Insider Buying: BorgWarner (NYSE:BWA) Director Purchases $500,639.13 in Stock

BorgWarner Inc. (NYSE:BWA) Director Rajesh Kalathur bought 7,407 shares of the stock in a transaction that occurred on Wednesday, August 19th. The stock was purchased at an average price of $67.59 per share, for a total transaction of $500,639.13. Following the completion of the purchase, the director directly owned 7,407 shares in the company, valued at $500,639.13. The trade was a ∞ increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link.

BorgWarner Stock Performance

Shares of BWA opened at $67.74 on Friday. The company has a market capitalization of $13.80 billion, a PE ratio of 33.87, a price-to-earnings-growth ratio of 1.22 and a beta of 1.10. The company has a debt-to-equity ratio of 0.67, a current ratio of 2.13 and a quick ratio of 1.76. BorgWarner Inc. has a one year low of $40.50 and a one year high of $78.82. The company’s fifty day moving average price is $66.34 and its 200 day moving average price is $61.56.

BorgWarner (NYSE:BWA) last released its quarterly earnings results on Wednesday, August 5th. The auto parts company reported $1.42 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.28 by $0.14. The company had revenue of $3.65 billion during the quarter, compared to analysts’ expectations of $3.58 billion. BorgWarner had a net margin of 2.89% and a return on equity of 19.10%. The business’s quarterly revenue was up .3% compared to the same quarter last year. During the same period in the prior year, the company earned $1.21 earnings per share. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. As a group, analysts expect that BorgWarner Inc. will post 5.19 earnings per share for the current year.

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

BorgWarner Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be given a dividend of $0.17 per share. 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 payout ratio is currently 34.00%.

Wall Street Analyst Weigh In

Several research analysts have commented on BWA shares. Deutsche Bank Aktiengesellschaft set a $80.00 price target on BorgWarner in a research report on Thursday, August 6th. JPMorgan Chase & Co. increased their price objective on BorgWarner from $75.00 to $85.00 and gave the company an “overweight” rating in a research report on Monday, August 10th. Robert W. Baird set a $79.00 price objective on shares of BorgWarner in a research note on Thursday, August 6th. TD Cowen boosted their target price on shares of BorgWarner from $67.00 to $68.00 and gave the stock a “hold” rating in a research report on Thursday, August 6th. Finally, Morgan Stanley upped their target price on shares of BorgWarner from $67.00 to $71.00 and gave the company an “equal weight” rating in a research note on Thursday, August 6th. Nine equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $75.93.

Hedge Funds Weigh In On BorgWarner

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Clearstead Trust LLC bought a new stake in shares of BorgWarner in the 2nd quarter worth approximately $28,000. Prosperity Bancshares Inc acquired a new stake in shares of BorgWarner during the 4th quarter worth approximately $37,000. Ceredex Value Advisors LLC bought a new stake in shares of BorgWarner during the second quarter valued at approximately $40,000. Torren Management LLC bought a new stake in shares of BorgWarner during the fourth quarter valued at approximately $48,000. Finally, Fiduciary Financial Advisors acquired a new position in shares of BorgWarner in the second quarter valued at $49,000. 95.67% of the stock is currently owned by institutional investors.

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.