BorgWarner (NYSE:BWA) Announces Earnings Results

BorgWarner (NYSE:BWA) released its quarterly earnings data on Wednesday. The auto parts company reported $1.42 EPS for the quarter, topping the consensus estimate of $1.28 by $0.14, FiscalAI reports. The business had revenue of $3.65 billion for the quarter, compared to analyst estimates of $3.58 billion. BorgWarner had a return on equity of 19.10% and a net margin of 2.89%.The business’s quarterly revenue was up .3% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.21 EPS. BorgWarner updated its FY 2026 guidance to 5.050-5.300 EPS.

BorgWarner Price Performance

NYSE BWA traded up $2.95 during mid-day trading on Friday, hitting $68.75. The stock had a trading volume of 755,012 shares, compared to its average volume of 2,862,991. The firm’s 50 day moving average is $67.63 and its 200 day moving average is $60.09. BorgWarner has a twelve month low of $38.13 and a twelve month 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 1.75. The stock has a market capitalization of $14.10 billion, a price-to-earnings ratio of 34.31, a PEG ratio of 1.43 and a beta of 1.10.

BorgWarner Announces Dividend

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

BorgWarner announced that its Board of Directors has approved a stock buyback program 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 programs are typically a sign that the company’s board believes its shares are undervalued.

Insider Buying and Selling at BorgWarner

In other news, CEO Joseph F. Fadool sold 29,000 shares of the company’s stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $67.31, for a total transaction 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 represents a 6.67% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Stefan Demmerle sold 5,000 shares of the firm’s stock in a transaction dated Wednesday, May 13th. The stock was sold at an average price of $65.00, for a total transaction of $325,000.00. Following the completion of the transaction, the vice president directly owned 203,746 shares in the company, valued at approximately $13,243,490. This represents a 2.40% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 47,500 shares of company stock worth $3,124,915. Company insiders own 0.76% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in BWA. Dimensional Fund Advisors LP increased its holdings in shares of BorgWarner by 1.5% in the fourth quarter. Dimensional Fund Advisors LP now owns 11,961,482 shares of the auto parts company’s stock valued at $538,996,000 after purchasing an additional 178,853 shares during the last quarter. AQR Capital Management LLC grew its holdings in BorgWarner by 22.7% in the 4th quarter. AQR Capital Management LLC now owns 9,222,352 shares of the auto parts company’s stock valued at $415,559,000 after buying an additional 1,703,576 shares in the last quarter. State Street Corp increased its stake in shares of BorgWarner by 5.3% in the 2nd quarter. State Street Corp now owns 7,633,760 shares of the auto parts company’s stock worth $255,578,000 after acquiring an additional 380,942 shares during the last quarter. Bank of America Corp DE raised its holdings in shares of BorgWarner by 4.3% during the 3rd quarter. Bank of America Corp DE now owns 3,727,884 shares of the auto parts company’s stock worth $163,878,000 after acquiring an additional 153,637 shares during the period. Finally, Fuller & Thaler Asset Management Inc. raised its holdings in shares of BorgWarner by 14.6% during the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 3,274,442 shares of the auto parts company’s stock worth $147,546,000 after acquiring an additional 417,221 shares during the period. 95.67% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of analysts recently issued reports on the stock. 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. JPMorgan Chase & Co. upped their price objective on shares of BorgWarner from $73.00 to $75.00 and gave the stock an “overweight” rating in a research report on Thursday, May 14th. Barclays raised their target price on BorgWarner from $75.00 to $83.00 and gave the company an “overweight” rating in a research report on Thursday, July 9th. Morgan Stanley upped their price target on BorgWarner from $67.00 to $71.00 and gave the stock an “equal weight” rating in a report on Thursday. Finally, Wells Fargo & Company increased their price target on BorgWarner from $68.00 to $83.00 and gave the stock an “overweight” rating in a research report on Tuesday, June 2nd. Nine 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.com, BorgWarner currently has a consensus rating of “Moderate Buy” and a consensus price target of $75.07.

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.