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

Key Points

• Wall Street Zen downgraded BorgWarner from “strong-buy” to “buy”, though the broader analyst view remains positive with an overall “Moderate Buy” rating and an average target price of $67.50.
• BorgWarner beat Q1 earnings and revenue estimates, reporting $1.24 EPS versus $1.16 expected and $3.53 billion in revenue versus $3.50 billion expected. The company also kept its FY 2026 EPS guidance at 5.00–5.20.
• Insider selling has been notable, with executives selling 78,083 shares worth about $4.64 million over the last three months. Meanwhile, institutional investors still own a large majority of the stock at 95.67%.

BorgWarner (NYSE:BWA - Get Free Report) was downgraded by analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued to clients and investors on Saturday.

BWA has been the subject of a number of other reports. UBS Group boosted their target price on shares of BorgWarner from $56.00 to $61.00 and gave the company a "neutral" rating in a report on Thursday. TD Cowen boosted their target price on shares of BorgWarner from $66.00 to $67.00 and gave the company a "hold" rating in a report on Thursday. The Goldman Sachs Group boosted their target price on shares of BorgWarner from $54.00 to $78.00 and gave the company a "buy" rating in a report on Thursday, February 12th. Wells Fargo & Company lowered their target price on shares of BorgWarner to $68.00 and set an "overweight" rating for the company in a report on Tuesday, March 31st. Finally, Barclays boosted their target price on shares of BorgWarner from $70.00 to $75.00 and gave the company an "overweight" rating in a report on Thursday. Seven equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat.com, BorgWarner presently has an average rating of "Moderate Buy" and an average target price of $67.50.

BorgWarner Stock Performance

NYSE:BWA opened at $61.28 on Friday. The firm has a 50 day simple moving average of $54.39 and a 200-day simple moving average of $49.85. The company has a debt-to-equity ratio of 0.69, a current ratio of 2.13 and a quick ratio of 1.70. The firm has a market cap of $12.57 billion, a PE ratio of 36.26, a P/E/G ratio of 1.22 and a beta of 1.00. BorgWarner has a 1-year low of $31.35 and a 1-year high of $70.08.

BorgWarner (NYSE:BWA - Get Free Report) last released its earnings results on Wednesday, May 6th. The auto parts company reported $1.24 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.16 by $0.08. BorgWarner had a net margin of 2.53% and a return on equity of 18.36%. The firm had revenue of $3.53 billion during the quarter, compared to the consensus estimate of $3.50 billion. During the same period in the previous year, the firm earned $1.11 earnings per share. BorgWarner's revenue was up .5% compared to the same quarter last year. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. On average, equities analysts expect that BorgWarner will post 5.13 EPS for the current year.

Insider Transactions at BorgWarner

In related news, EVP Tania Wingfield sold 17,867 shares of the firm's stock in a transaction that occurred on Friday, February 13th. The shares were sold at an average price of $63.43, for a total value of $1,133,303.81. Following the transaction, the executive vice president owned 45,429 shares in the company, valued at approximately $2,881,561.47. This trade represents a 28.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Paul Arthur Farrell sold 12,012 shares of the firm's stock in a transaction that occurred on Thursday, March 12th. The shares were sold at an average price of $52.31, for a total transaction of $628,347.72. Following the completion of the transaction, the executive vice president owned 38,238 shares in the company, valued at $2,000,229.78. The trade was a 23.90% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 78,083 shares of company stock valued at $4,638,585 in the last three months. 0.76% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Root Financial Partners LLC purchased a new position in BorgWarner in the third quarter valued at approximately $27,000. Prosperity Bancshares Inc acquired a new stake in BorgWarner in the fourth quarter valued at approximately $37,000. Sound Income Strategies LLC grew 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 valued at $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 approximately $48,000. Finally, Olistico Wealth LLC acquired a new stake in BorgWarner in the fourth quarter valued at approximately $50,000. Hedge funds and other institutional investors own 95.67% of the company's stock.

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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