BorgWarner (NYSE:BWA) Reaches New 52-Week High - Still a Buy?

Key Points

• BorgWarner shares hit a new 52-week high, trading as high as $70.36 and closing near that level, up about 2.5% on the day.
• The company’s latest earnings beat expectations, with EPS of $1.24 versus $1.16 expected and revenue of $3.53 billion versus $3.50 billion anticipated; BorgWarner also guided FY 2026 EPS to 5.00-5.20.
• Wall Street remains mixed but constructive, with an overall Moderate Buy rating and an average price target of $68.14, while the company also announced a quarterly dividend of $0.17 per share.

BorgWarner Inc. (NYSE:BWA - Get Free Report)'s share price hit a new 52-week high during trading on Wednesday . The company traded as high as $70.36 and last traded at $70.2980, with a volume of 198234 shares changing hands. The stock had previously closed at $68.26.

Wall Street Analyst Weigh In

BWA has been the subject of several research reports. Robert W. Baird set a $76.00 price target on BorgWarner in a research report on Thursday, February 12th. Wall Street Zen cut shares of BorgWarner from a "strong-buy" rating to a "buy" rating in a research report on Saturday, May 9th. Weiss Ratings restated a "hold (c)" rating on shares of BorgWarner in a research report on Monday, April 20th. Evercore reiterated an "outperform" rating and issued a $75.00 price objective on shares of BorgWarner in a report on Tuesday, February 17th. Finally, Bank of America started coverage on BorgWarner in a report on Wednesday, March 4th. They set a "neutral" rating on the stock. Seven equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $68.14.

BorgWarner Stock Up 2.5%

The firm's fifty day simple moving average is $57.01 and its two-hundred day simple moving average is $51.73. The company has a market capitalization of $14.34 billion, a price-to-earnings ratio of 41.38, a price-to-earnings-growth ratio of 1.27 and a beta of 1.00. The company has a current ratio of 2.13, a quick ratio of 1.75 and a debt-to-equity ratio of 0.69.

BorgWarner (NYSE:BWA - Get Free Report) last released its quarterly earnings data on Wednesday, May 6th. The auto parts company reported $1.24 EPS for the quarter, beating analysts' consensus estimates of $1.16 by $0.08. BorgWarner had a return on equity of 18.36% and a net margin of 2.53%.The firm had revenue of $3.53 billion for the quarter, compared to analysts' expectations of $3.50 billion. During the same period in the prior year, the firm posted $1.11 earnings per share. The firm's quarterly revenue was up .5% on a year-over-year basis. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. Sell-side analysts anticipate that BorgWarner Inc. will post 5.16 EPS for the current year.

BorgWarner Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Monday, June 1st will be given a $0.17 dividend. The ex-dividend date of this dividend is Monday, June 1st. This represents a $0.68 dividend on an annualized basis and a yield of 1.0%. BorgWarner's dividend payout ratio is presently 40.24%.

Insider Buying and Selling at BorgWarner

In other BorgWarner news, EVP Paul Arthur Farrell sold 12,012 shares of the business's stock in a transaction that occurred on Thursday, March 12th. The stock was sold at an average price of $52.31, for a total value of $628,347.72. Following the sale, the executive vice president owned 38,238 shares of the company's stock, valued at $2,000,229.78. The trade was a 23.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Joseph F. Fadool sold 29,000 shares of the firm's stock in a transaction on Wednesday, May 13th. The stock was sold at an average price of $67.31, for a total value of $1,951,990.00. Following the transaction, the chief executive officer owned 405,964 shares of the company's stock, valued at approximately $27,325,436.84. This represents a 6.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 96,033 shares of company stock valued at $5,792,558. 0.76% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On BorgWarner

Institutional investors have recently bought and sold shares of the company. Arete Wealth Advisors LLC acquired a new stake in shares of BorgWarner during the first quarter worth about $1,039,000. Ariadne Wealth Management LP boosted its position in BorgWarner by 3.8% in the 1st quarter. Ariadne Wealth Management LP now owns 5,958 shares of the auto parts company's stock valued at $323,000 after buying an additional 218 shares during the period. Bank of America Corp DE grew its stake 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 worth $204,780,000 after acquiring an additional 68,802 shares in the last quarter. Kentucky Retirement Systems purchased a new stake in shares of BorgWarner during the first quarter worth $1,050,000. Finally, Bull Harbor Capital LLC purchased a new position in BorgWarner in the first quarter valued at $1,056,000. 95.67% of the stock is owned by institutional investors and hedge funds.

BorgWarner Company Profile

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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