BorgWarner (NYSE:BWA) Downgraded to “Hold” Rating by Wall Street Zen

Wall Street Zen downgraded shares of BorgWarner (NYSE:BWA) from a buy rating to a hold rating in a report issued on Saturday morning,Wall Street Zen reports.

Several other research analysts have also recently issued reports on BWA. Royal Bank Of Canada started coverage on BorgWarner in a research report on Monday, August 31st. They issued an “outperform” rating and a $87.00 price objective for the company. Robert W. Baird set a $79.00 target price on shares of BorgWarner in a research report on Thursday, August 6th. TD Cowen upped their price target on shares of BorgWarner from $67.00 to $68.00 and gave the stock a “hold” rating in a research note on Thursday, August 6th. UBS Group upgraded shares of BorgWarner from a “neutral” rating to a “buy” rating and increased their price target for the company from $61.00 to $95.00 in a report on Wednesday, June 10th. Finally, Deutsche Bank Aktiengesellschaft set a $80.00 price objective on shares of BorgWarner in a research note on Thursday, August 6th. Nine research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $78.86.

BorgWarner Price Performance

Shares of NYSE:BWA opened at $66.69 on Friday. BorgWarner has a 52 week low of $40.50 and a 52 week high of $78.82. The company has a 50-day moving average price of $65.30 and a 200 day moving average price of $62.42. The company has a market cap of $13.58 billion, a P/E ratio of 33.35, a PEG ratio of 1.20 and a beta of 1.12. The company has a quick ratio of 1.76, a current ratio of 2.13 and a debt-to-equity ratio of 0.67.

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

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 given a $0.17 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.0%. BorgWarner’s dividend payout ratio (DPR) is currently 34.00%.

BorgWarner declared that its Board of Directors has authorized a share repurchase plan on Wednesday, August 5th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the auto parts company to reacquire up to 7.7% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s leadership believes its stock is undervalued.

Insider Transactions at BorgWarner

In other BorgWarner news, Director Rajesh Kalathur bought 7,407 shares of the company’s stock in a transaction on Wednesday, August 19th. The stock was purchased at an average cost of $67.59 per share, for a total transaction of $500,639.13. Following the acquisition, the director owned 7,407 shares of the company’s stock, valued at $500,639.13. The trade was a ∞ increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Michael S. Hanley sold 5,000 shares of BorgWarner 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 transaction, the director owned 34,313 shares of the company’s stock, valued at approximately $2,247,844.63. The trade was a 12.72% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.76% of the company’s stock.

Institutional Inflows and Outflows

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

About BorgWarner

BorgWarner Inc (NYSE:BWA) is a global automotive technology company headquartered in Auburn Hills, Michigan. The company develops and supplies propulsion and drivetrain systems for passenger vehicles, commercial vehicles and off-highway applications, serving automakers and other transportation manufacturers worldwide.

Its product portfolio includes turbochargers, transmission systems, dual-clutch modules, four-wheel-drive systems, emissions technologies, and components for hybrid and internal-combustion vehicles.