Evercore ISI Increases BorgWarner (NYSE:BWA) Price Target to $42.00

Key Points

• Evercore ISI has raised BorgWarner's target price from $38.00 to $42.00, maintaining an "outperform" rating, which suggests a potential upside of 10.58%.
• BorgWarner reported earnings of $1.21 per share for the last quarter, surpassing expectations of $1.06 and reflecting a 1.0% increase in revenue year-over-year.
• The company announced a $1 billion stock buyback program, allowing for the repurchase of up to 13.2% of its shares, signaling confidence in its valuation.

BorgWarner (NYSE:BWA - Get Free Report) had its target price increased by research analysts at Evercore ISI from $38.00 to $42.00 in a note issued to investors on Monday,Benzinga reports. The brokerage currently has an "outperform" rating on the auto parts company's stock. Evercore ISI's price objective suggests a potential upside of 10.41% from the company's current price.

A number of other analysts also recently weighed in on the stock. Barclays reiterated an "overweight" rating and issued a $45.00 price target (up from $42.00) on shares of BorgWarner in a research report on Wednesday, July 16th. Piper Sandler lifted their price target on shares of BorgWarner from $37.00 to $44.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. UBS Group lifted their price target on shares of BorgWarner from $35.00 to $38.00 and gave the company a "neutral" rating in a research note on Monday, July 14th. Bank of America lifted their price target on shares of BorgWarner from $35.00 to $41.00 and gave the company a "buy" rating in a research note on Monday, June 16th. Finally, Robert W. Baird lifted their price target on shares of BorgWarner from $32.00 to $39.00 and gave the company a "neutral" rating in a research note on Friday, July 11th. Six investment analysts have rated the stock with a hold rating, ten have assigned a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $39.50.

BorgWarner Price Performance

NYSE:BWA traded up $0.16 during mid-day trading on Monday, reaching $38.04. 369,739 shares of the company were exchanged, compared to its average volume of 2,887,755. The stock has a market cap of $8.23 billion, a PE ratio of 40.47, a PEG ratio of 1.14 and a beta of 1.10. 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 has a 12 month low of $24.40 and a 12 month high of $38.50. The company has a fifty day moving average of $34.45 and a 200 day moving average of $31.30.

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, beating analysts' consensus estimates of $1.06 by $0.15. The business had revenue of $3.64 billion for the quarter, compared to the consensus estimate of $3.56 billion. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. BorgWarner's revenue for the quarter was up 1.0% on a year-over-year basis. During the same period last year, the company posted $1.19 EPS. On average, research analysts anticipate that BorgWarner will post 4.28 EPS for the current fiscal year.

BorgWarner declared that its Board of Directors has authorized a share buyback program 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 stock through open market purchases. Stock buyback programs are typically an indication that the company's management believes its shares are undervalued.

Insiders Place Their Bets

In other BorgWarner news, VP Isabelle Mckenzie sold 5,000 shares of BorgWarner stock in a transaction on Friday, May 16th. The shares were sold at an average price of $33.25, for a total transaction of $166,250.00. Following the completion of the transaction, the vice president directly owned 63,445 shares of the company's stock, valued at $2,109,546.25. The trade was a 7.31% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Tonit M. Calaway sold 27,736 shares of BorgWarner stock in a transaction on Monday, May 12th. The stock was sold at an average price of $32.83, for a total transaction of $910,572.88. Following the transaction, the executive vice president directly owned 214,521 shares of the company's stock, valued at approximately $7,042,724.43. This trade represents a 11.45% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.63% of the stock is currently owned by insiders.

Institutional Investors Weigh In On BorgWarner

A number of institutional investors have recently modified their holdings of BWA. O Shaughnessy Asset Management LLC lifted its position in BorgWarner by 19.5% during the fourth quarter. O Shaughnessy Asset Management LLC now owns 36,196 shares of the auto parts company's stock worth $1,151,000 after purchasing an additional 5,908 shares during the period. Wellington Management Group LLP lifted its position in BorgWarner by 231.1% during the fourth quarter. Wellington Management Group LLP now owns 91,466 shares of the auto parts company's stock worth $2,908,000 after purchasing an additional 63,837 shares during the period. Franklin Resources Inc. lifted its position in BorgWarner by 7.2% during the fourth quarter. Franklin Resources Inc. now owns 271,965 shares of the auto parts company's stock worth $8,646,000 after purchasing an additional 18,340 shares during the period. National Bank of Canada FI lifted its position in BorgWarner by 10.5% during the fourth quarter. National Bank of Canada FI now owns 101,275 shares of the auto parts company's stock worth $3,220,000 after purchasing an additional 9,622 shares during the period. Finally, Prudential PLC lifted its position in BorgWarner by 374.2% during the fourth quarter. Prudential PLC now owns 82,200 shares of the auto parts company's stock worth $2,613,000 after purchasing an additional 64,867 shares during the period. 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.