BorgWarner (NYSE:BWA) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded BorgWarner from “hold” to “buy,” while broader analyst coverage remains favorable with a consensus “Moderate Buy” rating and an average price target of $78.57.
• BorgWarner’s latest quarterly results exceeded expectations, with earnings of $1.42 per share versus the $1.28 consensus estimate and revenue of $3.65 billion. The company projects fiscal 2026 EPS 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 approximately 95.67% of the stock.

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

Other research analysts have also issued reports about the company. Weiss Ratings restated a "hold (c+)" rating on shares of BorgWarner in a research report on Friday, September 25th. UBS Group dropped their price objective on BorgWarner from $95.00 to $91.00 and set a "buy" rating for the company in a report on Wednesday. Royal Bank Of Canada began coverage on BorgWarner in a research note on Monday, August 31st. They issued an "outperform" rating and a $87.00 target price on the stock. TD Cowen raised their target price on BorgWarner from $67.00 to $68.00 and gave the stock a "hold" rating in a report on Thursday, August 6th. Finally, Deutsche Bank Aktiengesellschaft set a $80.00 price target on BorgWarner in a research note on Thursday, August 6th. Nine equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $78.57.

BorgWarner Stock Down 0.5%

Shares of NYSE:BWA opened at $61.43 on Friday. BorgWarner has a one year low of $40.50 and a one year high of $78.82. The company has a 50 day moving average of $64.44 and a 200-day moving average of $63.47. 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 stock has a market cap of $12.51 billion, a price-to-earnings ratio of 30.72, a P/E/G ratio of 1.11 and a beta of 1.16.

BorgWarner (NYSE:BWA - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The auto parts company reported $1.42 earnings per share for the quarter, beating the consensus estimate of $1.28 by $0.14. BorgWarner had a net margin of 2.89% and a return on equity of 19.10%. The business had revenue of $3.65 billion for the quarter, compared to analyst estimates of $3.58 billion. During the same period in the prior year, the business posted $1.21 earnings per share. BorgWarner's revenue was up .3% compared to the same quarter last year. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. On average, sell-side analysts forecast that BorgWarner will post 5.20 earnings per share for the current year.

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

Insiders Place Their Bets

In related news, Director Rajesh Kalathur purchased 7,407 shares of the business's stock in a transaction on Wednesday, August 19th. The shares were purchased at an average price of $67.59 per share, with a total value of $500,639.13. Following the completion of the purchase, the director owned 7,407 shares in the company, valued at $500,639.13. This represents a ∞ increase in their position. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CAO Amy Kulikowski sold 2,900 shares of the company's stock in a transaction that occurred 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 completion of the transaction, the chief accounting officer owned 9,725 shares of the company's stock, valued at $667,135. This trade represents a 22.97% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.76% of the company's stock.

Hedge Funds Weigh In On BorgWarner

A number of large investors have recently added to or reduced their stakes in BWA. Clearstead Trust LLC bought a new position in shares of BorgWarner during the second quarter worth about $28,000. Ceredex Value Advisors LLC bought a new stake in shares of BorgWarner in the second quarter worth $40,000. Fiduciary Financial Advisors acquired a new position in BorgWarner during the second quarter worth $49,000. Cedar Mountain Advisors LLC bought a new position in BorgWarner in the first quarter valued at $55,000. Finally, Jones Financial Companies Lllp bought a new position in BorgWarner in the second quarter valued at $57,000. Institutional investors own 95.67% of the company's stock.

About BorgWarner

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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