BorgWarner (NYSE:BWA) Reaches New 12-Month High – Time to Buy?

BorgWarner Inc. (NYSE:BWA) hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $48.53 and last traded at $48.1520, with a volume of 1505697 shares changing hands. The stock had previously closed at $48.27.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on BWA. Weiss Ratings reiterated a “hold (c)” rating on shares of BorgWarner in a research report on Wednesday, October 8th. Piper Sandler reiterated a “neutral” rating and issued a $51.00 target price (down previously from $52.00) on shares of BorgWarner in a research note on Thursday, January 8th. UBS Group increased their price target on BorgWarner from $46.00 to $49.00 and gave the stock a “neutral” rating in a research report on Wednesday. Evercore ISI raised their price target on BorgWarner from $50.00 to $53.00 and gave the company an “outperform” rating in a report on Monday, November 24th. Finally, Morgan Stanley reissued an “equal weight” rating and issued a $49.00 price objective (up previously from $42.00) on shares of BorgWarner in a research note on Monday, December 8th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and eight have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $47.31.

BorgWarner Trading Up 1.2%

The company has a quick ratio of 1.69, a current ratio of 2.05 and a debt-to-equity ratio of 0.63. The business’s fifty day moving average is $44.91 and its two-hundred day moving average is $42.24. The firm has a market cap of $10.40 billion, a price-to-earnings ratio of 77.20, a price-to-earnings-growth ratio of 0.94 and a beta of 1.06.

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

BorgWarner Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, December 15th. Investors of record on Monday, December 1st were given a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date was Monday, December 1st. BorgWarner’s dividend payout ratio (DPR) is presently 107.94%.

Insider Activity

In other BorgWarner news, VP Stefan Demmerle sold 5,000 shares of the company’s stock in a transaction dated Wednesday, November 12th. The shares were sold at an average price of $46.00, for a total transaction of $230,000.00. Following the transaction, the vice president directly owned 204,040 shares in the company, valued at approximately $9,385,840. This represents a 2.39% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, VP Isabelle Mckenzie sold 3,200 shares of the firm’s stock in a transaction dated Tuesday, November 4th. The shares were sold at an average price of $44.23, for a total transaction of $141,536.00. Following the completion of the transaction, 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 disclosure for this sale is available in the SEC filing. Insiders have sold a total of 23,200 shares of company stock valued at $1,054,336 over the last three months. Company insiders own 0.45% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Acadian Asset Management LLC grew its stake in shares of BorgWarner by 23.7% during the first quarter. Acadian Asset Management LLC now owns 8,979 shares of the auto parts company’s stock worth $257,000 after purchasing an additional 1,723 shares during the period. Inspire Investing LLC boosted its holdings in BorgWarner by 35.6% during the first quarter. Inspire Investing LLC now owns 11,052 shares of the auto parts company’s stock worth $317,000 after buying an additional 2,902 shares during the last quarter. Parallel Advisors LLC grew its position in shares of BorgWarner by 67.4% during the 2nd quarter. Parallel Advisors LLC now owns 3,812 shares of the auto parts company’s stock worth $128,000 after buying an additional 1,535 shares during the period. Pallas Capital Advisors LLC bought a new stake in shares of BorgWarner in the 2nd quarter valued at about $567,000. Finally, Chesley Taft & Associates LLC acquired a new stake in shares of BorgWarner in the 2nd quarter valued at approximately $305,000. 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.