BorgWarner Inc. (NYSE:BWA) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• BorgWarner has a consensus analyst rating of “Moderate Buy”, with 9 buy ratings and 6 hold ratings across 15 research firms. The average 12-month price target is about $74.57.
• Recent analyst actions were generally positive, including price target increases from Morgan Stanley and JPMorgan, plus upgrades from Wall Street Zen and an outperform rating from Wolfe Research.
• Insiders have sold shares recently, including CEO Joseph F. Fadool and VP Stefan Demmerle, while the stock also slipped 2.2% to $62.61 in Friday trading.

Shares of BorgWarner Inc. (NYSE:BWA - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the fifteen research firms that are presently covering the company, Marketbeat.com reports. Six investment analysts have rated the stock with a hold recommendation and nine have issued a buy recommendation on the company. The average 12 month price objective among brokerages that have issued ratings on the stock in the last year is $74.5714.

Several research analysts recently commented on the company. Morgan Stanley boosted their target price on BorgWarner from $60.00 to $67.00 and gave the stock an "equal weight" rating in a research note on Wednesday, May 27th. Wall Street Zen raised shares of BorgWarner from a "hold" rating to a "buy" rating in a research report on Saturday, June 27th. Deutsche Bank Aktiengesellschaft set a $81.00 price target on BorgWarner in a research report on Tuesday, April 21st. JPMorgan Chase & Co. lifted their price objective on shares of BorgWarner from $73.00 to $75.00 and gave the company an "overweight" rating in a research note on Thursday, May 14th. Finally, Wolfe Research reissued an "outperform" rating and issued a $95.00 target price on shares of BorgWarner in a report on Wednesday, June 3rd.

Insider Activity

In related news, CEO Joseph F. Fadool sold 29,000 shares of the stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of $67.31, for a total transaction of $1,951,990.00. Following the completion of the transaction, the chief executive officer directly owned 405,964 shares of the company's stock, valued at $27,325,436.84. This represents a 6.67% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, VP Stefan Demmerle sold 20,000 shares of the firm's stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $59.26, for a total transaction of $1,185,200.00. Following the completion of the sale, the vice president owned 213,746 shares of the company's stock, valued at approximately $12,666,587.96. The trade was a 8.56% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 67,500 shares of company stock valued at $4,310,115. 0.76% of the stock is owned by insiders.

Institutional Trading of BorgWarner

Several hedge funds have recently modified their holdings of the business. Prosperity Bancshares Inc purchased a new stake in shares of BorgWarner in the fourth quarter valued at approximately $37,000. Sound Income Strategies LLC raised its position in BorgWarner by 9,888.9% in the fourth quarter. Sound Income Strategies LLC now owns 899 shares of the auto parts company's stock worth $42,000 after acquiring an additional 890 shares in the last quarter. Torren Management LLC acquired a new stake in BorgWarner in the fourth quarter valued at $48,000. Olistico Wealth LLC acquired a new stake in BorgWarner in the fourth quarter valued at $50,000. Finally, Cedar Mountain Advisors LLC purchased a new stake in shares of BorgWarner during the 1st quarter worth $55,000. 95.67% of the stock is owned by institutional investors and hedge funds.

BorgWarner Trading Down 2.2%

NYSE BWA opened at $62.61 on Friday. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.75 and a current ratio of 2.13. The firm has a market cap of $12.84 billion, a price-to-earnings ratio of 37.05, a PEG ratio of 1.23 and a beta of 1.09. The firm has a 50 day simple moving average of $68.04 and a 200-day simple moving average of $58.33. BorgWarner has a one year low of $34.27 and a one year high of $78.82.

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

BorgWarner Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Monday, June 1st were issued a $0.17 dividend. The ex-dividend date of this dividend was Monday, June 1st. This represents a $0.68 annualized dividend and a dividend yield of 1.1%. BorgWarner's payout ratio is presently 40.24%.

About BorgWarner

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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