BorgWarner (NYSE:BWA) Trading 4.9% Higher – Time to Buy?

Shares of BorgWarner Inc. (NYSE:BWA) traded up 4.9% on Wednesday . The stock traded as high as $77.72 and last traded at $77.72. 604,852 shares traded hands during mid-day trading, a decline of 79% from the average session volume of 2,915,854 shares. The stock had previously closed at $74.08.

Analyst Ratings Changes

Several analysts have weighed in on the company. Wolfe Research reiterated an “outperform” rating and issued a $95.00 price objective on shares of BorgWarner in a research report on Wednesday. The Goldman Sachs Group upped their target price on BorgWarner from $54.00 to $78.00 and gave the company a “buy” rating in a report on Thursday, February 12th. Deutsche Bank Aktiengesellschaft set a $81.00 target price on BorgWarner in a report on Tuesday, April 21st. Weiss Ratings restated a “hold (c)” rating on shares of BorgWarner in a report on Monday, April 20th. Finally, Robert W. Baird set a $76.00 target price on BorgWarner in a report on Thursday, February 12th. Seven equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $71.14.

BorgWarner Stock Performance

The stock has a market capitalization of $15.80 billion, a PE ratio of 45.58, a PEG ratio of 1.47 and a beta of 1.07. The business has a 50 day moving average price of $59.86 and a 200 day moving average price of $53.11. The company has a debt-to-equity ratio of 0.69, a current ratio of 2.13 and a quick ratio of 1.75.

BorgWarner (NYSE:BWA) last released its quarterly earnings data on Wednesday, May 6th. The auto parts company reported $1.24 EPS for the quarter, beating the consensus estimate of $1.16 by $0.08. BorgWarner had a return on equity of 18.36% and a net margin of 2.53%.The company had revenue of $3.53 billion for the quarter, compared to analysts’ expectations of $3.50 billion. During the same period last year, the firm posted $1.11 earnings per share. BorgWarner’s revenue was up .5% compared to the same quarter last year. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. As a group, equities research analysts expect that BorgWarner Inc. will post 5.18 earnings per share for the current year.

BorgWarner Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Monday, June 1st will be issued a $0.17 dividend. The ex-dividend date of this dividend is Monday, June 1st. This represents a $0.68 dividend on an annualized basis and a yield of 0.9%. BorgWarner’s dividend payout ratio is currently 40.24%.

Insider Buying and Selling

In other BorgWarner news, CEO Joseph F. Fadool sold 29,000 shares of the stock in a transaction dated Wednesday, May 13th. The stock was sold at an average price of $67.31, for a total value of $1,951,990.00. Following the transaction, the chief executive officer owned 405,964 shares of the company’s stock, valued at approximately $27,325,436.84. This represents a 6.67% 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 the SEC website. Also, EVP Paul Arthur Farrell sold 12,012 shares of the stock in a transaction dated Thursday, March 12th. The shares were sold at an average price of $52.31, for a total value of $628,347.72. Following the completion of the transaction, the executive vice president directly owned 38,238 shares in the company, valued at approximately $2,000,229.78. This represents a 23.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 96,033 shares of company stock valued at $5,792,558 in the last 90 days. Insiders own 0.76% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. Savant Capital LLC raised its stake in shares of BorgWarner by 130.4% in the third quarter. Savant Capital LLC now owns 72,427 shares of the auto parts company’s stock worth $3,184,000 after buying an additional 40,993 shares during the period. Sivia Capital Partners LLC bought a new position in shares of BorgWarner in the second quarter worth about $339,000. Caprock Group LLC bought a new position in shares of BorgWarner in the third quarter worth about $1,244,000. Ethos Capital Management Inc. bought a new position in shares of BorgWarner in the fourth quarter worth about $1,433,000. Finally, Natixis Advisors LLC raised its stake in shares of BorgWarner by 9.0% in the third quarter. Natixis Advisors LLC now owns 824,045 shares of the auto parts company’s stock worth $36,225,000 after buying an additional 67,990 shares during the period. Institutional investors own 95.67% of the company’s stock.

About BorgWarner

BorgWarner Inc is a global automotive supplier specializing in propulsion and drivetrain solutions for combustion, hybrid and electric vehicles. The company’s product portfolio includes turbochargers, thermal management systems, transmission components, e-Propulsion modules and advanced fuel-efficiency technologies. BorgWarner serves original equipment manufacturers (OEMs) across passenger cars, light trucks and commercial vehicles, supporting both legacy internal-combustion engines and emerging electrification trends.

Founded in 1928 through the merger of several driveline companies, BorgWarner has grown through strategic acquisitions and continuous investment in research and development.