BorgWarner (NYSE:BWA) Price Target Raised to $85.00

BorgWarner (NYSE:BWA) had its price objective upped by equities research analysts at JPMorgan Chase & Co. from $75.00 to $85.00 in a research note issued to investors on Monday,Benzinga reports. The brokerage currently has an “overweight” rating on the auto parts company’s stock. JPMorgan Chase & Co.‘s price target suggests a potential upside of 21.66% from the stock’s current price.

A number of other research analysts have also weighed in on the company. TD Cowen raised their price objective on BorgWarner from $67.00 to $68.00 and gave the company a “hold” rating in a research report on Thursday. Wall Street Zen upgraded BorgWarner from a “hold” rating to a “buy” rating in a research report on Saturday, June 27th. Deutsche Bank Aktiengesellschaft set a $80.00 price target on BorgWarner in a research note on Thursday. Wells Fargo & Company lifted their price objective on BorgWarner from $68.00 to $83.00 and gave the stock an “overweight” rating in a research note on Tuesday, June 2nd. Finally, Wolfe Research reaffirmed an “outperform” rating and set a $95.00 price objective on shares of BorgWarner in a report on Wednesday, June 3rd. Nine investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $75.93.

BorgWarner Price Performance

Shares of BorgWarner stock traded up $1.45 on Monday, hitting $69.87. 1,497,397 shares of the company traded hands, compared to its average volume of 2,862,291. BorgWarner has a 52 week low of $38.31 and a 52 week high of $78.82. The business has a 50-day simple moving average of $67.56 and a 200 day simple moving average of $60.24. The company has a debt-to-equity ratio of 0.67, a quick ratio of 1.76 and a current ratio of 2.13. The stock has a market capitalization of $14.23 billion, a P/E ratio of 34.94, a price-to-earnings-growth ratio of 1.46 and a beta of 1.10.

BorgWarner (NYSE:BWA) last posted its earnings results on Wednesday, August 5th. The auto parts company reported $1.42 earnings per share for the quarter, beating the consensus estimate of $1.28 by $0.14. The company had revenue of $3.65 billion during the quarter, compared to analysts’ expectations of $3.58 billion. BorgWarner had a net margin of 2.89% and a return on equity of 19.10%. BorgWarner’s quarterly revenue was up .3% on a year-over-year basis. During the same period last year, the company posted $1.21 earnings per share. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. Research analysts expect that BorgWarner will post 5.17 earnings per share for the current fiscal year.

BorgWarner declared that its Board of Directors has approved a share buyback plan on Wednesday, August 5th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the auto parts company to buy up to 7.7% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s management believes its shares are undervalued.

Insider Buying and Selling

In other news, VP Stefan Demmerle sold 5,000 shares of the firm’s stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $65.00, for a total value of $325,000.00. Following the completion of the sale, the vice president directly owned 203,746 shares of the company’s stock, valued at $13,243,490. This trade represents a 2.40% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Joseph F. Fadool sold 29,000 shares of BorgWarner stock in a transaction that occurred on 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 completion of the transaction, the chief executive officer owned 405,964 shares of the company’s stock, valued at approximately $27,325,436.84. This trade represents a 6.67% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 37,500 shares of company stock worth $2,498,715. Corporate insiders own 0.76% of the company’s stock.

Institutional Trading of BorgWarner

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. BlackRock Inc. purchased a new stake in shares of BorgWarner in the second quarter valued at $1,678,187,000. Dimensional Fund Advisors LP boosted its stake in shares of BorgWarner by 1.5% during the 4th quarter. Dimensional Fund Advisors LP now owns 11,961,482 shares of the auto parts company’s stock worth $538,996,000 after purchasing an additional 178,853 shares during the period. AQR Capital Management LLC boosted its stake in shares of BorgWarner by 22.7% during the 4th quarter. AQR Capital Management LLC now owns 9,222,352 shares of the auto parts company’s stock worth $415,559,000 after purchasing an additional 1,703,576 shares during the period. State Street Corp grew its holdings in BorgWarner by 5.3% during the 2nd quarter. State Street Corp now owns 7,633,760 shares of the auto parts company’s stock valued at $255,578,000 after purchasing an additional 380,942 shares during the last quarter. Finally, LSV Asset Management raised its position in BorgWarner by 6.7% in the 4th quarter. LSV Asset Management now owns 6,446,541 shares of the auto parts company’s stock worth $290,481,000 after purchasing an additional 402,887 shares during the period. Hedge funds and other institutional investors own 95.67% of the company’s stock.

BorgWarner Company Profile

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.