BorgWarner (NYSE:BWA) Upgraded at Bank of America

Key Points

• Bank of America upgraded BorgWarner to “buy” from “neutral” and set an $85 price target, implying approximately 45.7% upside from the reported $58.33 share price.
• Analyst sentiment is broadly positive: ten analysts rate the stock “buy” and four rate it “hold,” producing a consensus “moderate buy” rating and an average price target of $79.
• BorgWarner exceeded quarterly earnings and revenue expectations and authorized a $1 billion share buyback, allowing repurchases of up to 7.7% of outstanding shares.

BorgWarner (NYSE:BWA - Get Free Report) was upgraded by research analysts at Bank of America from a "neutral" rating to a "buy" rating in a research report issued to clients and investors on Thursday, Briefing.com reports. The brokerage currently has a $85.00 price objective on the auto parts company's stock. Bank of America's price target suggests a potential upside of 45.72% from the company's current price.

Several other analysts also recently commented on the company. Robert W. Baird set a $79.00 target price on BorgWarner in a research note on Thursday, August 6th. JPMorgan Chase & Co. lifted their target price on BorgWarner from $75.00 to $85.00 and gave the stock an "overweight" rating in a report on Monday, August 10th. UBS Group decreased 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. Deutsche Bank Aktiengesellschaft set a $80.00 price target on BorgWarner in a report on Thursday, August 6th. Finally, Wall Street Zen raised BorgWarner from a "hold" rating to a "buy" rating in a research report on Saturday, October 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, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $79.00.

BorgWarner Stock Down 3.7%

NYSE:BWA opened at $58.33 on Thursday. The company has a debt-to-equity ratio of 0.67, a quick ratio of 1.76 and a current ratio of 2.13. The firm has a market cap of $11.88 billion, a P/E ratio of 29.17, a P/E/G ratio of 1.09 and a beta of 1.16. BorgWarner has a fifty-two week low of $40.73 and a fifty-two week high of $78.82. The firm has a 50-day simple moving average of $64.16 and a two-hundred day simple moving average of $63.63.

BorgWarner (NYSE:BWA - Get Free Report) last issued its earnings results on Wednesday, August 5th. The auto parts company reported $1.42 earnings per share (EPS) for the quarter, topping 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 business's revenue was up .3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.21 earnings per share. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. Analysts predict that BorgWarner will post 5.20 earnings per share for the current fiscal year.

BorgWarner announced that its Board of Directors has initiated a share buyback program on Wednesday, August 5th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits 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 management believes its stock is undervalued.

Insider Activity

In related news, Director Michael Hanley sold 5,000 shares of BorgWarner stock in a transaction on Friday, August 28th. The shares were 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 in the company, valued at approximately $2,247,844.63. The trade was a 12.72% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Amy Kulikowski sold 2,900 shares of the company's stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $68.60, for a total transaction of $198,940.00. Following the completion of the transaction, the chief accounting officer directly owned 9,725 shares of the company's stock, valued at $667,135. This represents a 22.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.76% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Greenleaf Trust lifted its position in BorgWarner by 5.2% during the second quarter. Greenleaf Trust now owns 3,977 shares of the auto parts company's stock valued at $264,000 after purchasing an additional 196 shares during the last quarter. Fifth Third Wealth Advisors LLC lifted its holdings in shares of BorgWarner by 3.2% in the 1st quarter. Fifth Third Wealth Advisors LLC now owns 7,064 shares of the auto parts company's stock valued at $383,000 after acquiring an additional 216 shares during the last quarter. Ariadne Wealth Management LP lifted its holdings in shares of BorgWarner by 3.8% in the 1st quarter. Ariadne Wealth Management LP now owns 5,958 shares of the auto parts company's stock valued at $323,000 after acquiring an additional 218 shares during the last quarter. NewEdge Advisors LLC lifted its holdings in shares of BorgWarner by 2.2% in the 1st quarter. NewEdge Advisors LLC now owns 10,293 shares of the auto parts company's stock valued at $558,000 after acquiring an additional 220 shares during the last quarter. Finally, Pinnacle Wealth Management Advisory Group LLC increased its stake in BorgWarner by 4.4% during the second quarter. Pinnacle Wealth Management Advisory Group LLC now owns 5,446 shares of the auto parts company's stock worth $362,000 after acquiring an additional 229 shares during the last quarter. Institutional investors own 95.67% of the company's stock.

BorgWarner Company Profile

BorgWarner Inc is a global automotive supplier that develops and manufactures propulsion, drivetrain, thermal-management and emissions technologies. The company serves automakers and commercial-vehicle manufacturers, supplying components and systems for internal-combustion, hybrid and electric vehicles.

Its product portfolio includes turbochargers, transmission systems, all-wheel-drive and four-wheel-drive technologies, clutches, timing systems, battery systems, power electronics, electric motors, thermal-management products and charging-related technologies.

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