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

Key Points

• BorgWarner Inc. has received an average analyst rating of "Moderate Buy", with six analysts recommending a hold and ten recommending a buy.
• The company recently reported earnings of $1.21 per share, exceeding analyst expectations and indicating a year-over-year revenue increase of 1.0%.
• BorgWarner has authorized a $1.00 billion share buyback program and increased its quarterly dividend from $0.11 to $0.17 per share, reflecting confidence in its stock value.

Shares of BorgWarner Inc. (NYSE:BWA - Get Free Report) have been given a consensus rating of "Moderate Buy" by the sixteen brokerages that are currently covering the firm, Marketbeat reports. Six analysts have rated the stock with a hold recommendation and ten have issued a buy recommendation on the company. The average 1 year price target among brokers that have issued ratings on the stock in the last year is $39.6429.

BWA has been the subject of several recent analyst reports. Robert W. Baird raised their price objective on shares of BorgWarner from $32.00 to $39.00 and gave the stock a "neutral" rating in a research report on Friday, July 11th. Bank of America raised their price objective on BorgWarner from $35.00 to $41.00 and gave the company a "buy" rating in a research note on Monday, June 16th. UBS Group raised their price objective on BorgWarner from $35.00 to $38.00 and gave the company a "neutral" rating in a research note on Monday, July 14th. Morgan Stanley raised their price objective on BorgWarner from $40.00 to $42.00 and gave the company an "overweight" rating in a research note on Tuesday, August 12th. Finally, Evercore ISI raised their price objective on BorgWarner from $38.00 to $42.00 and gave the company an "outperform" rating in a research note on Monday, August 4th.

Insider Activity

In related news, VP Stefan Demmerle sold 5,000 shares of BorgWarner stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $40.50, for a total value of $202,500.00. Following the completion of the sale, the vice president owned 229,040 shares of the company's stock, valued at approximately $9,276,120. This trade represents a 2.14% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, VP Isabelle Mckenzie sold 2,500 shares of BorgWarner stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $40.01, for a total value of $100,025.00. Following the completion of the sale, the vice president directly owned 55,945 shares of the company's stock, valued at approximately $2,238,359.45. This trade represents a 4.28% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 22,500 shares of company stock valued at $892,175. 0.63% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Global X Japan Co. Ltd. grew its holdings in BorgWarner by 133.4% during the 1st quarter. Global X Japan Co. Ltd. now owns 915 shares of the auto parts company's stock valued at $26,000 after buying an additional 523 shares in the last quarter. Caitong International Asset Management Co. Ltd grew its holdings in BorgWarner by 1,133.3% during the 2nd quarter. Caitong International Asset Management Co. Ltd now owns 777 shares of the auto parts company's stock valued at $26,000 after buying an additional 714 shares in the last quarter. Assetmark Inc. grew its holdings in BorgWarner by 81.8% during the 2nd quarter. Assetmark Inc. now owns 809 shares of the auto parts company's stock valued at $27,000 after buying an additional 364 shares in the last quarter. Addison Advisors LLC grew its holdings in BorgWarner by 1,647.8% during the 2nd quarter. Addison Advisors LLC now owns 804 shares of the auto parts company's stock valued at $27,000 after buying an additional 758 shares in the last quarter. Finally, Manchester Capital Management LLC purchased a new position in shares of BorgWarner during the first quarter worth about $30,000. Hedge funds and other institutional investors own 95.67% of the company's stock.

BorgWarner Price Performance

Shares of BWA stock traded down $0.17 on Tuesday, reaching $42.75. The company had a trading volume of 2,250,343 shares, compared to its average volume of 2,330,855. The stock has a market capitalization of $9.25 billion, a PE ratio of 45.47, a price-to-earnings-growth ratio of 1.29 and a beta of 1.09. The company has a quick ratio of 1.66, a current ratio of 2.02 and a debt-to-equity ratio of 0.64. BorgWarner has a one year low of $24.40 and a one year high of $43.83. The business's 50-day moving average is $37.47 and its 200 day moving average is $32.56.

BorgWarner (NYSE:BWA - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The auto parts company reported $1.21 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.06 by $0.15. The business had revenue of $3.64 billion during the quarter, compared to analyst estimates of $3.56 billion. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. The firm's quarterly revenue was up 1.0% on a year-over-year basis. During the same quarter last year, the business earned $1.19 EPS. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. Equities research analysts forecast that BorgWarner will post 4.28 EPS for the current fiscal year.

BorgWarner announced that its board has approved a share buyback program on Thursday, July 31st that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the auto parts company to purchase up to 13.2% of its stock through open market purchases. Stock buyback programs are generally a sign that the company's board of directors believes its stock is undervalued.

BorgWarner Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd will be paid a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date is Tuesday, September 2nd. This is a positive change from BorgWarner's previous quarterly dividend of $0.11. BorgWarner's dividend payout ratio (DPR) is presently 46.81%.

BorgWarner Company Profile

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.