BorgWarner (NYSE:BWA) Sets New 52-Week High – What’s Next?

BorgWarner Inc. (NYSE:BWA)’s share price hit a new 52-week high during mid-day trading on Thursday . The stock traded as high as $47.99 and last traded at $47.4420, with a volume of 1748594 shares. The stock had previously closed at $47.89.

Analysts Set New Price Targets

Several brokerages have recently weighed in on BWA. UBS Group upped their price target on shares of BorgWarner from $43.00 to $46.00 and gave the stock a “neutral” rating in a research report on Monday, October 6th. Wells Fargo & Company reduced their price objective on shares of BorgWarner from $54.00 to $52.00 and set an “overweight” rating for the company in a research note on Tuesday, December 9th. Zacks Research cut BorgWarner from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 13th. JPMorgan Chase & Co. lifted their price target on BorgWarner from $45.00 to $53.00 and gave the company an “overweight” rating in a report on Monday, October 20th. Finally, Morgan Stanley restated an “equal weight” rating and set a $49.00 price objective (up from $42.00) on shares of BorgWarner in a research note on Monday, December 8th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $46.46.

BorgWarner Stock Down 0.9%

The company’s fifty day simple moving average is $44.44 and its 200-day simple moving average is $41.69. The firm has a market capitalization of $10.15 billion, a PE ratio of 75.31, a price-to-earnings-growth ratio of 0.93 and a beta of 1.06. The company has a debt-to-equity ratio of 0.63, a current ratio of 2.05 and a quick ratio of 1.69.

BorgWarner (NYSE:BWA) last posted its quarterly earnings data on Thursday, October 30th. The auto parts company reported $1.24 earnings per share for the quarter, topping analysts’ consensus estimates of $1.16 by $0.08. BorgWarner had a return on equity of 16.72% and a net margin of 0.94%.The firm had revenue of $3.59 billion during the quarter, compared to analysts’ expectations of $3.58 billion. During the same quarter last year, the firm earned $1.09 EPS. The business’s quarterly revenue was up 4.1% on a year-over-year basis. BorgWarner has set its FY 2025 guidance at 4.600-4.750 EPS. On average, analysts forecast that BorgWarner Inc. will post 4.28 EPS for the current year.

BorgWarner Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, December 15th. Stockholders of record on Monday, December 1st were paid a dividend of $0.17 per share. The ex-dividend date was Monday, December 1st. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.4%. BorgWarner’s payout ratio is presently 107.94%.

Insider Activity at BorgWarner

In related news, VP Isabelle Mckenzie sold 3,200 shares of BorgWarner stock in a transaction that occurred on Tuesday, November 4th. The shares were sold at an average price of $44.23, for a total value of $141,536.00. Following the completion of the sale, the vice president directly owned 43,555 shares in the company, valued at $1,926,437.65. This trade represents a 6.84% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, VP Stefan Demmerle sold 15,000 shares of the business’s stock in a transaction that occurred on Tuesday, November 11th. The stock was sold at an average price of $45.52, for a total transaction of $682,800.00. Following the sale, the vice president directly owned 209,040 shares in the company, valued at approximately $9,515,500.80. This represents a 6.70% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 23,200 shares of company stock valued at $1,054,336 over the last ninety days. 0.45% of the stock is currently owned by insiders.

Hedge Funds Weigh In On BorgWarner

Hedge funds have recently made changes to their positions in the company. Commonwealth of Pennsylvania Public School Empls Retrmt SYS increased its stake in BorgWarner by 7.8% during the 2nd quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 56,411 shares of the auto parts company’s stock worth $1,889,000 after buying an additional 4,078 shares in the last quarter. CWM LLC boosted its stake in shares of BorgWarner by 218.3% in the third quarter. CWM LLC now owns 235,861 shares of the auto parts company’s stock worth $10,368,000 after acquiring an additional 161,755 shares during the last quarter. Pallas Capital Advisors LLC purchased a new stake in shares of BorgWarner during the second quarter worth approximately $567,000. Columbia Bank acquired a new position in BorgWarner in the 2nd quarter valued at $239,000. Finally, Kera Capital Partners Inc. purchased a new position in BorgWarner in the 2nd quarter valued at $212,000. 95.67% of the stock is owned by institutional investors and hedge funds.

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.