BorgWarner (NYSE:BWA) Reaches New 12-Month High - Time to Buy?

Key Points

• BorgWarner Inc. reached a new 52-week high of $41.67, with significant trading volume of over 2.9 million shares.
• The company declared a quarterly dividend increase from $0.11 to $0.17 per share, reflecting a 1.6% dividend yield.
• BorgWarner has received various analyst upgrades, with a consensus rating of "Moderate Buy" and a price target of approximately $39.64.

BorgWarner Inc. (NYSE:BWA - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Thursday . The company traded as high as $41.67 and last traded at $41.58, with a volume of 2922065 shares trading hands. The stock had previously closed at $40.14.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the company. Barclays reiterated an "overweight" rating and set a $45.00 price objective (up from $42.00) on shares of BorgWarner in a research note on Wednesday, July 16th. Wall Street Zen upgraded BorgWarner from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 12th. Bank of America increased their price target on BorgWarner from $35.00 to $41.00 and gave the stock a "buy" rating in a research report on Monday, June 16th. Morgan Stanley raised their price objective on BorgWarner from $40.00 to $42.00 and gave the company an "overweight" rating in a research report on Tuesday, August 12th. Finally, Piper Sandler raised their price target on BorgWarner from $37.00 to $44.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Six equities research analysts have rated the stock with a hold rating, ten have issued a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $39.64.

BorgWarner Price Performance

The stock has a market cap of $8.96 billion, a price-to-earnings ratio of 44.03, a price-to-earnings-growth ratio of 1.25 and a beta of 1.10. The company's 50-day moving average is $35.58 and its 200-day moving average is $31.70. The company has a quick ratio of 1.66, a current ratio of 2.02 and a debt-to-equity ratio of 0.64.

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

BorgWarner Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd will be given a $0.17 dividend. This is a boost from BorgWarner's previous quarterly dividend of $0.11. This represents a $0.68 annualized dividend and a dividend yield of 1.6%. BorgWarner's payout ratio is presently 46.81%.

BorgWarner declared that its Board of Directors has approved a stock repurchase plan on Thursday, July 31st that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the auto parts company to purchase up to 13.2% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's management believes its shares are undervalued.

Insider Activity at BorgWarner

In other news, VP Isabelle Mckenzie sold 2,500 shares of the business's stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $40.01, for a total value of $100,025.00. Following the completion of the transaction, the vice president directly owned 55,945 shares in the company, valued at approximately $2,238,359.45. The trade was a 4.28% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Stefan Demmerle sold 15,000 shares of the company's stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $39.31, for a total transaction of $589,650.00. Following the transaction, the vice president owned 234,040 shares of the company's stock, valued at approximately $9,200,112.40. This represents a 6.02% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 22,500 shares of company stock valued at $892,175 over the last 90 days. Corporate insiders own 0.45% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of BWA. Blackston Financial Advisory Group LLC grew its stake in BorgWarner by 3.4% in the 2nd quarter. Blackston Financial Advisory Group LLC now owns 7,970 shares of the auto parts company's stock worth $267,000 after buying an additional 265 shares in the last quarter. Trajan Wealth LLC boosted its stake in shares of BorgWarner by 4.6% in the 1st quarter. Trajan Wealth LLC now owns 7,978 shares of the auto parts company's stock valued at $229,000 after purchasing an additional 353 shares in the last quarter. Assetmark Inc. boosted its stake in shares of BorgWarner by 81.8% in the 2nd quarter. Assetmark Inc. now owns 809 shares of the auto parts company's stock valued at $27,000 after purchasing an additional 364 shares in the last quarter. Tectonic Advisors LLC boosted its stake in shares of BorgWarner by 2.3% in the 2nd quarter. Tectonic Advisors LLC now owns 17,002 shares of the auto parts company's stock valued at $569,000 after purchasing an additional 388 shares in the last quarter. Finally, Norinchukin Bank The boosted its stake in shares of BorgWarner by 4.4% in the 4th quarter. Norinchukin Bank The now owns 9,501 shares of the auto parts company's stock valued at $302,000 after purchasing an additional 402 shares in the last quarter. 95.67% of the stock is owned by institutional investors.

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.