BorgWarner (NYSE:BWA) Upgraded at Royal Bank Of Canada

BorgWarner (NYSE:BWA) was upgraded by investment analysts at Royal Bank Of Canada to a “moderate buy” rating in a research report issued to clients and investors on Monday, Zacks reports.

Several other brokerages also recently commented on BWA. Wolfe Research reaffirmed an “outperform” rating and set a $95.00 price objective on shares of BorgWarner in a research report on Wednesday, June 3rd. Morgan Stanley boosted their target price on shares of BorgWarner from $67.00 to $71.00 and gave the company an “equal weight” rating in a research report on Thursday, August 6th. UBS Group raised shares of BorgWarner from a “neutral” rating to a “buy” rating and increased their target price for the stock from $61.00 to $95.00 in a research note on Wednesday, June 10th. Wells Fargo & Company raised their price target on shares of BorgWarner from $68.00 to $83.00 and gave the stock an “overweight” rating in a report on Tuesday, June 2nd. Finally, Deutsche Bank Aktiengesellschaft set a $80.00 price target on shares of BorgWarner in a research note on Thursday, August 6th. Ten investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $76.67.

BorgWarner Stock Down 0.7%

Shares of NYSE:BWA opened at $63.68 on Monday. BorgWarner has a 1 year low of $40.50 and a 1 year high of $78.82. The company has a debt-to-equity ratio of 0.67, a current ratio of 2.13 and a quick ratio of 1.76. The business’s 50-day moving average is $65.29 and its 200-day moving average is $62.19. The company has a market capitalization of $12.97 billion, a price-to-earnings ratio of 31.84, a P/E/G ratio of 1.15 and a beta of 1.12.

BorgWarner (NYSE:BWA) last released its earnings results on Wednesday, August 5th. The auto parts company reported $1.42 EPS for the quarter, topping the consensus estimate of $1.28 by $0.14. The business had revenue of $3.65 billion during 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 firm’s revenue was up .3% on a year-over-year basis. During the same quarter last year, the firm posted $1.21 earnings per share. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. Equities research analysts predict that BorgWarner will post 5.2 earnings per share for the current year.

BorgWarner announced that its board has approved a stock buyback 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 buy up to 7.7% of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.

Insider Transactions at BorgWarner

In related news, Director Michael S. Hanley sold 5,000 shares of the stock in a transaction on Friday, August 28th. The stock was sold at an average price of $65.51, for a total value of $327,550.00. Following the transaction, the director directly owned 34,313 shares in the company, valued at $2,247,844.63. This trade represents a 12.72% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Rajesh Kalathur purchased 7,407 shares of BorgWarner stock in a transaction that occurred on Wednesday, August 19th. The stock was acquired 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 trade represents a ∞ increase in their position. The disclosure for this purchase is available in the SEC filing. 0.76% of the stock is owned by insiders.

Institutional Investors Weigh In On BorgWarner

Several hedge funds and other institutional investors have recently made changes to their positions in BWA. Clearstead Trust LLC acquired a new stake in shares of BorgWarner in the 2nd quarter worth about $28,000. Prosperity Bancshares Inc acquired a new position in BorgWarner during the 4th quarter valued at about $37,000. Ceredex Value Advisors LLC acquired a new position in BorgWarner during the 2nd quarter valued at about $40,000. Fiduciary Financial Advisors bought a new stake in BorgWarner during the 2nd quarter worth approximately $49,000. Finally, Cedar Mountain Advisors LLC bought a new stake in BorgWarner during the 1st quarter worth approximately $55,000. 95.67% of the stock is owned by institutional investors.

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.