BorgWarner (NYSE:BWA) Stock Rating Cut to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded BorgWarner from “buy” to “hold,” although broader analyst sentiment remains “Moderate Buy,” with 10 Buy ratings and four Holds and a consensus price target of $79.
• BorgWarner shares opened at $54.95, down 0.9%, well below their 52-week high of $78.82. The company recently exceeded quarterly earnings and revenue expectations and expects fiscal 2026 EPS of $5.05–$5.30.
• The board authorized a $1 billion share-repurchase program, covering up to 7.7% of outstanding shares. Institutional investors own 95.67% of the company, while a director recently purchased approximately $501,000 of stock.

BorgWarner (NYSE:BWA - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

Several other brokerages have also weighed in on BWA. UBS Group cut their price target on BorgWarner from $95.00 to $91.00 and set a "buy" rating for the company in a research note on Wednesday, October 7th. Morgan Stanley increased their price target on shares of BorgWarner from $67.00 to $71.00 and gave the company an "equal weight" rating in a research note on Thursday, August 6th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of BorgWarner in a report on Friday, September 25th. Robert W. Baird set a $79.00 price objective on BorgWarner in a research note on Thursday, August 6th. Finally, Bank of America raised shares of BorgWarner from a "neutral" rating to a "buy" rating and raised their price target for the stock from $78.00 to $85.00 in a research note on Thursday, October 15th. Ten analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $79.00.

BorgWarner Trading Down 0.9%

NYSE BWA opened at $54.95 on Friday. The firm has a market capitalization of $11.19 billion, a PE ratio of 27.48, a P/E/G ratio of 0.81 and a beta of 1.16. The company has a quick ratio of 1.76, a current ratio of 2.13 and a debt-to-equity ratio of 0.67. BorgWarner has a twelve month low of $40.73 and a twelve month high of $78.82. The stock's 50 day moving average is $62.61 and its 200 day moving average is $63.74.

BorgWarner (NYSE:BWA - Get Free Report) last announced its quarterly earnings data 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. The firm had revenue of $3.65 billion for the quarter, compared to the consensus estimate of $3.58 billion. BorgWarner had a net margin of 2.89% and a return on equity of 19.10%. The company's revenue was up .3% on a year-over-year basis. During the same period last year, the firm earned $1.21 EPS. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. Research analysts forecast that BorgWarner will post 5.19 earnings per share for the current fiscal year.

BorgWarner announced that its board has authorized a share repurchase program on Wednesday, August 5th that permits the company to buy back $1.00 billion in shares. This buyback authorization permits the auto parts company to buy up to 7.7% of its shares through open market purchases. Share buyback programs are typically a sign that the company's leadership believes its shares are undervalued.

Insider Buying and Selling at BorgWarner

In related news, Director Rajesh Kalathur bought 7,407 shares of the firm's stock in a transaction dated Wednesday, August 19th. The stock was bought at an average cost of $67.59 per share, for a total transaction of $500,639.13. Following the transaction, the director owned 7,407 shares of the company's stock, valued at $500,639.13. This represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Amy B. Kulikowski sold 2,900 shares of BorgWarner stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $68.60, for a total value of $198,940.00. Following the transaction, the chief accounting officer owned 9,725 shares in the company, valued at $667,135. This trade represents a 22.97% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 0.76% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in BWA. Clearstead Trust LLC bought a new position in shares of BorgWarner in the 2nd quarter valued at $28,000. Ceredex Value Advisors LLC acquired a new position in shares of BorgWarner during the second quarter worth approximately $40,000. Fiduciary Financial Advisors acquired a new stake in shares of BorgWarner in the 2nd quarter worth about $49,000. Jones Financial Companies Lllp bought a new stake in shares of BorgWarner in the 2nd quarter worth $57,000. Finally, Grove Bank & Trust increased its position in shares of BorgWarner by 4,304.3% during the 2nd quarter. Grove Bank & Trust now owns 1,013 shares of the auto parts company's stock valued at $67,000 after purchasing an additional 990 shares during the last quarter. 95.67% of the stock is owned by institutional investors and hedge funds.

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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