BorgWarner Inc. (NYSE:BWA) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• BorgWarner has an average analyst rating of “Moderate Buy”, with 7 buy ratings and 7 hold ratings among 14 analysts. The average 12-month price target is about $68.14.
• The company reported better-than-expected first-quarter earnings, posting EPS of $1.24 versus the $1.16 estimate and revenue of $3.53 billion versus $3.50 billion expected. BorgWarner also raised its FY 2026 guidance to 5.00–5.20 EPS.
• BorgWarner declared a quarterly dividend of $0.17 per share, payable June 15, which works out to a 1.0% yield. The article also noted recent insider selling by the CEO and a vice president.

Shares of BorgWarner Inc. (NYSE:BWA - Get Free Report) have earned an average recommendation of "Moderate Buy" from the fourteen analysts that are presently covering the company, MarketBeat.com reports. Seven analysts have rated the stock with a hold rating and seven have given a buy rating to the company. The average 12-month price objective among brokers that have issued a report on the stock in the last year is $68.1429.

BWA has been the topic of several recent analyst reports. JPMorgan Chase & Co. boosted their target price on shares of BorgWarner from $73.00 to $75.00 and gave the company an "overweight" rating in a report on Thursday, May 14th. Wall Street Zen lowered shares of BorgWarner from a "strong-buy" rating to a "buy" rating in a report on Saturday, May 9th. Evercore reaffirmed an "outperform" rating and issued a $75.00 price target on shares of BorgWarner in a research note on Tuesday, February 17th. Barclays lifted their price target on shares of BorgWarner from $70.00 to $75.00 and gave the company an "overweight" rating in a research note on Thursday, May 7th. Finally, The Goldman Sachs Group lifted their price target on shares of BorgWarner from $54.00 to $78.00 and gave the company a "buy" rating in a research note on Thursday, February 12th.

BorgWarner Price Performance

BWA stock opened at $70.81 on Thursday. The firm has a market cap of $14.52 billion, a price-to-earnings ratio of 41.90, a PEG ratio of 1.31 and a beta of 1.00. The company has a quick ratio of 1.75, a current ratio of 2.13 and a debt-to-equity ratio of 0.69. BorgWarner has a 12-month low of $31.83 and a 12-month high of $71.57. The company's fifty day simple moving average is $57.38 and its 200 day simple moving average is $51.92.

BorgWarner (NYSE:BWA - Get Free Report) last released its earnings results on Wednesday, May 6th. The auto parts company reported $1.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.16 by $0.08. The business had revenue of $3.53 billion for the quarter, compared to analyst estimates of $3.50 billion. BorgWarner had a net margin of 2.53% and a return on equity of 18.36%. BorgWarner's revenue for the quarter was up .5% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.11 earnings per share. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. On average, analysts expect that BorgWarner will post 5.16 earnings per share for the current year.

BorgWarner Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Monday, June 1st will be paid a $0.17 dividend. This represents a $0.68 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend is Monday, June 1st. BorgWarner's payout ratio is 40.24%.

Insider Transactions at BorgWarner

In other BorgWarner news, VP Stefan Demmerle sold 5,000 shares of BorgWarner stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $65.00, for a total value of $325,000.00. Following the completion of the sale, the vice president directly owned 203,746 shares of the company's stock, valued at approximately $13,243,490. The trade was a 2.40% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Joseph F. Fadool sold 29,000 shares of the business's stock in a transaction dated Wednesday, May 13th. The stock was sold at an average price of $67.31, for a total transaction of $1,951,990.00. Following the sale, the chief executive officer directly owned 405,964 shares of the company's stock, valued at approximately $27,325,436.84. The trade was a 6.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 96,033 shares of company stock valued at $5,792,558. 0.76% of the stock is owned by insiders.

Institutional Investors Weigh In On BorgWarner

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Arete Wealth Advisors LLC bought a new stake in shares of BorgWarner during the first quarter worth about $1,039,000. Ariadne Wealth Management LP increased its position in shares of BorgWarner by 3.8% during the first quarter. Ariadne Wealth Management LP now owns 5,958 shares of the auto parts company's stock worth $323,000 after acquiring an additional 218 shares in the last quarter. Bank of America Corp DE increased its position in shares of BorgWarner by 1.9% during the first quarter. Bank of America Corp DE now owns 3,774,056 shares of the auto parts company's stock worth $204,780,000 after acquiring an additional 68,802 shares in the last quarter. Kentucky Retirement Systems bought a new stake in shares of BorgWarner during the first quarter worth about $1,050,000. Finally, Bull Harbor Capital LLC bought a new stake in shares of BorgWarner during the first quarter worth about $1,056,000. 95.67% of the stock is owned by institutional investors.

BorgWarner Company Profile

BorgWarner Inc is a global automotive supplier specializing in propulsion and drivetrain solutions for combustion, hybrid and electric vehicles. The company's product portfolio includes turbochargers, thermal management systems, transmission components, e-Propulsion modules and advanced fuel-efficiency technologies. BorgWarner serves original equipment manufacturers (OEMs) across passenger cars, light trucks and commercial vehicles, supporting both legacy internal-combustion engines and emerging electrification trends.

Founded in 1928 through the merger of several driveline companies, BorgWarner has grown through strategic acquisitions and continuous investment in research and development.

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