BorgWarner (NYSE:BWA) Price Target Raised to $54.00

Key Points

• BorgWarner's target price was raised to $54.00 by Wells Fargo, indicating a potential upside of 24.6% from its current stock price.
• The company reported an EPS of $1.21 for the last quarter, exceeding expectations of $1.06, along with a revenue of $3.64 billion.
• A share buyback plan of up to $1.00 billion has been approved, allowing BorgWarner to repurchase 13.2% of its outstanding shares.

BorgWarner (NYSE:BWA - Get Free Report) had its target price lifted by equities researchers at Wells Fargo & Company from $50.00 to $54.00 in a report released on Thursday,Benzinga reports. The brokerage currently has an "overweight" rating on the auto parts company's stock. Wells Fargo & Company's target price indicates a potential upside of 24.61% from the stock's current price.

A number of other equities research analysts have also issued reports on the company. JPMorgan Chase & Co. lifted their target price on BorgWarner from $43.00 to $45.00 and gave the company an "overweight" rating in a research report on Monday, August 4th. Wall Street Zen raised shares of BorgWarner from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 12th. Evercore ISI lifted their target price on BorgWarner from $38.00 to $42.00 and gave the company an "outperform" rating in a research report on Monday, August 4th. Barclays restated an "overweight" rating and issued a $45.00 price target (up from $42.00) on shares of BorgWarner in a research note on Wednesday, July 16th. Finally, Bank of America downgraded shares of BorgWarner from a "buy" rating to a "neutral" rating and boosted their target price for the stock from $41.00 to $46.00 in a report on Wednesday, September 10th. Two research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat, BorgWarner presently has a consensus rating of "Moderate Buy" and an average price target of $41.50.

BorgWarner Trading Down 0.0%

BorgWarner stock traded down $0.01 during mid-day trading on Thursday, hitting $43.34. The stock had a trading volume of 81,200 shares, compared to its average volume of 2,780,304. The stock has a market capitalization of $9.38 billion, a PE ratio of 46.05, a P/E/G ratio of 1.44 and a beta of 1.09. BorgWarner has a 12 month low of $24.40 and a 12 month high of $44.70. The company has a current ratio of 2.02, a quick ratio of 1.66 and a debt-to-equity ratio of 0.64. The stock has a 50-day simple moving average of $40.73 and a two-hundred day simple moving average of $34.26.

BorgWarner (NYSE:BWA - Get Free Report) last issued its earnings results on Thursday, July 31st. The auto parts company reported $1.21 EPS for the quarter, beating the consensus estimate 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 during the quarter, compared to analysts' expectations of $3.56 billion. During the same quarter in the previous year, the company posted $1.19 EPS. The business's revenue for the quarter was up 1.0% compared to the same quarter last year. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. As a group, sell-side analysts forecast that BorgWarner will post 4.28 EPS for the current year.

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

Insider Buying and Selling at BorgWarner

In related news, VP Stefan Demmerle sold 15,000 shares of the business's stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $39.31, for a total value of $589,650.00. Following the transaction, the vice president owned 234,040 shares in the company, valued at $9,200,112.40. The trade was a 6.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Alexis P. Michas sold 8,772 shares of the company's stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $42.31, for a total value of $371,143.32. Following the sale, the director owned 78,903 shares in the company, valued at approximately $3,338,385.93. The trade was a 10.01% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 31,272 shares of company stock worth $1,263,318. 0.45% of the stock is currently owned by company insiders.

Institutional Trading of BorgWarner

Large investors have recently made changes to their positions in the company. New York State Teachers Retirement System grew its position in BorgWarner by 3.8% in the 1st quarter. New York State Teachers Retirement System now owns 219,180 shares of the auto parts company's stock valued at $6,280,000 after purchasing an additional 7,977 shares during the period. Avantax Advisory Services Inc. lifted its position in BorgWarner by 13.3% in the 1st quarter. Avantax Advisory Services Inc. now owns 13,258 shares of the auto parts company's stock valued at $380,000 after acquiring an additional 1,555 shares in the last quarter. Sage Rhino Capital LLC acquired a new position in BorgWarner during the 1st quarter valued at about $235,000. Brown Advisory Inc. purchased a new stake in shares of BorgWarner in the first quarter worth approximately $522,000. Finally, Zurich Insurance Group Ltd FI bought a new stake in BorgWarner during the first quarter worth $1,223,000. 95.67% of the stock is currently owned by institutional investors and hedge funds.

BorgWarner Company Profile

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.

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