BorgWarner (NYSE:BWA) Stock Gets Price Target Reduction from TD Cowen

Key Points

• TD Cowen lowered BorgWarner’s price target from $68 to $67 while maintaining a “hold” rating, though the target still implied roughly 31% upside from the prior close. Analysts overall remain moderately bullish, with a consensus target of $79.33.
• BorgWarner shares fell 4.2% to $51.04, trading well below their 50-day and 200-day moving averages. The stock has a 52-week range of $40.73 to $78.82.
• The company beat quarterly EPS expectations at $1.39 versus $1.25, but revenue declined 2.9% year over year to $3.49 billion amid lower production volumes. BorgWarner also has authorization for a $1 billion share-repurchase program, covering up to 7.7% of outstanding shares.

BorgWarner (NYSE:BWA - Get Free Report) had its price objective decreased by equities researchers at TD Cowen from $68.00 to $67.00 in a research report issued on Friday, Benzinga reports. The firm currently has a "hold" rating on the auto parts company's stock. TD Cowen's price target suggests a potential upside of 31.27% from the company's previous close.

BWA has been the topic of several other research reports. Royal Bank Of Canada cut their price target on BorgWarner from $87.00 to $75.00 and set an "outperform" rating on the stock in a research note on Friday. JPMorgan Chase & Co. lifted 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. Bank of America upgraded BorgWarner from a "neutral" rating to a "buy" rating and lifted their price objective for the stock from $78.00 to $85.00 in a report on Thursday, October 15th. Barclays upped their target price on BorgWarner from $83.00 to $85.00 and gave the company an "overweight" rating in a research report on Monday, August 10th. Finally, Weiss Ratings reiterated a "hold (c+)" rating on shares of BorgWarner in a research note on Friday, September 25th. Eleven analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $79.33.

BorgWarner Trading Down 4.2%

Shares of BorgWarner stock traded down $2.26 during trading hours on Friday, reaching $51.04. 1,973,484 shares of the company's stock were exchanged, compared to its average volume of 2,749,751. The firm has a market capitalization of $10.39 billion, a price-to-earnings ratio of 25.52, a price-to-earnings-growth ratio of 0.82 and a beta of 1.16. The company has a fifty day moving average of $61.57 and a 200-day moving average of $60.52. BorgWarner has a 52-week low of $40.73 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 - Get Free Report) last posted its quarterly earnings results on Thursday, October 29th. The auto parts company reported $1.39 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.25 by $0.14. BorgWarner had a return on equity of 19.10% and a net margin of 2.89%. The firm had revenue of $3.49 billion during the quarter, compared to the consensus estimate of $3.50 billion. During the same quarter in the previous year, the business earned $1.24 earnings per share. The firm's quarterly revenue was down 2.9% compared to the same quarter last year. Sell-side analysts forecast that BorgWarner will post 5.19 EPS for the current fiscal year.

BorgWarner declared that its board has approved a share repurchase program on Wednesday, August 5th that allows the company to repurchase $1 billion in outstanding shares. This repurchase authorization allows the auto parts company to buy up to 7.7% of its shares through open market purchases. Share repurchase programs are usually an indication that the company's leadership believes its shares are undervalued.

Insiders Place Their Bets

In other BorgWarner news, CAO Amy B. Kulikowski sold 2,900 shares of the 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 sale, the chief accounting officer directly owned 9,725 shares of the company's stock, valued at $667,135. This trade represents a 22.97% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Michael S. Hanley sold 5,000 shares of the company's stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $65.51, for a total transaction of $327,550.00. Following 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 disclosure for this sale is available in the SEC filing. 0.76% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Clearstead Trust LLC acquired a new stake in BorgWarner in the 2nd quarter valued at approximately $28,000. Ceredex Value Advisors LLC bought a new position in shares of BorgWarner in the second quarter worth $40,000. Fiduciary Financial Advisors bought a new position in shares of BorgWarner in the second quarter worth $49,000. William Mack & Associates Inc. acquired a new position in shares of BorgWarner during the third quarter valued at $46,000. Finally, Jones Financial Companies Lllp acquired a new position in shares of BorgWarner during the second quarter valued at $57,000. Institutional investors own 95.67% of the company's stock.

More BorgWarner News

Here are the key news stories impacting BorgWarner this week:

• Positive Sentiment: Adjusted EPS exceeded expectations. BorgWarner reported third-quarter adjusted earnings of $1.39 per share, ahead of consensus estimates near $1.24-$1.25 and up from $1.24 a year earlier. Cost reductions, share repurchases and improved profitability supported the earnings performance. BorgWarner Reports Strong Third Quarter 2026 Results
• Positive Sentiment: Electrification and turbocharger wins strengthen the long-term growth story. BorgWarner announced nine business awards, including high-voltage inverter contracts, multiple eMotor awards in China and three turbocharger awards with a global powertrain manufacturer. A silicon-carbide supply agreement with Wolfspeed also supports the company’s inverter strategy. High-Voltage Inverter Supply Agreement
• Neutral Sentiment: Analyst sentiment remains constructive but less bullish. Royal Bank of Canada lowered its price target from $87 to $75 while maintaining an “outperform” rating, implying substantial potential appreciation from recent trading levels. The reduction reflects more cautious near-term expectations rather than a change to its positive rating. RBC Lowers BorgWarner Price Target
• Negative Sentiment: Revenue and volumes remain the key weaknesses. Third-quarter revenue of $3.49 billion was slightly below estimates and declined 2.9% year over year, primarily reflecting lower production volumes. Reports that BorgWarner reduced parts of its 2026 outlook are likely offsetting the earnings beat and raising concerns about demand and auto-sector conditions. BorgWarner Q3 Results and Revised Outlook

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.

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