BorgWarner Inc. (NYSE:BWA) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• BorgWarner has a consensus analyst rating of “Moderate Buy” from 15 covering analysts, with nine buy ratings and six hold ratings. The average 12-month price target is $74.00.
• The company reported better-than-expected quarterly results, posting EPS of $1.24 versus estimates of $1.16 and revenue of $3.53 billion versus $3.50 billion expected. BorgWarner also reiterated FY 2026 guidance of 5.00–5.20 EPS.
• BorgWarner recently paid a quarterly dividend of $0.17 per share, equal to an annualized yield of about 0.9%. Meanwhile, insiders have been selling shares, while institutional ownership remains high at 95.67%.

BorgWarner Inc. (NYSE:BWA - Get Free Report) has earned an average recommendation of "Moderate Buy" from the fifteen analysts that are covering the stock, Marketbeat reports. Six research analysts have rated the stock with a hold rating and nine have issued a buy rating on the company. The average 12-month target price among brokers that have issued ratings on the stock in the last year is $74.00.

Several brokerages have recently commented on BWA. Sanford C. Bernstein upgraded BorgWarner to a "buy" rating in a research note on Wednesday, June 10th. Weiss Ratings restated a "hold (c)" rating on shares of BorgWarner in a research note on Monday, April 20th. Wells Fargo & Company raised their price target on BorgWarner from $68.00 to $83.00 and gave the company an "overweight" rating in a research note on Tuesday, June 2nd. Barclays raised their price target on 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 reiterated a "buy" rating and issued a $84.00 target price on shares of BorgWarner in a research note on Thursday, June 11th.

BorgWarner Stock Performance

Shares of BorgWarner stock opened at $71.96 on Monday. The firm has a market cap of $14.76 billion, a P/E ratio of 42.58, a P/E/G ratio of 1.38 and a beta of 1.07. The company has a current ratio of 2.13, a quick ratio of 1.75 and a debt-to-equity ratio of 0.69. BorgWarner has a 12 month low of $32.24 and a 12 month high of $78.82. The stock's fifty day moving average price is $64.08 and its 200-day moving average price is $55.45.

BorgWarner (NYSE:BWA - Get Free Report) last announced its quarterly earnings results on Wednesday, May 6th. The auto parts company reported $1.24 EPS for the quarter, beating the consensus estimate of $1.16 by $0.08. The firm had revenue of $3.53 billion for the quarter, compared to analyst estimates of $3.50 billion. BorgWarner had a return on equity of 18.36% and a net margin of 2.53%.The business's revenue for the quarter was up .5% on a year-over-year basis. During the same quarter last year, the firm posted $1.11 earnings per share. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. On average, equities research analysts expect that BorgWarner will post 5.18 earnings per share for the current fiscal year.

BorgWarner Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Monday, June 1st were paid a $0.17 dividend. This represents a $0.68 annualized dividend and a yield of 0.9%. The ex-dividend date was Monday, June 1st. BorgWarner's payout ratio is 40.24%.

Insider Buying and Selling

In other BorgWarner news, EVP Tania Wingfield sold 5,000 shares of BorgWarner stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $63.24, for a total value of $316,200.00. Following the transaction, the executive vice president owned 35,365 shares in the company, valued at $2,236,482.60. The trade was a 12.39% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Isabelle Mckenzie sold 3,500 shares of BorgWarner stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $63.35, for a total value of $221,725.00. Following the completion of the transaction, the vice president owned 57,828 shares in the company, valued at $3,663,403.80. This trade represents a 5.71% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 67,500 shares of company stock worth $4,310,115 over the last ninety days. 0.76% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On BorgWarner

Several institutional investors and hedge funds have recently added to or reduced their stakes in BWA. Acadian Asset Management LLC grew its stake in BorgWarner by 23.7% in the first quarter. Acadian Asset Management LLC now owns 8,979 shares of the auto parts company's stock valued at $257,000 after purchasing an additional 1,723 shares during the last quarter. Sivia Capital Partners LLC acquired a new stake in BorgWarner in the second quarter worth about $339,000. EverSource Wealth Advisors LLC boosted its holdings in BorgWarner by 400.5% in the second quarter. EverSource Wealth Advisors LLC now owns 5,531 shares of the auto parts company's stock worth $185,000 after acquiring an additional 4,426 shares in the last quarter. Marshall Wace LLP acquired a new stake in BorgWarner in the second quarter worth about $247,000. Finally, Cerity Partners LLC boosted its holdings in BorgWarner by 30.2% in the second quarter. Cerity Partners LLC now owns 143,841 shares of the auto parts company's stock worth $4,816,000 after acquiring an additional 33,362 shares in the last quarter. Hedge funds and other institutional investors own 95.67% of the company's stock.

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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