BorgWarner (NYSE:BWA) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded BorgWarner from “buy” to “hold,” although the broader analyst consensus remains “Moderate Buy,” with nine buy ratings and six hold ratings and an average price target of $78.86.
• BorgWarner reported quarterly EPS of $1.42, beating estimates of $1.28, while revenue reached $3.65 billion versus the $3.58 billion consensus. 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, while recent insider activity included a director purchase and another director sale.

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.

BWA has been the subject of a number of other reports. Wells Fargo & Company increased their target price on shares of BorgWarner from $68.00 to $83.00 and gave the company an "overweight" rating in a research report on Tuesday, June 2nd. Wolfe Research restated an "outperform" rating and set a $95.00 price target on shares of BorgWarner in a research report on Wednesday, June 3rd. UBS Group upgraded BorgWarner from a "neutral" rating to a "buy" rating and lifted their price target for the stock from $61.00 to $95.00 in a report on Wednesday, June 10th. Deutsche Bank Aktiengesellschaft set a $80.00 price target on shares of BorgWarner in a research note on Thursday, August 6th. Finally, Barclays upped their price objective on BorgWarner from $83.00 to $85.00 and gave the company an "overweight" rating in a report on Monday, August 10th. Nine equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat.com, BorgWarner has an average rating of "Moderate Buy" and an average target price of $78.86.

BorgWarner Price Performance

NYSE BWA opened at $66.69 on Friday. The firm's fifty day simple moving average is $65.30 and its two-hundred day simple moving average is $62.42. The firm has a market capitalization of $13.58 billion, a P/E ratio of 33.35, a P/E/G ratio of 1.18 and a beta of 1.12. 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 has a 12-month low of $40.50 and a 12-month high of $78.82.

BorgWarner (NYSE:BWA - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The auto parts company reported $1.42 earnings per share for the quarter, topping analysts' consensus estimates of $1.28 by $0.14. The firm had revenue of $3.65 billion during 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 quarterly revenue was up .3% on a year-over-year basis. During the same quarter last year, the firm earned $1.21 EPS. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. Analysts forecast that BorgWarner will post 5.2 EPS for the current fiscal year.

BorgWarner announced that its board has authorized a stock buyback plan on Wednesday, August 5th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the auto parts company to repurchase up to 7.7% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's board believes its shares are undervalued.

Insider Activity at BorgWarner

In other news, Director Rajesh Kalathur purchased 7,407 shares of the company's stock in a transaction that occurred on Wednesday, August 19th. The shares were purchased at an average price of $67.59 per share, for a total transaction of $500,639.13. Following the purchase, the director directly owned 7,407 shares of the company's stock, valued at $500,639.13. This represents a ∞ increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Michael Hanley sold 5,000 shares of the 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 sale, the director owned 34,313 shares of the company's stock, valued at $2,247,844.63. This trade represents a 12.72% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 0.76% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. Acadian Asset Management LLC increased its stake in shares of BorgWarner by 23.7% during the first quarter. Acadian Asset Management LLC now owns 8,979 shares of the auto parts company's stock worth $257,000 after acquiring an additional 1,723 shares during the period. Sivia Capital Partners LLC purchased a new stake in shares of BorgWarner in the second quarter valued at approximately $339,000. EverSource Wealth Advisors LLC grew its holdings in BorgWarner by 400.5% during the second quarter. EverSource Wealth Advisors LLC now owns 5,531 shares of the auto parts company's stock worth $185,000 after acquiring an additional 4,426 shares during the period. Marshall Wace LLP purchased a new position in BorgWarner in the second quarter worth $247,000. Finally, Cerity Partners LLC raised its position in BorgWarner by 30.2% in the second quarter. Cerity Partners LLC now owns 143,841 shares of the auto parts company's stock worth $4,816,000 after acquiring an additional 33,362 shares in the last quarter. 95.67% of the stock is currently owned by hedge funds and other institutional investors.

BorgWarner Company Profile

BorgWarner Inc NYSE: BWA is a global automotive technology company headquartered in Auburn Hills, Michigan. The company develops and supplies propulsion and drivetrain systems for passenger vehicles, commercial vehicles and off-highway applications, serving automakers and other transportation manufacturers worldwide.

Its product portfolio includes turbochargers, transmission systems, dual-clutch modules, four-wheel-drive systems, emissions technologies, and components for hybrid and internal-combustion vehicles.

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