Share Buyback Program Approved by BorgWarner (NYSE:BWA) Board

BorgWarner (NYSE:BWA) announced that its Board of Directors has approved a stock repurchase plan on Wednesday, August 5th, RTT News reports. The company plans to buyback $1.00 billion in shares. This buyback authorization allows the auto parts company to buy up to 7.7% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s management believes its stock is undervalued.

BorgWarner Stock Performance

Shares of BWA stock traded up $3.77 during mid-day trading on Wednesday, reaching $66.81. The stock had a trading volume of 3,537,749 shares, compared to its average volume of 2,152,699. BorgWarner has a 1-year low of $37.84 and a 1-year high of $78.82. The firm has a market cap of $13.70 billion, a price-to-earnings ratio of 39.53, a PEG ratio of 1.35 and a beta of 1.10. The company has a current ratio of 2.13, a quick ratio of 1.75 and a debt-to-equity ratio of 0.69. The business’s fifty day moving average is $67.74 and its 200-day moving average is $59.96.

BorgWarner (NYSE:BWA) last released its earnings results on Wednesday, August 5th. The auto parts company reported $1.42 EPS for the quarter, topping analysts’ consensus estimates of $1.28 by $0.14. BorgWarner had a return on equity of 18.36% and a net margin of 2.53%.The firm had revenue of $3.65 billion during the quarter, compared to the consensus estimate of $3.58 billion. During the same quarter in the previous year, the company posted $1.21 earnings per share. The company’s revenue was up .3% compared to the same quarter last year. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. On average, research analysts forecast that BorgWarner will post 5.16 earnings per share for the current year.

BorgWarner Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be issued a $0.17 dividend. This represents a $0.68 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend is Tuesday, September 1st. BorgWarner’s dividend payout ratio is 40.24%.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on BWA. Wells Fargo & Company boosted their target price on BorgWarner from $68.00 to $83.00 and gave the stock an “overweight” rating in a research note on Tuesday, June 2nd. Barclays increased their price target on BorgWarner from $75.00 to $83.00 and gave the company an “overweight” rating in a research note on Thursday, July 9th. UBS Group upgraded BorgWarner from a “neutral” rating to a “buy” rating and boosted their price target for the stock from $61.00 to $95.00 in a research note on Wednesday, June 10th. JPMorgan Chase & Co. upped their price objective on shares of BorgWarner from $73.00 to $75.00 and gave the company an “overweight” rating in a report on Thursday, May 14th. Finally, Sanford C. Bernstein raised shares of BorgWarner to a “buy” rating in a research report on Wednesday, June 10th. Nine investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, BorgWarner presently has an average rating of “Moderate Buy” and an average price target of $74.57.

Insider Buying and Selling at BorgWarner

In related news, CEO Joseph F. Fadool sold 29,000 shares of the firm’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 transaction, the chief executive officer owned 405,964 shares of the company’s stock, valued at $27,325,436.84. This trade represents a 6.67% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP Isabelle Mckenzie sold 3,500 shares of the business’s stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $63.35, for a total transaction of $221,725.00. Following the transaction, the vice president owned 57,828 shares of the company’s stock, valued at $3,663,403.80. This represents a 5.71% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 67,500 shares of company stock worth $4,310,115 over the last ninety days. 0.76% of the stock is owned by insiders.

Key Stories Impacting BorgWarner

Here are the key news stories impacting BorgWarner this week:

• Positive Sentiment: Quarterly results exceeded expectations. BorgWarner reported adjusted EPS of $1.42, up from $1.21 a year ago and ahead of the $1.26-$1.28 analyst consensus. Revenue of $3.65 billion also surpassed the approximately $3.58 billion estimate, while sales increased 0.3% year over year. BorgWarner Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Full-year adjusted EPS guidance was raised. BorgWarner now expects 2026 EPS of $5.05-$5.30, compared with the previous outlook and roughly $5.19 consensus. Revenue guidance of $14.0-$14.3 billion is broadly in line with expectations, indicating the main upgrade is profitability-related. BorgWarner Reports Second Quarter Results
• Positive Sentiment: Capital returns and future business wins support the investment case. The company increased its share-repurchase authorization by $1 billion and announced seven awards across its portfolio. It also secured variable cam timing programs in Europe and China, providing potential longer-term revenue opportunities. BorgWarner Secures Variable Cam Timing Awards
• Negative Sentiment: Investors remain focused on segment headwinds. Management’s earnings-call commentary indicated that weakness or drag from the BES business is offsetting some of the company’s operating strength. This could limit near-term margin expansion despite the improved EPS outlook. BorgWarner Balances Earnings Strength With BES Drag

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.