Piper Sandler Boosts BorgWarner (NYSE:BWA) Price Target to $44.00

Key Points

• Piper Sandler raised its price target for BorgWarner from $37.00 to $44.00, indicating a potential upside of 19.79% from the stock's previous close and maintaining an "overweight" rating.
• BorgWarner reported an earnings per share (EPS) of $1.21 for the last quarter, exceeding analysts' expectations of $1.06, with quarterly revenue of $3.64 billion compared to expectations of $3.56 billion.
• The company's Board of Directors initiated a $1.00 billion stock repurchase program, allowing the buyback of up to 13.2% of its outstanding shares, a sign of confidence in the stock's valuation.

BorgWarner (NYSE:BWA - Get Free Report) had its price target upped by analysts at Piper Sandler from $37.00 to $44.00 in a report released on Friday,Benzinga reports. The firm currently has an "overweight" rating on the auto parts company's stock. Piper Sandler's price objective points to a potential upside of 17.30% from the company's previous close.

Other equities research analysts have also issued reports about the stock. The Goldman Sachs Group upgraded shares of BorgWarner from a "neutral" rating to a "buy" rating and boosted their price objective for the stock from $31.00 to $34.00 in a research report on Thursday, April 10th. Robert W. Baird raised their target price on BorgWarner from $32.00 to $39.00 and gave the company a "neutral" rating in a report on Friday, July 11th. Barclays reissued an "overweight" rating and set a $45.00 price target (up previously from $42.00) on shares of BorgWarner in a research report on Wednesday, July 16th. UBS Group raised their price target on shares of BorgWarner from $35.00 to $38.00 and gave the stock a "neutral" rating in a research report on Monday, July 14th. Finally, Wall Street Zen raised BorgWarner from a "buy" rating to a "strong-buy" rating in a research note on Saturday, July 12th. Six research analysts have rated the stock with a hold rating, ten have given a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $39.64.

BorgWarner Trading Up 1.9%

BWA traded up $0.71 on Friday, hitting $37.51. The company had a trading volume of 2,840,282 shares, compared to its average volume of 1,940,693. The company has a market cap of $8.12 billion, a PE ratio of 39.90, a PEG ratio of 1.61 and a beta of 1.10. The company has a quick ratio of 1.66, a current ratio of 2.02 and a debt-to-equity ratio of 0.64. The business's fifty day simple moving average is $34.25 and its 200 day simple moving average is $31.21. BorgWarner has a 12-month low of $24.40 and a 12-month high of $37.57.

BorgWarner (NYSE:BWA - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The auto parts company reported $1.21 EPS for the quarter, topping the consensus estimate of $1.06 by $0.15. The firm had revenue of $3.64 billion during the quarter, compared to analyst estimates of $3.56 billion. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%. The business's revenue for the quarter was up 1.0% compared to the same quarter last year. During the same period in the previous year, the company posted $1.19 EPS. Equities research analysts expect that BorgWarner will post 4.28 EPS for the current year.

BorgWarner announced that its Board of Directors has initiated a stock buyback program on Thursday, July 31st that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the auto parts company to buy up to 13.2% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company's management believes its stock is undervalued.

Insider Transactions at BorgWarner

In other news, EVP Tonit M. Calaway sold 27,736 shares of BorgWarner stock in a transaction that occurred on Monday, May 12th. The shares were sold at an average price of $32.83, for a total transaction of $910,572.88. Following the completion of the sale, the executive vice president owned 214,521 shares of the company's stock, valued at approximately $7,042,724.43. The trade was a 11.45% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP Isabelle Mckenzie sold 5,000 shares of BorgWarner stock in a transaction that occurred on Friday, May 16th. The stock was sold at an average price of $33.25, for a total transaction of $166,250.00. Following the completion of the transaction, the vice president directly owned 63,445 shares in the company, valued at approximately $2,109,546.25. The trade was a 7.31% decrease in their position. The disclosure for this sale can be found here. Insiders own 0.63% of the company's stock.

Institutional Trading of BorgWarner

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Logan Capital Management Inc. boosted its holdings in shares of BorgWarner by 49.7% during the 2nd quarter. Logan Capital Management Inc. now owns 18,076 shares of the auto parts company's stock worth $605,000 after purchasing an additional 6,000 shares during the last quarter. Teacher Retirement System of Texas increased its position in shares of BorgWarner by 8.2% during the second quarter. Teacher Retirement System of Texas now owns 66,769 shares of the auto parts company's stock worth $2,235,000 after acquiring an additional 5,082 shares during the period. Convergence Investment Partners LLC boosted its stake in shares of BorgWarner by 3.8% in the 2nd quarter. Convergence Investment Partners LLC now owns 39,457 shares of the auto parts company's stock valued at $1,321,000 after buying an additional 1,436 shares during the period. Envestnet Asset Management Inc. grew its holdings in BorgWarner by 0.7% during the 2nd quarter. Envestnet Asset Management Inc. now owns 276,199 shares of the auto parts company's stock worth $9,247,000 after acquiring an additional 2,054 shares in the last quarter. Finally, Brighton Jones LLC acquired a new stake in BorgWarner in the second quarter valued at $518,000. 95.67% of the stock is owned by institutional investors and hedge funds.

About BorgWarner

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.