BorgWarner (NYSE:BWA) Stock Rating Lowered by Zacks Research

Key Points

• BorgWarner has been downgraded by Zacks Research from a "strong-buy" rating to a "hold" rating, reflecting a shift in analysts' sentiment.
• Despite the downgrade, other analysts have maintained positive outlooks, with JPMorgan Chase & Co. raising its target price from $43.00 to $45.00, and Piper Sandler increasing its target price from $37.00 to $44.00.
• BorgWarner's Board of Directors initiated a $1 billion stock repurchase plan, indicating confidence in the company's valuation and future prospects.

BorgWarner (NYSE:BWA - Get Free Report) was downgraded by research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report released on Monday,Zacks.com reports.

Other research analysts have also recently issued reports about the company. JPMorgan Chase & Co. boosted their target price on BorgWarner from $43.00 to $45.00 and gave the company an "overweight" rating in a research note on Monday, August 4th. Wall Street Zen upgraded BorgWarner from a "buy" rating to a "strong-buy" rating in a research note on Saturday, July 12th. Weiss Ratings reissued a "hold (c)" rating on shares of BorgWarner in a research report on Wednesday, October 8th. Piper Sandler raised their target price on BorgWarner from $37.00 to $44.00 and gave the company an "overweight" rating in a report on Friday, August 1st. Finally, Morgan Stanley raised their price objective on BorgWarner from $40.00 to $42.00 and gave the company an "overweight" rating in a report on Tuesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and seven have issued a Hold rating to the company's stock. According to data from MarketBeat, BorgWarner currently has an average rating of "Moderate Buy" and an average price target of $44.64.

BorgWarner Trading Up 1.3%

NYSE BWA opened at $41.75 on Monday. The stock has a 50-day simple moving average of $42.70 and a 200 day simple moving average of $35.68. The company has a market capitalization of $9.03 billion, a PE ratio of 44.41, a P/E/G ratio of 1.35 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 has a 12 month low of $24.40 and a 12 month high of $44.97.

BorgWarner (NYSE:BWA - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The auto parts company reported $1.21 EPS for the quarter, beating analysts' consensus estimates of $1.06 by $0.15. The business had revenue of $3.64 billion during the quarter, compared to the consensus estimate of $3.56 billion. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%.The firm's revenue was up 1.0% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.19 earnings per share. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. Research analysts forecast that BorgWarner will post 4.28 EPS for the current year.

BorgWarner announced that its Board of Directors has initiated a stock repurchase plan on Thursday, July 31st that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the auto parts company to purchase up to 13.2% of its shares through open market purchases. Shares buyback plans are often an indication that the company's board of directors believes its stock is undervalued.

Insider Activity at BorgWarner

In other BorgWarner news, Director Alexis P. Michas sold 8,772 shares of the business's stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $42.31, for a total transaction of $371,143.32. Following the sale, the director owned 78,903 shares of the company's stock, valued at $3,338,385.93. The trade was a 10.01% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, 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 transaction of $589,650.00. Following the sale, the vice president directly owned 234,040 shares in the company, valued at $9,200,112.40. The trade was a 6.02% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 31,272 shares of company stock worth $1,263,318. Insiders own 0.63% of the company's stock.

Institutional Investors Weigh In On BorgWarner

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Parcion Private Wealth LLC purchased a new stake in shares of BorgWarner in the third quarter worth $294,000. Brighton Jones LLC increased its stake in BorgWarner by 141.1% in the third quarter. Brighton Jones LLC now owns 37,325 shares of the auto parts company's stock valued at $1,641,000 after acquiring an additional 21,843 shares during the last quarter. CHICAGO TRUST Co NA increased its stake in BorgWarner by 3.1% in the third quarter. CHICAGO TRUST Co NA now owns 56,320 shares of the auto parts company's stock valued at $2,476,000 after acquiring an additional 1,694 shares during the last quarter. USA Financial Formulas bought a new position in BorgWarner in the third quarter valued at $763,000. Finally, Thomasville National Bank bought a new position in BorgWarner in the third quarter valued at $278,000. Institutional investors own 95.67% of the company's stock.

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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