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

BorgWarner Inc. (NYSE:BWA) has earned an average recommendation of “Moderate Buy” from the fifteen brokerages that are covering the firm, Marketbeat.com reports. Six investment analysts have rated the stock with a hold rating and nine have issued a buy rating on the company. The average twelve-month price target among brokers that have issued ratings on the stock in the last year is $78.86.

A number of research firms have weighed in on BWA. Morgan Stanley upped their target price on BorgWarner from $67.00 to $71.00 and gave the stock an “equal weight” rating in a research report on Thursday, August 6th. JPMorgan Chase & Co. boosted their price target on shares of BorgWarner from $75.00 to $85.00 and gave the stock an “overweight” rating in a research report on Monday, August 10th. TD Cowen increased their target price on shares of BorgWarner from $67.00 to $68.00 and gave the company a “hold” rating in a research note on Thursday, August 6th. Barclays upped their target price on BorgWarner from $83.00 to $85.00 and gave the company an “overweight” rating in a report on Monday, August 10th. Finally, Royal Bank Of Canada began coverage on BorgWarner in a research note on Monday, August 31st. They issued an “outperform” rating and a $87.00 price target on the stock.

BorgWarner Stock Up 0.0%

BorgWarner stock opened at $60.53 on Wednesday. BorgWarner has a 52 week low of $40.50 and a 52 week high of $78.82. The stock has a market cap of $12.33 billion, a price-to-earnings ratio of 30.26, a PEG ratio of 1.09 and a beta of 1.16. The company’s 50-day moving average price is $64.60 and its two-hundred day moving average price is $63.21. The company has a current ratio of 2.13, a quick ratio of 1.76 and a debt-to-equity ratio of 0.67.

BorgWarner (NYSE:BWA) last issued its quarterly earnings results on Wednesday, August 5th. The auto parts company reported $1.42 earnings per share for the quarter, topping analysts’ consensus estimates of $1.28 by $0.14. BorgWarner had a net margin of 2.89% and a return on equity of 19.10%. The company had revenue of $3.65 billion during the quarter, compared to analyst estimates of $3.58 billion. During the same period in the prior year, the business posted $1.21 EPS. The business’s revenue for the quarter was up .3% compared to the same quarter last year. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. On average, analysts expect that BorgWarner will post 5.2 EPS for the current fiscal year.

BorgWarner Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st were issued a $0.17 dividend. This represents a $0.68 annualized dividend and a dividend yield of 1.1%. The ex-dividend date was Tuesday, September 1st. BorgWarner’s dividend payout ratio (DPR) is presently 34.00%.

BorgWarner declared that its board has authorized a stock repurchase program on Wednesday, August 5th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the auto parts company to purchase up to 7.7% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board of directors believes its stock is undervalued.

Insider Activity

In other news, Director Michael Hanley sold 5,000 shares of the business’s stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $65.51, for a total transaction of $327,550.00. Following the sale, the director owned 34,313 shares in the company, valued at $2,247,844.63. The trade was a 12.72% 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, CAO Amy Kulikowski sold 2,900 shares of the company’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $68.60, for a total transaction of $198,940.00. Following the completion of the sale, the chief accounting officer owned 9,725 shares of the company’s stock, valued at approximately $667,135. This trade represents a 22.97% decrease in their position. The SEC filing for this sale provides additional information. 0.76% of the stock is owned by company insiders.

Hedge Funds Weigh In On BorgWarner

A number of large investors have recently made changes to their positions in the business. BlackRock Inc. acquired a new stake in shares of BorgWarner during the second quarter worth approximately $1,678,187,000. William Blair Investment Management LLC purchased a new stake in BorgWarner in the 2nd quarter worth approximately $251,305,000. Bank of America Corp DE acquired a new stake in shares of BorgWarner during the 2nd quarter valued at $250,618,000. Norges Bank purchased a new position in shares of BorgWarner during the 4th quarter valued at $156,794,000. Finally, Bank of New York Mellon Corp purchased a new position in shares of BorgWarner during the 2nd quarter valued at $112,292,000. Institutional investors and hedge funds own 95.67% of the company’s stock.

About BorgWarner

BorgWarner Inc is a global automotive supplier that develops and manufactures propulsion, drivetrain, thermal-management and emissions technologies. The company serves automakers and commercial-vehicle manufacturers, supplying components and systems for internal-combustion, hybrid and electric vehicles.

Its product portfolio includes turbochargers, transmission systems, all-wheel-drive and four-wheel-drive technologies, clutches, timing systems, battery systems, power electronics, electric motors, thermal-management products and charging-related technologies.