BorgWarner Inc. (NYSE:BWA) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• BorgWarner has a “Moderate Buy” consensus rating from 15 analysts, with nine buys and six holds. The average 12-month price target is $75.93, above the stock’s reported price of $69.59.
• The company exceeded quarterly expectations, reporting $1.42 in adjusted EPS versus the $1.28 consensus and revenue of $3.65 billion. BorgWarner maintained fiscal 2026 EPS guidance of $5.05–$5.30.
• BorgWarner approved a $1 billion share-repurchase program, alongside a quarterly dividend of $0.17 per share, equivalent to a 1.0% annualized yield.

BorgWarner Inc. (NYSE:BWA - Get Free Report) has been given an average rating of "Moderate Buy" by the fifteen ratings firms that are covering the stock, Marketbeat.com reports. Six analysts have rated the stock with a hold rating and nine have issued a buy rating on the company. The average twelve-month price target among brokerages that have covered the stock in the last year is $75.9286.

Several brokerages have recently commented on BWA. Wolfe Research reaffirmed an "outperform" rating and set a $95.00 price target on shares of BorgWarner in a research report on Wednesday, June 3rd. JPMorgan Chase & Co. boosted their price objective on BorgWarner from $75.00 to $85.00 and gave the company an "overweight" rating in a report on Monday. Sanford C. Bernstein upgraded BorgWarner to a "buy" rating in a research note on Wednesday, June 10th. Wall Street Zen raised BorgWarner from a "hold" rating to a "buy" rating in a report on Saturday, June 27th. Finally, Wells Fargo & Company lifted their target price on BorgWarner from $68.00 to $83.00 and gave the stock an "overweight" rating in a research report on Tuesday, June 2nd.

Insider Buying and Selling at BorgWarner

In other news, CEO Joseph F. Fadool sold 29,000 shares of BorgWarner stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of $67.31, for a total value 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 approximately $27,325,436.84. The trade was a 6.67% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, VP Stefan Demmerle sold 5,000 shares of the business's stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of $65.00, for a total transaction of $325,000.00. Following the sale, the vice president directly owned 203,746 shares of the company's stock, valued at approximately $13,243,490. This represents a 2.40% decrease in their position. The SEC filing for this sale provides additional information. 0.76% of the stock is owned by insiders.

Hedge Funds Weigh In On BorgWarner

A number of large investors have recently bought and sold shares of BWA. Clearstead Trust LLC acquired a new stake in shares of BorgWarner during the 2nd quarter worth approximately $28,000. Prosperity Bancshares Inc acquired a new position in BorgWarner during the 4th quarter valued at approximately $37,000. Sound Income Strategies LLC grew its stake in BorgWarner by 9,888.9% during the 4th quarter. Sound Income Strategies LLC now owns 899 shares of the auto parts company's stock worth $42,000 after buying an additional 890 shares during the last quarter. Torren Management LLC acquired a new stake in BorgWarner in the fourth quarter worth $48,000. Finally, Cedar Mountain Advisors LLC acquired a new stake in BorgWarner in the first quarter worth $55,000. Institutional investors own 95.67% of the company's stock.

BorgWarner Stock Up 1.7%

BWA stock opened at $69.59 on Tuesday. The company has a current ratio of 2.13, a quick ratio of 1.76 and a debt-to-equity ratio of 0.67. The firm has a 50 day simple moving average of $67.53 and a 200-day simple moving average of $60.40. The company has a market capitalization of $14.17 billion, a P/E ratio of 34.80, a PEG ratio of 1.46 and a beta of 1.10. BorgWarner has a twelve month low of $38.31 and a twelve month high of $78.82.

BorgWarner (NYSE:BWA - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The auto parts company reported $1.42 earnings per share (EPS) 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 firm had revenue of $3.65 billion for the quarter, compared to analysts' expectations of $3.58 billion. The firm's quarterly revenue was up .3% on a year-over-year basis. During the same period in the prior year, the company posted $1.21 earnings per share. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. On average, equities research analysts predict that BorgWarner will post 5.17 earnings per share for the current fiscal year.

BorgWarner Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be paid a dividend of $0.17 per share. The ex-dividend date is Tuesday, September 1st. This represents a $0.68 annualized dividend and a yield of 1.0%. BorgWarner's dividend payout ratio (DPR) is 34.00%.

BorgWarner declared that its board has approved a share repurchase program on Wednesday, August 5th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the auto parts company to reacquire up to 7.7% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company's board of directors believes its stock is undervalued.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source