BorgWarner (NYSE:BWA) Downgraded by Wall Street Zen to "Hold"

Key Points

• Wall Street Zen downgraded BorgWarner from buy to hold, adding to a mixed analyst backdrop for the auto parts maker.
• Other firms remain split on the stock: recent reports included upgraded price targets from several analysts, and the overall consensus on BorgWarner is still Moderate Buy with an average target price of about $71.14.
• BorgWarner recently beat quarterly expectations, posting $1.24 EPS on $3.53 billion in revenue, while executives also sold shares and insiders reduced holdings in recent months.

BorgWarner (NYSE:BWA - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a note issued to investors on Saturday.

A number of other analysts have also commented on BWA. Morgan Stanley boosted their price objective on shares of BorgWarner from $60.00 to $67.00 and gave the stock an "equal weight" rating in a research report on Wednesday, May 27th. Wolfe Research reissued an "outperform" rating and issued a $95.00 price objective on shares of BorgWarner in a research report on Wednesday. TD Cowen boosted their price objective on shares of BorgWarner from $66.00 to $67.00 and gave the stock a "hold" rating in a research report on Thursday, May 7th. UBS Group upped their price target on shares of BorgWarner from $56.00 to $61.00 and gave the stock a "neutral" rating in a research report on Thursday, May 7th. Finally, Robert W. Baird set a $76.00 price target on shares of BorgWarner in a research report on Thursday, February 12th. Seven analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. Based on data from MarketBeat, BorgWarner has an average rating of "Moderate Buy" and an average target price of $71.14.

BorgWarner Stock Performance

Shares of BWA stock opened at $72.72 on Friday. The company's fifty day simple moving average is $60.20 and its 200-day simple moving average is $53.25. The company has a quick ratio of 1.75, a current ratio of 2.13 and a debt-to-equity ratio of 0.69. The firm has a market cap of $14.92 billion, a PE ratio of 43.03, a P/E/G ratio of 1.48 and a beta of 1.07. BorgWarner has a 12 month low of $32.22 and a 12 month high of $78.82.

BorgWarner (NYSE:BWA - Get Free Report) last announced its quarterly earnings data on Wednesday, May 6th. The auto parts company reported $1.24 EPS for the quarter, topping analysts' consensus estimates of $1.16 by $0.08. The business had revenue of $3.53 billion for the quarter, compared to analyst estimates 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 quarter in the previous year, the firm posted $1.11 earnings per share. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. Equities research analysts expect that BorgWarner will post 5.18 EPS for the current fiscal year.

Insider Activity

In other BorgWarner news, EVP Tania Wingfield sold 5,000 shares of the company's stock in a transaction on Monday, May 11th. The shares were sold at an average price of $63.24, for a total transaction of $316,200.00. Following the sale, the executive vice president directly owned 35,365 shares of the company's stock, valued at approximately $2,236,482.60. This represents a 12.39% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, VP Stefan Demmerle sold 5,000 shares of the company's stock in a transaction on Wednesday, May 13th. The stock was 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 in the company, valued at $13,243,490. This trade represents a 2.40% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 96,033 shares of company stock valued at $5,792,558. 0.76% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On BorgWarner

Several large investors have recently modified their holdings of the stock. DV Trading LLC raised its position in shares of BorgWarner by 488.1% in the first quarter. DV Trading LLC now owns 4,705 shares of the auto parts company's stock valued at $255,000 after purchasing an additional 3,905 shares during the period. NewEdge Advisors LLC raised its position in shares of BorgWarner by 2.2% in the first quarter. NewEdge Advisors LLC now owns 10,293 shares of the auto parts company's stock valued at $558,000 after purchasing an additional 220 shares during the period. Arete Wealth Advisors LLC bought a new position in shares of BorgWarner in the first quarter valued at about $1,039,000. Ariadne Wealth Management LP raised its position in shares of BorgWarner by 3.8% in the first quarter. Ariadne Wealth Management LP now owns 5,958 shares of the auto parts company's stock valued at $323,000 after purchasing an additional 218 shares during the period. Finally, Bank of America Corp DE raised its position in shares of BorgWarner by 1.9% in the first quarter. Bank of America Corp DE now owns 3,774,056 shares of the auto parts company's stock valued at $204,780,000 after purchasing an additional 68,802 shares during the period. 95.67% of the stock is owned by institutional investors.

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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