Rajesh Kalathur Buys 7,407 Shares of BorgWarner (NYSE:BWA) Stock

BorgWarner Inc. (NYSE:BWA) Director Rajesh Kalathur acquired 7,407 shares of BorgWarner stock in a transaction that occurred on Wednesday, August 19th. The shares were bought at an average cost of $67.59 per share, with a total value of $500,639.13. Following the transaction, the director owned 7,407 shares in the company, valued at $500,639.13. This represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is available through this link.

BorgWarner Trading Up 4.5%

BorgWarner stock opened at $67.74 on Friday. The company has a current ratio of 2.13, a quick ratio of 1.76 and a debt-to-equity ratio of 0.67. The business’s fifty day simple moving average is $66.34 and its two-hundred day simple moving average is $61.56. BorgWarner Inc. has a 12 month low of $40.50 and a 12 month high of $78.82. The company has a market capitalization of $13.80 billion, a price-to-earnings ratio of 33.87, a price-to-earnings-growth ratio of 1.17 and a beta of 1.10.

BorgWarner (NYSE:BWA) last released its earnings results on Wednesday, August 5th. The auto parts company reported $1.42 EPS for the quarter, topping analysts’ consensus estimates of $1.28 by $0.14. The firm had revenue of $3.65 billion for the quarter, compared to analysts’ expectations of $3.58 billion. BorgWarner had a return on equity of 19.10% and a net margin of 2.89%.The company’s quarterly revenue was up .3% on a year-over-year basis. During the same period in the prior year, the firm posted $1.21 earnings per share. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. As a group, equities analysts predict that BorgWarner Inc. will post 5.19 earnings per share for the current fiscal year.

BorgWarner Dividend Announcement

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

BorgWarner announced that its board has authorized a share repurchase plan on Wednesday, August 5th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the auto parts company to purchase up to 7.7% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s board believes its shares are undervalued.

Hedge Funds Weigh In On BorgWarner

Several hedge funds and other institutional investors have recently modified their holdings of BWA. Acadian Asset Management LLC increased its position in BorgWarner by 23.7% during the first quarter. Acadian Asset Management LLC now owns 8,979 shares of the auto parts company’s stock valued at $257,000 after acquiring an additional 1,723 shares during the last quarter. Sivia Capital Partners LLC purchased a new position in BorgWarner in the second quarter worth about $339,000. EverSource Wealth Advisors LLC boosted its position in BorgWarner by 400.5% in the second quarter. EverSource Wealth Advisors LLC now owns 5,531 shares of the auto parts company’s stock worth $185,000 after purchasing an additional 4,426 shares during the last quarter. Marshall Wace LLP bought a new stake in shares of BorgWarner during the 2nd quarter valued at about $247,000. Finally, Cerity Partners LLC increased its position in shares of BorgWarner by 30.2% during the 2nd quarter. Cerity Partners LLC now owns 143,841 shares of the auto parts company’s stock valued at $4,816,000 after purchasing an additional 33,362 shares during the last quarter. 95.67% of the stock is owned by institutional investors.

Analyst Ratings Changes

BWA has been the topic of several analyst reports. Wall Street Zen upgraded shares of BorgWarner from a “hold” rating to a “buy” rating in a research note on Saturday, June 27th. JPMorgan Chase & Co. raised their price target on shares of BorgWarner from $75.00 to $85.00 and gave the company an “overweight” rating in a research report on Monday, August 10th. Morgan Stanley boosted their price objective on shares of BorgWarner from $67.00 to $71.00 and gave the stock an “equal weight” rating in a report on Thursday, August 6th. UBS Group raised BorgWarner from a “neutral” rating to a “buy” rating and upped their price objective for the company from $61.00 to $95.00 in a research report on Wednesday, June 10th. Finally, Deutsche Bank Aktiengesellschaft set a $80.00 target price on BorgWarner in a research note on Thursday, August 6th. Nine equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $75.93.

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.