BorgWarner Inc. Is a Sell; Strong Momentum from Option Traders


 BorgWarner Inc. Is a Sell; Strong Momentum from Option Traders

In today’s session BorgWarner Inc. (BWA) recorded an unusually high (1,402) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the November, 2016 put, expecting serious BWA decrease. With 1,402 contracts traded and 854 open interest for the Nov, 16 contract, it seems this is a quite bearish bet. The option with symbol: BWA161118P00035000 closed last at: $1.15 or 30.3% down. About 626,854 shares traded hands. BorgWarner Inc. (NYSE:BWA) has risen 1.46% since March 4, 2016 and is uptrending. It has underperformed by 6.58% the S&P500.

Analysts await BorgWarner Inc. (NYSE:BWA) to report earnings on November, 3. They expect $0.77 EPS, up 5.48% or $0.04 from last year’s $0.73 per share. BWA’s profit will be $161.35 million for 11.44 P/E if the $0.77 EPS becomes a reality. After $0.84 actual EPS reported by BorgWarner Inc. for the previous quarter, Wall Street now forecasts -8.33% negative EPS growth.

BorgWarner Inc. (NYSE:BWA) Ratings Coverage

Out of 12 analysts covering Borgwarner Inc. (NYSE:BWA), 2 rate it a “Buy”, 2 “Sell”, while 8 “Hold”. This means 17% are positive. $62 is the highest target while $33 is the lowest. The $45.20 average target is 28.34% above today’s ($35.22) stock price. Borgwarner Inc. has been the topic of 28 analyst reports since August 3, 2015 according to StockzIntelligence Inc. The firm has “Outperform” rating given on Friday, September 11 by RBC Capital Markets. The company was maintained on Friday, July 31 by Deutsche Bank. Goldman Sachs upgraded the stock to “Buy” rating in Wednesday, November 18 report. The stock of BorgWarner Inc. (NYSE:BWA) earned “Neutral” rating by Bank of America on Tuesday, June 21. Barclays Capital maintained BorgWarner Inc. (NYSE:BWA) on Thursday, September 3 with “Equal-Weight” rating. On Tuesday, August 18 the stock rating was upgraded by UBS to “Buy”. The firm has “Neutral” rating by Citigroup given on Tuesday, March 29. The firm earned “Neutral” rating on Thursday, October 6 by Goldman Sachs. The firm has “Underweight” rating by Morgan Stanley given on Monday, October 19. The stock of BorgWarner Inc. (NYSE:BWA) has “Sector Perform” rating given on Friday, February 12 by RBC Capital Markets.

According to Zacks Investment Research, “BorgWarner Inc. is a product leader in highly engineered components and systems for vehicle powertrain applications worldwide. The company operates manufacturing and technical facilities in several countries. Customers include Ford, DaimlerChrysler, General Motors, Toyota, Caterpillar, Navistar, PSA and VW Group. (Company Press Release)”

Insitutional Activity: The institutional sentiment decreased to 0.8 in Q2 2016. Its down 0.15, from 0.95 in 2016Q1. The ratio is negative, as 57 funds sold all BorgWarner Inc. shares owned while 146 reduced positions. 40 funds bought stakes while 122 increased positions. They now own 182.28 million shares or 6.04% less from 193.99 million shares in 2016Q1.
Evercore Wealth Mgmt Lc reported 318 shares or 0% of all its holdings. Cwm Ltd Liability accumulated 40 shares or 0% of the stock. Sumitomo Life Ins Company last reported 30,796 shares in the company. First Manhattan holds 0% of its portfolio in BorgWarner Inc. (NYSE:BWA) for 254 shares. Legal General Public Limited Liability owns 974,135 shares or 0.03% of their US portfolio. Wesbanco State Bank Inc last reported 0.05% of its portfolio in the stock. Westpac Banking last reported 96,753 shares in the company. Bnp Paribas Investment Partners Sa holds 92,558 shares or 0.02% of its portfolio. Ladenburg Thalmann Fincl Services accumulated 0% or 7,494 shares. Waddell Reed Fincl reported 2.58M shares or 0.16% of all its holdings. Dean Associate Ltd Co holds 0.77% or 133,610 shares in its portfolio. Impax Asset Management Limited has 1.08M shares for 1.58% of their US portfolio. Janney Montgomery Scott Lc, a Pennsylvania-based fund reported 12,411 shares. Aston Asset Mngmt Ltd Liability Company accumulated 0.64% or 35,809 shares. Moreover, Etrade Cap Mngmt Limited Com has 0.01% invested in BorgWarner Inc. (NYSE:BWA) for 7,445 shares.

Insider Transactions: Since May 4, 2016, the stock had 0 insider buys, and 6 insider sales for $1.88 million net activity. Ericson Brady D had sold 11,282 shares worth $381,350. On Tuesday, August 2 the insider McGill Thomas J. sold $159,152. Another trade for 2,500 shares valued at $83,829 was sold by Cuneo Dennis C. Hundzinski Ronald T had sold 3,721 shares worth $130,475 on Wednesday, May 4.

BorgWarner Inc. is a supplier of engineered automotive systems and components for powertrain applications. The company has a market cap of $7.38 billion. The Firm operates through two divisions: Engine and Drivetrain. It has a 12.72 P/E ratio. The Engine segment’s products include turbochargers, timing devices and chains, emissions systems and thermal systems.

BWA Company Profile

BorgWarner Inc., incorporated on May 4, 1987, is a supplier of engineered automotive systems and components primarily for powertrain applications. The Firm operates through two divisions: Engine and Drivetrain. The Engine segment’s products include turbochargers, timing devices and chains, emissions systems and thermal systems. The Drivetrain segment’s products include transmission components and systems, all-wheel drive (AWD) torque transfer systems and rotating electrical devices. The Firm makes and sells the products across the world, to original equipment manufacturers (OEMs) of light vehicles (passenger cars, sport-utility vehicles (SUVs), vans and light trucks). The Firm sells the products to other OEMs of commercial vehicles (medium-duty trucks, heavy-duty trucks and buses) and off-highway vehicles (agricultural and construction machinery and marine applications). The Firm makes and sells its products to certain Tier One vehicle systems suppliers and into the aftermarket for light, commercial and off-highway vehicles. The Firm operates manufacturing facilities serving clients in the Americas, Europe, Africa and Asia.

Another recent and important BorgWarner Inc. (NYSE:BWA) news was published by which published an article titled: “BorgWarner Agrees to Sell REMY Light Vehicle Aftermarket Business to Torque …” on October 03, 2016.

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