BorgWarner (NYSE:BWA) Sets New 52-Week High - Here's What Happened

Key Points

• BorgWarner's stock reached a new 52-week high of $44.86, with significant trading volume and an average target price among analysts of approximately $42.79.
• The company recently increased its quarterly dividend to $0.17 per share, reflecting a 1.5% yield, an increase from the previous quarterly dividend of $0.11.
• BorgWarner reported strong earnings in its last quarter, with $1.21 EPS, surpassing analysts' expectations and showing a 1% increase in revenue year-over-year.

BorgWarner Inc. (NYSE:BWA - Get Free Report) reached a new 52-week high during mid-day trading on Friday . The stock traded as high as $44.86 and last traded at $44.80, with a volume of 91336 shares. The stock had previously closed at $44.42.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on BWA shares. Bank of America cut BorgWarner from a "buy" rating to a "neutral" rating and increased their price objective for the stock from $41.00 to $46.00 in a report on Wednesday, September 10th. Robert W. Baird upgraded shares of BorgWarner from a "neutral" rating to an "outperform" rating and lifted their price target for the company from $41.00 to $52.00 in a report on Wednesday, September 3rd. Weiss Ratings reissued a "hold (c)" rating on shares of BorgWarner in a research report on Saturday, September 27th. Evercore ISI raised their target price on shares of BorgWarner from $38.00 to $42.00 and gave the stock an "outperform" rating in a research report on Monday, August 4th. Finally, Zacks Research upgraded shares of BorgWarner from a "hold" rating to a "strong-buy" rating in a research report on Friday, September 12th. Two analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $42.79.

BorgWarner Trading Up 0.7%

The stock's fifty day moving average price is $41.73 and its 200 day moving average price is $34.89. The stock has a market cap of $9.68 billion, a P/E ratio of 47.63, a PEG ratio of 1.46 and a beta of 1.09. The company has a current ratio of 2.02, a quick ratio of 1.66 and a debt-to-equity ratio of 0.64.

BorgWarner (NYSE:BWA - Get Free Report) last issued its quarterly earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share (EPS) for the quarter, beating 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 during the quarter, compared to analysts' expectations of $3.56 billion. During the same period last year, the company posted $1.19 EPS. BorgWarner's revenue was up 1.0% on a year-over-year basis. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. Equities research analysts expect that BorgWarner Inc. will post 4.28 earnings per share for the current year.

BorgWarner Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, September 15th. Investors of record on Tuesday, September 2nd were paid a $0.17 dividend. This represents a $0.68 annualized dividend and a dividend yield of 1.5%. The ex-dividend date was Tuesday, September 2nd. This is an increase from BorgWarner's previous quarterly dividend of $0.11. BorgWarner's dividend payout ratio (DPR) is currently 72.34%.

BorgWarner declared that its board has authorized a share buyback plan on Thursday, July 31st that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the auto parts company to reacquire up to 13.2% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's leadership believes its shares are undervalued.

Insiders Place Their Bets

In related news, VP Isabelle Mckenzie sold 2,500 shares of the company's stock in a transaction dated Tuesday, August 12th. The shares were sold at an average price of $40.01, for a total value of $100,025.00. Following the transaction, the vice president owned 55,945 shares in the company, valued at $2,238,359.45. The trade was a 4.28% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP Stefan Demmerle sold 5,000 shares of the stock in a transaction dated Wednesday, August 13th. The shares were sold at an average price of $40.50, for a total transaction of $202,500.00. Following the sale, the vice president directly owned 229,040 shares in the company, valued at $9,276,120. This trade represents a 2.14% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 31,272 shares of company stock valued at $1,263,318. 0.45% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On BorgWarner

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Global X Japan Co. Ltd. boosted its holdings in shares of BorgWarner by 133.4% during the 1st quarter. Global X Japan Co. Ltd. now owns 915 shares of the auto parts company's stock valued at $26,000 after acquiring an additional 523 shares during the last quarter. Caitong International Asset Management Co. Ltd lifted its position in BorgWarner by 1,133.3% during the second quarter. Caitong International Asset Management Co. Ltd now owns 777 shares of the auto parts company's stock valued at $26,000 after purchasing an additional 714 shares during the period. Assetmark Inc. boosted its holdings in BorgWarner by 81.8% in the second quarter. Assetmark Inc. now owns 809 shares of the auto parts company's stock worth $27,000 after purchasing an additional 364 shares during the last quarter. Addison Advisors LLC grew its position in BorgWarner by 1,647.8% in the 2nd quarter. Addison Advisors LLC now owns 804 shares of the auto parts company's stock worth $27,000 after purchasing an additional 758 shares during the period. Finally, Manchester Capital Management LLC bought a new position in shares of BorgWarner during the 1st quarter valued at $30,000. Institutional investors own 95.67% of the company's stock.

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.

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