BorgWarner (NYSE:BWA) Price Target Raised to $53.00

BorgWarner (NYSE:BWA) had its price objective increased by JPMorgan Chase & Co. from $45.00 to $53.00 in a research report report published on Monday,Benzinga reports. The brokerage currently has an overweight rating on the auto parts company’s stock.

Several other equities research analysts have also commented on BWA. UBS Group increased their price objective on shares of BorgWarner from $43.00 to $46.00 and gave the company a “neutral” rating in a research note on Monday, October 6th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of BorgWarner in a research report on Wednesday, October 8th. Barclays lifted their price target on BorgWarner from $45.00 to $55.00 and gave the stock an “overweight” rating in a report on Friday, October 10th. Baird R W raised BorgWarner from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, September 3rd. Finally, Piper Sandler lifted their target price on BorgWarner from $37.00 to $44.00 and gave the stock an “overweight” rating in a research note on Friday, August 1st. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $45.21.

BorgWarner Price Performance

BWA stock opened at $43.48 on Monday. BorgWarner has a 1 year low of $24.40 and a 1 year high of $44.97. The stock has a market capitalization of $9.41 billion, a PE ratio of 46.25, a price-to-earnings-growth ratio of 1.62 and a beta of 1.09. The company’s 50-day moving average is $43.16 and its 200-day moving average is $36.25. The company has a debt-to-equity ratio of 0.64, a current ratio of 2.02 and a quick ratio of 1.66.

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

BorgWarner Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd were issued a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date of this dividend was Tuesday, September 2nd. This is a positive change from BorgWarner’s previous quarterly dividend of $0.11. BorgWarner’s payout ratio is presently 72.34%.

BorgWarner announced that its board has initiated a stock repurchase program on Thursday, July 31st that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the auto parts company to reacquire up to 13.2% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s board of directors believes its stock is undervalued.

Insiders Place Their Bets

In other BorgWarner news, VP Stefan Demmerle sold 15,000 shares of BorgWarner stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $39.31, for a total transaction of $589,650.00. Following the completion of the transaction, the vice president owned 234,040 shares of the company’s stock, valued at $9,200,112.40. The trade was a 6.02% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, VP Isabelle Mckenzie sold 2,500 shares of the stock in a transaction dated Tuesday, August 12th. The stock was 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 directly owned 55,945 shares in the company, valued at approximately $2,238,359.45. The trade was a 4.28% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 31,272 shares of company stock worth $1,263,318 in the last quarter. 0.45% of the stock is owned by company insiders.

Institutional Trading of BorgWarner

Several institutional investors and hedge funds have recently modified their holdings of the business. KLP Kapitalforvaltning AS grew its holdings in shares of BorgWarner by 1.9% during the third quarter. KLP Kapitalforvaltning AS now owns 76,600 shares of the auto parts company’s stock worth $3,367,000 after purchasing an additional 1,400 shares in the last quarter. Cerity Partners LLC lifted its position in BorgWarner by 81.5% during the third quarter. Cerity Partners LLC now owns 261,003 shares of the auto parts company’s stock valued at $11,474,000 after purchasing an additional 117,162 shares during the last quarter. Robeco Institutional Asset Management B.V. grew its stake in BorgWarner by 26.5% in the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 1,112,981 shares of the auto parts company’s stock worth $48,927,000 after buying an additional 233,128 shares in the last quarter. RHS Financial LLC purchased a new position in BorgWarner in the 3rd quarter worth approximately $271,000. Finally, Earned Wealth Advisors LLC purchased a new position in BorgWarner in the third quarter worth $221,000. Hedge funds and other institutional investors own 95.67% of the company’s stock.

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.