BorgWarner (NYSE:BWA) Cut to “Hold” at Wall Street Zen

Wall Street Zen cut shares of BorgWarner (NYSE:BWA) from a buy rating to a hold rating in a report released on Saturday morning,Wall Street Zen reports.

Other equities research analysts also recently issued reports about the company. Deutsche Bank Aktiengesellschaft set a $80.00 target price on BorgWarner in a report on Thursday, August 6th. TD Cowen raised their price target on BorgWarner from $67.00 to $68.00 and gave the company a “hold” rating in a report on Thursday, August 6th. UBS Group lowered their price target on BorgWarner from $95.00 to $91.00 and set a “buy” rating for the company in a research report on Wednesday, October 7th. Bank of America upgraded shares of BorgWarner from a “neutral” rating to a “buy” rating and upped their price target for the stock from $78.00 to $85.00 in a research note on Thursday, October 15th. Finally, Barclays increased their price objective on shares of BorgWarner from $83.00 to $85.00 and gave the company an “overweight” rating in a research report on Monday, August 10th. Ten analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, BorgWarner has a consensus rating of “Moderate Buy” and an average price target of $79.00.

BorgWarner Price Performance

Shares of BWA opened at $55.13 on Friday. The stock has a market cap of $11.23 billion, a PE ratio of 27.57, a price-to-earnings-growth ratio of 0.81 and a beta of 1.16. The company has a debt-to-equity ratio of 0.67, a quick ratio of 1.76 and a current ratio of 2.13. BorgWarner has a fifty-two week low of $40.73 and a fifty-two week high of $78.82. The firm’s 50-day simple moving average is $62.36 and its two-hundred day simple moving average is $60.41.

BorgWarner (NYSE:BWA) last issued its quarterly 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. The firm had revenue of $3.65 billion for the quarter, compared to analysts’ expectations of $3.58 billion. BorgWarner had a return on equity of 19.10% and a net margin of 2.89%. The business’s revenue for the quarter was up .3% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.21 EPS. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. Analysts anticipate that BorgWarner will post 5.19 earnings per share for the current fiscal year.

BorgWarner Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st were paid a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a yield of 1.2%. The ex-dividend date was Tuesday, September 1st. BorgWarner’s dividend payout ratio (DPR) is currently 34.00%.

BorgWarner announced that its Board of Directors has approved a stock repurchase plan on Wednesday, August 5th that allows the company to buy back $1 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 often an indication that the company’s management believes its stock is undervalued.

Insiders Place Their Bets

In other news, CAO Amy Kulikowski sold 2,900 shares of the business’s stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $68.60, for a total value of $198,940.00. Following the completion of the transaction, the chief accounting officer owned 9,725 shares in the company, valued at $667,135. The trade was a 22.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Michael Hanley sold 5,000 shares of the business’s stock in a transaction on Friday, August 28th. The stock was sold at an average price of $65.51, for a total value of $327,550.00. Following the completion of the transaction, the director owned 34,313 shares of the company’s stock, valued at $2,247,844.63. This represents a 12.72% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.76% of the company’s stock.

Institutional Investors Weigh In On BorgWarner

Several large investors have recently bought and sold shares of BWA. BlackRock Inc. bought a new position in BorgWarner during the 2nd quarter valued at about $1,678,187,000. William Blair Investment Management LLC bought a new stake in shares of BorgWarner in the second quarter worth approximately $251,305,000. Bank of America Corp DE bought a new stake in shares of BorgWarner in the second quarter worth approximately $250,618,000. Swedbank AB raised its holdings in shares of BorgWarner by 5.4% during the first quarter. Swedbank AB now owns 2,933,151 shares of the auto parts company’s stock valued at $159,153,000 after purchasing an additional 150,144 shares during the last quarter. Finally, Bank of New York Mellon Corp purchased a new position in shares of BorgWarner during the second quarter valued at approximately $112,292,000. 95.67% of the stock is currently owned by institutional investors.

BorgWarner Company Profile

BorgWarner Inc (NYSE:BWA) is a global automotive technology company that develops and manufactures propulsion and mobility systems for vehicle manufacturers and commercial vehicle customers. The company serves both internal-combustion and electrified vehicle markets, with a portfolio focused on improving vehicle efficiency, performance, emissions, and electrification.

Its products and technologies include turbochargers, emissions and thermal-management systems, transmission components, friction products, battery systems, battery charging equipment, power electronics, electric motors, and other electric-drive components.