoo Finance, BorgWarner Inc. been awarded on Newsweek’s list of America’s Most Responsible Companies 2021. This prestigious award is presented by Newsweek and Statista Inc., the world-leading statistics portal and industry ranking provider. The awards list was announced on December 2nd, 2020 and can currently be viewed on Newsweek’s website.

Analyst Birdseye View:

The most recent analyst activity for BorgWarner Inc. [NYSE:BWA] stock was on November 09, 2020, when it was Downgrade with an Underweight rating from Morgan Stanley, which also raised its 12-month price target on the stock to $27. On November 04, 2020, Goldman Resumed a Neutral rating and boosted its price target on this stock to $36. On October 22, 2020, Barclays Downgrade an Equal weight rating and decreased its price target from $45 to $42. On October 20, 2020, Robert W. Baird Resumed an Outperform rating and increased its price target to $47. On May 28, 2020, Wolfe Research Upgrade an Outperform rating. On April 13, 2020, KeyBanc Capital Markets Upgrade an Overweight rating and boosted its target amount on this stock to $35. Morgan Stanley elevated its amount target by recapitulating a higher weight for this stock.

In the past 52 weeks of trading, this stock has oscillated between a low of $17.00 and a peak of $45.35. Right now, according to Wall Street analyst the average 12-month amount target is $44.82. At the most recent market close, shares of BorgWarner Inc. [NYSE:BWA] were valued at $39.13. According to the average price forecast, investors can expect a potential return of -2.52%.

FUNDAMENTAL ANALYSIS

BorgWarner Inc. [NYSE:BWA] most recently reported quarterly sales of 2.53 billion, which represented growth of 1.70%. This publicly-traded organization’s revenue is $350,793 per employee, while its income is $25,724 per employee. This company’s Gross Margin is currently 19.10%, its Operating Margin is 9.90%, its Pretax Margin is +12.43, and its Net Margin is +7.33. Continuing to look at profitability, this corporation’s Return on Assets, Equity, Whole Principal & invested Principal is sitting at 7.54, 16.70, 18.46 and 11.83 respectively.

If looking now at the Principal structure of this organization, it shows its whole liability to the whole Principal at 30.29 and the whole liability to whole assets at 21.08. It shows enduring liability to the whole principal at 25.79 and enduring liability to assets at 0.18 while looking for an extended time period.

Readers are usually of view to make a close observation to the indicators that support and make resistance before moving to any particular stock. As of now, the company’s stock is sitting at 39.19 points at 1st support level, the second support level is making up to 38.50. But as of 1st resistance point, this stock is sitting at 40.24 and at 40.60 for 2nd resistance point.

BorgWarner Inc. [BWA] reported its earnings at $0.88 per share in the fiscal quarter closing of 9/29/2020. The Analysts for Wall Street were expecting to report its earnings at $0.75/share signifying the difference of 0.13 and 17.30% surprise value. Comparing the previous quarter ending of 6/29/2020, the stated earnings were -$0.14 calling estimates for -$0.45/share with the difference of 0.31 depicting the surprise of 68.90%.

Important Ratio’s To Watch

Meanwhile, turning our focus to liquidity, the Current Ratio for BorgWarner Inc. [NYSE:BWA] is 2.30. Likewise, the Quick ratio is also the same, showing Cash ratio at 0.36. Now if looking for a valuation of this stock’s amount to sales ratio it’s 0.88, it’s amount to book ratio is 1.90 and showing 22.80 of P/E (TTM) ratio.

Insider Stories

The most recent insider trade was by Weng Volker, Vice President, and it was the sale of 3500.0 shares on Nov 13. Aaron Craig, the VP & Treasurer, completed a sale of 4572.0 shares on Sep 14. On Aug 14, CALAWAY TONIT M, EVP, Chief Legal Officer & Sec, completed a sale of 3000.0 shares.