BorgWarner Inc. (NYSE:BWA) Receives Average Rating of “Moderate Buy” from Analysts

BorgWarner Inc. (NYSE:BWA) has been given an average recommendation of “Moderate Buy” by the eighteen research firms that are presently covering the stock, Marketbeat.com reports. Six investment analysts have rated the stock with a hold recommendation, ten have issued a buy recommendation and two have issued a strong buy recommendation on the company. The average twelve-month target price among brokerages that have covered the stock in the last year is $44.6429.

Several research analysts have recently issued reports on the company. Weiss Ratings reaffirmed a “hold (c)” rating on shares of BorgWarner in a research report on Wednesday, October 8th. Barclays raised their price objective on shares of BorgWarner from $45.00 to $55.00 and gave the stock an “overweight” rating in a report on Friday. Evercore ISI raised their price objective on shares of BorgWarner from $42.00 to $50.00 and gave the stock an “outperform” rating in a report on Monday. Baird R W raised shares of BorgWarner from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, September 3rd. Finally, The Goldman Sachs Group increased their target price on shares of BorgWarner from $45.00 to $52.00 and gave the company a “buy” rating in a research report on Monday, September 29th.

Insider Buying and Selling

In other news, Director Alexis P. Michas sold 8,772 shares of the stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $42.31, for a total value of $371,143.32. Following the completion of the sale, the director directly owned 78,903 shares of the company’s stock, valued at approximately $3,338,385.93. This represents a 10.01% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Isabelle Mckenzie sold 2,500 shares of the company’s stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $40.01, for a total transaction of $100,025.00. Following the completion of the sale, the vice president owned 55,945 shares of the company’s stock, valued at approximately $2,238,359.45. This trade represents a 4.28% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 31,272 shares of company stock worth $1,263,318 in the last quarter. 0.63% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. Dimensional Fund Advisors LP grew its holdings in shares of BorgWarner by 2.5% during the first quarter. Dimensional Fund Advisors LP now owns 11,568,627 shares of the auto parts company’s stock worth $331,429,000 after buying an additional 284,587 shares during the last quarter. State Street Corp grew its holdings in shares of BorgWarner by 5.3% during the second quarter. State Street Corp now owns 7,633,760 shares of the auto parts company’s stock worth $255,578,000 after buying an additional 380,942 shares during the last quarter. LSV Asset Management lifted its position in BorgWarner by 36.7% during the 1st quarter. LSV Asset Management now owns 5,889,080 shares of the auto parts company’s stock worth $168,722,000 after acquiring an additional 1,580,935 shares during the period. American Century Companies Inc. lifted its position in BorgWarner by 1.6% during the 2nd quarter. American Century Companies Inc. now owns 3,774,828 shares of the auto parts company’s stock worth $126,381,000 after acquiring an additional 58,252 shares during the period. Finally, AQR Capital Management LLC raised its stake in shares of BorgWarner by 307.1% during the second quarter. AQR Capital Management LLC now owns 3,422,874 shares of the auto parts company’s stock worth $114,153,000 after purchasing an additional 2,582,105 shares during the last quarter. 95.67% of the stock is currently owned by institutional investors and hedge funds.

BorgWarner Stock Up 1.3%

Shares of BorgWarner stock opened at $41.75 on Wednesday. BorgWarner has a 52-week low of $24.40 and a 52-week high of $44.97. The company has a 50 day moving average of $42.70 and a 200 day moving average of $35.68. The company has a market capitalization of $9.03 billion, a P/E ratio of 44.41, a P/E/G ratio of 1.35 and a beta of 1.09. The company has a quick ratio of 1.66, a current ratio of 2.02 and a debt-to-equity ratio of 0.64.

BorgWarner (NYSE:BWA) last announced its quarterly earnings data on Thursday, July 31st. The auto parts company reported $1.21 earnings per share for the quarter, beating analysts’ consensus estimates of $1.06 by $0.15. The business had revenue of $3.64 billion for the quarter, compared to analyst estimates of $3.56 billion. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. The company’s revenue was up 1.0% on a year-over-year basis. During the same period last year, the business earned $1.19 EPS. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. As a group, research analysts forecast that BorgWarner will post 4.28 EPS for the current fiscal year.

BorgWarner Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd were issued a $0.17 dividend. This represents a $0.68 annualized dividend and a dividend yield of 1.6%. The ex-dividend date of this dividend was Tuesday, September 2nd. This is an increase from BorgWarner’s previous quarterly dividend of $0.11. BorgWarner’s dividend payout ratio (DPR) is presently 72.34%.

BorgWarner announced that its board has authorized a stock buyback plan on Thursday, July 31st that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the auto parts company to repurchase up to 13.2% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board believes its shares are undervalued.

BorgWarner Company Profile

BorgWarner Inc, together with its subsidiaries, provides solutions for combustion, hybrid, and electric vehicles worldwide. It offers turbochargers, eBoosters, eTurbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, battery modules and systems, battery heaters, and battery charging.