Bank of America Upgrades BorgWarner (NYSE:BWA) to “Buy”

BorgWarner (NYSE:BWA) was upgraded by equities research analysts at Bank of America from a “neutral” rating to a “buy” rating in a report issued on Thursday, Briefing.com reports. The brokerage currently has a $85.00 price objective on the auto parts company’s stock. Bank of America‘s price objective suggests a potential upside of 45.72% from the stock’s previous close.

Other equities analysts have also recently issued research reports about the company. UBS Group dropped their price objective on BorgWarner from $95.00 to $91.00 and set a “buy” rating for the company in a report on Wednesday, October 7th. Morgan Stanley increased their target price on BorgWarner from $67.00 to $71.00 and gave the stock an “equal weight” rating in a research note on Thursday, August 6th. Weiss Ratings reiterated a “hold (c+)” rating on shares of BorgWarner in a research report on Friday, September 25th. TD Cowen boosted their target price on shares of BorgWarner from $67.00 to $68.00 and gave the company a “hold” rating in a research note on Thursday, August 6th. Finally, Barclays upped their price target on shares of BorgWarner from $83.00 to $85.00 and gave the stock an “overweight” rating in a report on Monday, August 10th. Ten analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, BorgWarner currently has an average rating of “Moderate Buy” and an average price target of $79.00.

BorgWarner Stock Down 3.7%

Shares of BWA opened at $58.33 on Thursday. The company has a quick ratio of 1.76, a current ratio of 2.13 and a debt-to-equity ratio of 0.67. The business has a fifty day moving average of $64.16 and a 200 day moving average of $63.63. The company has a market cap of $11.88 billion, a PE ratio of 29.17, a P/E/G ratio of 1.09 and a beta of 1.16. BorgWarner has a 52-week low of $40.73 and a 52-week high of $78.82.

BorgWarner (NYSE:BWA) last issued its quarterly earnings results on Wednesday, August 5th. The auto parts company reported $1.42 EPS for the quarter, beating the consensus estimate 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 the consensus estimate of $3.58 billion. During the same period in the prior year, the firm posted $1.21 EPS. The firm’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, sell-side analysts expect that BorgWarner will post 5.20 EPS for the current year.

BorgWarner declared that its Board of Directors has initiated a stock repurchase program on Wednesday, August 5th that permits the company to buy back $1.00 billion in outstanding shares. This repurchase authorization permits the auto parts company to reacquire up to 7.7% of its shares through open market purchases. Share repurchase programs are typically a sign that the company’s board of directors believes its shares are undervalued.

Insiders Place Their Bets

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

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of BWA. Fortitude Family Office LLC grew its holdings in BorgWarner by 183.4% in the third quarter. Fortitude Family Office LLC now owns 1,451 shares of the auto parts company’s stock worth $87,000 after purchasing an additional 939 shares during the last quarter. Krilogy Financial LLC lifted its holdings in shares of BorgWarner by 5.9% during the 3rd quarter. Krilogy Financial LLC now owns 33,699 shares of the auto parts company’s stock valued at $2,023,000 after purchasing an additional 1,890 shares during the last quarter. NorthCrest Asset Manangement LLC lifted its holdings in shares of BorgWarner by 2.7% during the 3rd quarter. NorthCrest Asset Manangement LLC now owns 19,214 shares of the auto parts company’s stock valued at $1,186,000 after purchasing an additional 512 shares during the last quarter. Riversedge Advisors LLC lifted its holdings in shares of BorgWarner by 10.0% during the 3rd quarter. Riversedge Advisors LLC now owns 4,886 shares of the auto parts company’s stock valued at $294,000 after purchasing an additional 443 shares during the last quarter. Finally, GAMMA Investing LLC boosted its position in shares of BorgWarner by 5.0% in the 3rd quarter. GAMMA Investing LLC now owns 9,884 shares of the auto parts company’s stock worth $594,000 after purchasing an additional 471 shares in the last quarter. Institutional investors own 95.67% of the company’s stock.

About BorgWarner

BorgWarner Inc is a global automotive supplier that develops and manufactures propulsion, drivetrain, thermal-management and emissions technologies. The company serves automakers and commercial-vehicle manufacturers, supplying components and systems for internal-combustion, hybrid and electric vehicles.

Its product portfolio includes turbochargers, transmission systems, all-wheel-drive and four-wheel-drive technologies, clutches, timing systems, battery systems, power electronics, electric motors, thermal-management products and charging-related technologies.