BorgWarner (NYSE:BWA) Rating Increased to Moderate Buy at Royal Bank Of Canada

Key Points

• Royal Bank of Canada upgraded BorgWarner to “Moderate Buy,” joining a generally positive analyst outlook. Ten analysts rate the stock a Buy and six rate it Hold, with a consensus price target of $76.67.
• BorgWarner exceeded quarterly expectations, reporting EPS of $1.42 versus the $1.28 consensus and revenue of $3.65 billion. The company issued fiscal 2026 EPS guidance of $5.05–$5.30.
• The board authorized a $1 billion share repurchase program, allowing buybacks of up to 7.7% of outstanding shares; institutional investors own 95.67% of the stock.

BorgWarner (NYSE:BWA - Get Free Report) was upgraded by Royal Bank Of Canada to a "moderate buy" rating in a report released on Monday, Zacks reports.

BWA has been the subject of a number of other reports. Weiss Ratings upgraded shares of BorgWarner from a "hold (c)" rating to a "hold (c+)" rating in a research report on Monday, June 29th. Sanford C. Bernstein upgraded shares of BorgWarner to a "buy" rating in a research report on Wednesday, June 10th. The Goldman Sachs Group reaffirmed a "buy" rating and set a $84.00 target price on shares of BorgWarner in a research note on Thursday, June 11th. Morgan Stanley upped their price target on shares of BorgWarner from $67.00 to $71.00 and gave the stock an "equal weight" rating in a report on Thursday, August 6th. Finally, Wall Street Zen upgraded BorgWarner from a "hold" rating to a "buy" rating in a research note on Saturday, June 27th. Ten investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $76.67.

BorgWarner Stock Performance

BWA opened at $63.68 on Monday. The company has a debt-to-equity ratio of 0.67, a current ratio of 2.13 and a quick ratio of 1.76. The business has a fifty day simple moving average of $65.29 and a 200 day simple moving average of $62.19. BorgWarner has a 1 year low of $40.50 and a 1 year high of $78.82. The company has a market capitalization of $12.97 billion, a PE ratio of 31.84, a price-to-earnings-growth ratio of 1.15 and a beta of 1.12.

BorgWarner (NYSE:BWA - Get Free Report) last announced its earnings results on Wednesday, August 5th. The auto parts company reported $1.42 earnings per share (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 analyst estimates of $3.58 billion. BorgWarner had a net margin of 2.89% and a return on equity of 19.10%. The business's revenue was up .3% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.21 EPS. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. Research analysts expect that BorgWarner will post 5.2 EPS for the current year.

BorgWarner declared that its board has initiated a stock buyback 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 shares through open market purchases. Shares buyback plans are typically a sign that the company's board believes its shares are undervalued.

Insider Transactions at BorgWarner

In other news, CAO Amy B. Kulikowski sold 2,900 shares of BorgWarner stock in a transaction 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 transaction, the chief accounting officer owned 9,725 shares in the company, valued at approximately $667,135. The trade was a 22.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Michael S. 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 transaction of $327,550.00. Following the completion of the sale, the director directly owned 34,313 shares in the company, valued at approximately $2,247,844.63. This represents a 12.72% decrease in their position. The SEC filing for this sale provides additional information. 0.76% of the stock is owned by company insiders.

Institutional Investors Weigh In On BorgWarner

Several institutional investors and hedge funds have recently made changes to their positions in BWA. Clearstead Trust LLC acquired a new position in shares of BorgWarner in the second quarter worth approximately $28,000. Ceredex Value Advisors LLC acquired a new stake in BorgWarner during the 2nd quarter valued at approximately $40,000. Fiduciary Financial Advisors bought a new position in BorgWarner during the 2nd quarter worth approximately $49,000. Prosperity Bancshares Inc bought a new position in BorgWarner during the 4th quarter worth approximately $37,000. Finally, Jones Financial Companies Lllp acquired a new position in shares of BorgWarner in the 2nd quarter worth approximately $57,000. Institutional investors and hedge funds own 95.67% of the company's stock.

About BorgWarner

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.

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