BorgWarner Inc. (NYSE:BWA) Given Consensus Rating of "Moderate Buy" by Brokerages

Key Points

• BorgWarner Inc. has received a consensus rating of "Moderate Buy" from eighteen research firms, with an average 12-month target price of $44.64.
• The company recently increased its quarterly dividend from $0.11 to $0.17, reflecting a yield of 1.6% and a payout ratio of 72.34%.
• BorgWarner announced a $1 billion share repurchase plan, indicating confidence in the stock's valuation amid insider sales and significant institutional ownership.

BorgWarner Inc. (NYSE:BWA - Get Free Report) has earned an average recommendation of "Moderate Buy" from the eighteen research firms that are currently covering the stock, MarketBeat reports. Six analysts have rated the stock with a hold recommendation, ten have assigned a buy recommendation and two have assigned a strong buy recommendation to the company. The average 12-month target price among brokers that have updated their coverage on the stock in the last year is $44.6429.

A number of equities research analysts have issued reports on the company. Baird R W upgraded BorgWarner from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, September 3rd. Zacks Research raised shares of BorgWarner from a "hold" rating to a "strong-buy" rating in a research note on Friday, September 12th. Bank of America lowered shares of BorgWarner from a "buy" rating to a "neutral" rating and lifted their price objective for the stock from $41.00 to $46.00 in a research note on Wednesday, September 10th. Barclays raised their target price on shares of BorgWarner from $45.00 to $55.00 and gave the stock an "overweight" rating in a report on Friday. Finally, Wall Street Zen raised shares of BorgWarner from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 12th.

Insiders Place Their Bets

In other news, VP Stefan Demmerle sold 15,000 shares of BorgWarner stock in a transaction on Tuesday, August 12th. The stock was sold at an average price of $39.31, for a total value of $589,650.00. Following the transaction, the vice president directly owned 234,040 shares in the company, valued at approximately $9,200,112.40. This trade represents a 6.02% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Alexis P. Michas sold 8,772 shares of the stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $42.31, for a total value of $371,143.32. Following the completion of the sale, the director owned 78,903 shares of the company's stock, valued at approximately $3,338,385.93. This trade represents a 10.01% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 31,272 shares of company stock worth $1,263,318 in the last three months. Corporate insiders own 0.63% of the company's stock.

Hedge Funds Weigh In On BorgWarner

Several institutional investors and hedge funds have recently modified their holdings of BWA. Farther Finance Advisors LLC increased its stake in shares of BorgWarner by 26.1% during the first quarter. Farther Finance Advisors LLC now owns 1,965 shares of the auto parts company's stock worth $56,000 after purchasing an additional 407 shares in the last quarter. CX Institutional acquired a new stake in shares of BorgWarner during the 1st quarter worth approximately $98,000. Blackston Financial Advisory Group LLC lifted its stake in shares of BorgWarner by 20.3% in the 1st quarter. Blackston Financial Advisory Group LLC now owns 7,705 shares of the auto parts company's stock valued at $221,000 after purchasing an additional 1,301 shares during the last quarter. State of Alaska Department of Revenue lifted its position in BorgWarner by 185.3% in the first quarter. State of Alaska Department of Revenue now owns 148,170 shares of the auto parts company's stock valued at $4,244,000 after buying an additional 96,235 shares during the last quarter. Finally, Global X Japan Co. Ltd. increased its holdings in BorgWarner by 133.4% in the 1st quarter. Global X Japan Co. Ltd. now owns 915 shares of the auto parts company's stock valued at $26,000 after purchasing an additional 523 shares during the last quarter. Institutional investors and hedge funds own 95.67% of the company's stock.

BorgWarner Stock Up 1.3%

BWA opened at $41.75 on Wednesday. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.66 and a current ratio of 2.02. BorgWarner has a fifty-two week low of $24.40 and a fifty-two week high of $44.97. The firm's fifty day moving average is $42.70 and its 200 day moving average is $35.68. The stock has a market cap of $9.03 billion, a price-to-earnings ratio of 44.41, a price-to-earnings-growth ratio of 1.35 and a beta of 1.09.

BorgWarner (NYSE:BWA - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share for the quarter, topping the consensus estimate of $1.06 by $0.15. The business had revenue of $3.64 billion during the quarter, compared to the consensus estimate of $3.56 billion. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%.The firm's revenue for the quarter was up 1.0% compared to the same quarter last year. During the same period in the prior year, the company posted $1.19 EPS. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. On average, sell-side analysts forecast that BorgWarner will post 4.28 earnings per share for the current fiscal year.

BorgWarner Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd were paid a $0.17 dividend. The ex-dividend date was Tuesday, September 2nd. This represents a $0.68 dividend on an annualized basis and a yield of 1.6%. This is an increase from BorgWarner's previous quarterly dividend of $0.11. BorgWarner's payout ratio is currently 72.34%.

BorgWarner announced that its Board of Directors has initiated a share repurchase plan on Thursday, July 31st that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the auto parts company to buy up to 13.2% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's board believes its shares are undervalued.

About BorgWarner

BorgWarner Inc, together with its subsidiaries, provides solutions for combustion, hybrid, and electric vehicles worldwide. It offers turbochargers, eBoosters, eTurbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, battery modules and systems, battery heaters, and battery charging.

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