BorgWarner (NYSE:BWA) Sets New 1-Year High Following Analyst Upgrade

Key Points

• BorgWarner shares hit a new 52-week high after JPMorgan raised its price target from $73 to $75 and kept an overweight rating. The stock traded as high as $70.31, up sharply from the prior close of $66.87.
• The company’s latest earnings report was solid, with EPS of $1.24 beating estimates and revenue of $3.53 billion slightly topping forecasts. BorgWarner also maintained its FY2026 guidance of 5.00 to 5.20 EPS.
• BorgWarner announced a quarterly dividend of $0.17 per share, payable June 15, for an annualized yield of about 1.0%. Meanwhile, insider selling and mixed analyst views show some caution despite the recent rally.

Shares of BorgWarner Inc. (NYSE:BWA - Get Free Report) reached a new 52-week high during mid-day trading on Thursday after JPMorgan Chase & Co. raised their price target on the stock from $73.00 to $75.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. BorgWarner traded as high as $70.31 and last traded at $69.3550, with a volume of 1635435 shares trading hands. The stock had previously closed at $66.87.

A number of other equities research analysts have also recently issued reports on BWA. Wells Fargo & Company cut their target price on BorgWarner to $68.00 and set an "overweight" rating on the stock in a research note on Tuesday, March 31st. Wall Street Zen cut BorgWarner from a "strong-buy" rating to a "buy" rating in a research note on Saturday, May 9th. Morgan Stanley set a $60.00 target price on BorgWarner in a research note on Thursday, February 12th. TD Cowen raised their target price on BorgWarner from $66.00 to $67.00 and gave the company a "hold" rating in a research note on Thursday, May 7th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of BorgWarner in a research note on Monday, April 20th. Seven research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $67.64.

Insider Transactions at BorgWarner

In other BorgWarner news, EVP Tania Wingfield sold 5,000 shares of the business's stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $63.24, for a total value of $316,200.00. Following the sale, the executive vice president directly owned 35,365 shares in the company, valued at approximately $2,236,482.60. The trade was a 12.39% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Paul Arthur Farrell sold 12,012 shares of BorgWarner stock in a transaction dated Thursday, March 12th. The stock was sold at an average price of $52.31, for a total value of $628,347.72. Following the completion of the transaction, the executive vice president directly owned 38,238 shares in the company, valued at $2,000,229.78. This represents a 23.90% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 111,583 shares of company stock valued at $6,671,710 in the last quarter. 0.76% of the stock is owned by company insiders.

Hedge Funds Weigh In On BorgWarner

Institutional investors and hedge funds have recently bought and sold shares of the business. Jackson Creek Investment Advisors LLC purchased a new position in BorgWarner during the 3rd quarter valued at about $1,876,000. Ritholtz Wealth Management purchased a new position in BorgWarner during the 3rd quarter valued at about $1,016,000. Savant Capital LLC grew its stake in BorgWarner by 130.4% during the 3rd quarter. Savant Capital LLC now owns 72,427 shares of the auto parts company's stock valued at $3,184,000 after acquiring an additional 40,993 shares in the last quarter. Sivia Capital Partners LLC purchased a new position in BorgWarner during the 2nd quarter valued at about $339,000. Finally, Arjuna Capital purchased a new position in BorgWarner during the 3rd quarter valued at about $1,526,000. Hedge funds and other institutional investors own 95.67% of the company's stock.

BorgWarner Trading Up 3.6%

The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.75 and a current ratio of 2.13. The company has a 50 day simple moving average of $54.88 and a two-hundred day simple moving average of $50.42. The company has a market cap of $14.21 billion, a PE ratio of 41.03, a PEG ratio of 1.23 and a beta of 1.00.

BorgWarner (NYSE:BWA - Get Free Report) last announced its quarterly earnings results on Wednesday, May 6th. The auto parts company reported $1.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.16 by $0.08. The business had revenue of $3.53 billion during the quarter, compared to analyst estimates of $3.50 billion. BorgWarner had a return on equity of 18.36% and a net margin of 2.53%.The firm's revenue was up .5% on a year-over-year basis. During the same period in the previous year, the company earned $1.11 EPS. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. Sell-side analysts forecast that BorgWarner Inc. will post 5.15 EPS for the current year.

BorgWarner Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Monday, June 1st will be issued a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 1.0%. The ex-dividend date is Monday, June 1st. BorgWarner's payout ratio is currently 40.24%.

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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