BorgWarner Inc. (NYSE:BWA) Given Consensus Recommendation of “Moderate Buy” by Brokerages

Shares of BorgWarner Inc. (NYSE:BWA) have received a consensus recommendation of “Moderate Buy” from the fifteen ratings firms that are covering the stock, MarketBeat Ratings reports. Six investment analysts have rated the stock with a hold rating and nine have given a buy rating to the company. The average 12 month price target among brokerages that have issued a report on the stock in the last year is $76.6667.

Several equities analysts recently issued reports on BWA shares. Deutsche Bank Aktiengesellschaft set a $80.00 price objective on shares of BorgWarner in a research note on Thursday, August 6th. Wolfe Research reiterated an “outperform” rating and issued a $95.00 price target on shares of BorgWarner in a report on Wednesday, June 3rd. TD Cowen increased their price target on BorgWarner from $67.00 to $68.00 and gave the stock a “hold” rating in a research note on Thursday, August 6th. JPMorgan Chase & Co. raised their price objective on BorgWarner from $75.00 to $85.00 and gave the stock an “overweight” rating in a report on Monday, August 10th. Finally, Weiss Ratings upgraded BorgWarner from a “hold (c)” rating to a “hold (c+)” rating in a research note on Monday, June 29th.

Insider Activity

In related news, CAO Amy B. Kulikowski sold 2,900 shares of the company’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $68.60, for a total transaction of $198,940.00. Following the completion of the transaction, the chief accounting officer owned 9,725 shares of the company’s stock, valued at approximately $667,135. This represents a 22.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Rajesh Kalathur purchased 7,407 shares of the business’s stock in a transaction on Wednesday, August 19th. The shares were bought at an average cost of $67.59 per share, for a total transaction of $500,639.13. Following the purchase, the director owned 7,407 shares of the company’s stock, valued at $500,639.13. This trade represents a ∞ increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Corporate insiders own 0.76% of the company’s stock.

Institutional Trading of BorgWarner

Institutional investors and hedge funds have recently made changes to their positions in the company. BlackRock Inc. purchased a new stake in BorgWarner during the second quarter valued at about $1,678,187,000. California State Teachers Retirement System raised its holdings in shares of BorgWarner by 6,262.3% in the 2nd quarter. California State Teachers Retirement System now owns 15,870,795 shares of the auto parts company’s stock worth $1,053,821,000 after purchasing an additional 15,621,343 shares during the period. Dimensional Fund Advisors LP lifted its stake in shares of BorgWarner by 1.5% in the 4th quarter. Dimensional Fund Advisors LP now owns 11,961,482 shares of the auto parts company’s stock valued at $538,996,000 after purchasing an additional 178,853 shares in the last quarter. AQR Capital Management LLC lifted its stake in shares of BorgWarner by 22.7% in the 4th quarter. AQR Capital Management LLC now owns 9,222,352 shares of the auto parts company’s stock valued at $415,559,000 after purchasing an additional 1,703,576 shares in the last quarter. Finally, State Street Corp grew its holdings in shares of BorgWarner by 5.3% during the 2nd quarter. State Street Corp now owns 7,633,760 shares of the auto parts company’s stock worth $255,578,000 after purchasing an additional 380,942 shares during the period. 95.67% of the stock is currently owned by institutional investors and hedge funds.

BorgWarner Trading Up 2.7%

BorgWarner stock opened at $67.53 on Friday. The stock has a market cap of $13.75 billion, a PE ratio of 33.77, a P/E/G ratio of 1.18 and a beta of 1.12. The stock has a 50-day moving average price of $65.14 and a 200 day moving average price of $62.24. BorgWarner has a 52 week low of $40.50 and a 52 week high of $78.82. The company has a current ratio of 2.13, a quick ratio of 1.76 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, beating analysts’ consensus estimates of $1.28 by $0.14. BorgWarner had a net margin of 2.89% and a return on equity of 19.10%. The company had revenue of $3.65 billion for the quarter, compared to analyst estimates of $3.58 billion. During the same period in the prior year, the firm earned $1.21 EPS. The firm’s quarterly revenue was up .3% on a year-over-year basis. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. Equities research analysts predict that BorgWarner will post 5.2 earnings per share for the current fiscal year.

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

BorgWarner Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be issued a $0.17 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $0.68 annualized dividend and a yield of 1.0%. BorgWarner’s payout ratio is 34.00%.

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.