BorgWarner Inc. (NYSE:BWA) Given Consensus Rating of “Moderate Buy” by Analysts

Shares of BorgWarner Inc. (NYSE:BWA) have earned a consensus recommendation of “Moderate Buy” from the fifteen brokerages that are covering the stock, MarketBeat reports. Six investment analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. The average 12 month price target among brokerages that have updated their coverage on the stock in the last year is $76.6667.

BWA has been the topic of a number of recent research reports. UBS Group upgraded BorgWarner from a “neutral” rating to a “buy” rating and boosted their price objective for the stock from $61.00 to $95.00 in a research note on Wednesday, June 10th. TD Cowen boosted their price target on BorgWarner from $67.00 to $68.00 and gave the stock a “hold” rating in a research report on Thursday, August 6th. JPMorgan Chase & Co. upped their price target on BorgWarner from $75.00 to $85.00 and gave the stock an “overweight” rating in a report on Monday, August 10th. Robert W. Baird set a $79.00 price objective on shares of BorgWarner in a research report on Thursday, August 6th. Finally, Wall Street Zen raised shares of BorgWarner from a “hold” rating to a “buy” rating in a research report on Saturday, June 27th.

BorgWarner Stock Performance

Shares of BWA stock opened at $67.53 on Friday. The company’s fifty day simple moving average is $65.14 and its 200-day simple moving average is $62.24. BorgWarner has a 52 week low of $40.50 and a 52 week high of $78.82. 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 company has a market cap of $13.75 billion, a PE ratio of 33.77, a P/E/G ratio of 1.18 and a beta of 1.12.

BorgWarner (NYSE:BWA) last posted its earnings results on Wednesday, August 5th. The auto parts company reported $1.42 earnings per share for the quarter, beating the consensus estimate of $1.28 by $0.14. BorgWarner had a net margin of 2.89% and a return on equity of 19.10%. The business had revenue of $3.65 billion for the quarter, compared to analyst estimates of $3.58 billion. During the same quarter in the previous year, the business posted $1.21 EPS. The business’s quarterly revenue was up .3% on a year-over-year basis. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. As a group, equities research analysts anticipate that BorgWarner will post 5.2 EPS for the current 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 issued a $0.17 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $0.68 dividend on an annualized basis and a yield of 1.0%. BorgWarner’s payout ratio is currently 34.00%.

BorgWarner declared that its Board of Directors has approved a share 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 buy up to 7.7% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s board of directors believes its stock is undervalued.

Insider Buying and Selling at BorgWarner

In other news, Director Michael Hanley sold 5,000 shares of the firm’s stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $65.51, for a total transaction of $327,550.00. Following the completion of the sale, 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 ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Amy Kulikowski sold 2,900 shares of BorgWarner stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $68.60, for a total value of $198,940.00. Following the sale, the chief accounting officer directly owned 9,725 shares in the company, valued at approximately $667,135. The trade was a 22.97% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.76% of the stock is currently owned by corporate insiders.

Institutional Trading of BorgWarner

A number of hedge funds have recently made changes to their positions in BWA. Corient Private Wealth LP boosted its stake in BorgWarner by 88.6% during the 2nd quarter. Corient Private Wealth LP now owns 37,530 shares of the auto parts company’s stock valued at $2,492,000 after acquiring an additional 17,629 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in BorgWarner during the 2nd quarter worth $5,664,000. California State Teachers Retirement System increased its position in shares of BorgWarner by 6,262.3% in the 2nd quarter. California State Teachers Retirement System now owns 15,870,795 shares of the auto parts company’s stock worth $1,053,821,000 after purchasing an additional 15,621,343 shares during the last quarter. AlphaGrep UK Ltd acquired a new stake in shares of BorgWarner in the 2nd quarter valued at about $493,000. Finally, AXQ Capital LP acquired a new stake in shares of BorgWarner in the 2nd quarter valued at about $271,000. Institutional investors and hedge funds own 95.67% of the company’s stock.

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.