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

BorgWarner Inc. (NYSE:BWA) has earned an average rating of “Moderate Buy” from the fifteen ratings firms that are presently covering the stock, MarketBeat reports. Six research analysts have rated the stock with a hold recommendation and nine have assigned a buy recommendation to the company. The average 1-year price objective among analysts that have issued a report on the stock in the last year is $75.9286.

BWA has been the topic of several analyst reports. JPMorgan Chase & Co. raised their target price on BorgWarner from $75.00 to $85.00 and gave the company an “overweight” rating in a research report on Monday. Sanford C. Bernstein upgraded BorgWarner to a “buy” rating in a research report on Wednesday, June 10th. Morgan Stanley increased their price target on BorgWarner from $67.00 to $71.00 and gave the stock an “equal weight” rating in a research note on Thursday. The Goldman Sachs Group reissued a “buy” rating and set a $84.00 price target on shares of BorgWarner in a report on Thursday, June 11th. Finally, Wolfe Research restated an “outperform” rating and set a $95.00 price objective on shares of BorgWarner in a research note on Wednesday, June 3rd.

Insider Buying and Selling

In related news, VP Stefan Demmerle sold 5,000 shares of the business’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 transaction of $325,000.00. Following the sale, the vice president owned 203,746 shares of the company’s stock, valued at $13,243,490. The trade was a 2.40% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Joseph F. Fadool sold 29,000 shares of the company’s 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 sale, the chief executive officer owned 405,964 shares of the company’s stock, valued at $27,325,436.84. This trade represents a 6.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.76% of the company’s stock.

Hedge Funds Weigh In On BorgWarner

Several hedge funds have recently modified their holdings of BWA. Clearstead Trust LLC bought a new stake in shares of BorgWarner in the 2nd quarter worth $28,000. Prosperity Bancshares Inc bought a new position in BorgWarner during the fourth quarter valued at about $37,000. Sound Income Strategies LLC grew its holdings in BorgWarner by 9,888.9% during the fourth quarter. Sound Income Strategies LLC now owns 899 shares of the auto parts company’s stock worth $42,000 after acquiring an additional 890 shares during the period. Torren Management LLC acquired a new position in BorgWarner during the fourth quarter worth about $48,000. Finally, Cedar Mountain Advisors LLC bought a new stake in BorgWarner in the first quarter worth about $55,000. 95.67% of the stock is currently owned by institutional investors and hedge funds.

BorgWarner Trading Up 1.7%

BorgWarner stock opened at $69.59 on Tuesday. BorgWarner has a 52-week low of $38.31 and a 52-week high of $78.82. The company has a quick ratio of 1.76, a current ratio of 2.13 and a debt-to-equity ratio of 0.67. The firm has a market capitalization of $14.17 billion, a price-to-earnings ratio of 34.80, a PEG ratio of 1.46 and a beta of 1.10. The firm has a 50-day moving average price of $67.53 and a two-hundred day moving average price of $60.40.

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

BorgWarner announced that its board has approved a share repurchase program on Wednesday, August 5th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the auto parts company to repurchase up to 7.7% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s management believes its shares are undervalued.

BorgWarner Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be given a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Tuesday, September 1st. BorgWarner’s payout ratio is 34.00%.

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.