BorgWarner (NYSE:BWA) Trading Up 4.9% - Here's Why

Key Points

• BorgWarner shares rose 4.9% on Wednesday, reaching as high as $77.72, as trading volume came in well below average.
• Recent analyst activity was mixed but generally constructive: several firms lifted price targets, and the stock currently carries a Moderate Buy consensus with a $69.21 average price target.
• The company beat its latest quarterly earnings and revenue estimates, and it also announced a quarterly dividend of $0.17 per share, equal to a 0.9% annualized yield.

BorgWarner Inc. (NYSE:BWA - Get Free Report)'s share price was up 4.9% during trading on Wednesday . The company traded as high as $77.72 and last traded at $77.72. Approximately 604,852 shares changed hands during trading, a decline of 79% from the average daily volume of 2,915,854 shares. The stock had previously closed at $74.08.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on BWA shares. UBS Group lifted their price objective on BorgWarner from $56.00 to $61.00 and gave the stock a "neutral" rating in a research report on Thursday, May 7th. Weiss Ratings reiterated a "hold (c)" rating on shares of BorgWarner in a research report on Monday, April 20th. Wall Street Zen cut BorgWarner from a "strong-buy" rating to a "buy" rating in a research report on Saturday, May 9th. JPMorgan Chase & Co. lifted their price objective on BorgWarner from $73.00 to $75.00 and gave the stock an "overweight" rating in a research report on Thursday, May 14th. Finally, Deutsche Bank Aktiengesellschaft set a $81.00 price objective on BorgWarner in a research report on Tuesday, April 21st. Seven equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. Based on data from MarketBeat, BorgWarner currently has an average rating of "Moderate Buy" and a consensus price target of $69.21.

BorgWarner Trading Up 5.2%

The business has a 50 day simple moving average of $58.53 and a 200-day simple moving average of $52.47. The company has a current ratio of 2.13, a quick ratio of 1.75 and a debt-to-equity ratio of 0.69. The stock has a market capitalization of $15.98 billion, a price-to-earnings ratio of 46.11, a price-to-earnings-growth ratio of 1.36 and a beta of 1.07.

BorgWarner (NYSE:BWA - Get Free Report) last issued its quarterly earnings results on Wednesday, May 6th. The auto parts company reported $1.24 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.16 by $0.08. The firm had revenue of $3.53 billion for 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 quarterly revenue was up .5% on a year-over-year basis. During the same period last year, the company earned $1.11 EPS. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. On average, equities analysts predict that BorgWarner Inc. will post 5.18 earnings per share for the current year.

BorgWarner Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Monday, June 1st will be paid a $0.17 dividend. This represents a $0.68 annualized dividend and a dividend yield of 0.9%. The ex-dividend date of this dividend is Monday, June 1st. BorgWarner's payout ratio is currently 40.24%.

Insiders Place Their Bets

In other news, EVP Tania Wingfield sold 5,000 shares of BorgWarner stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $63.24, for a total value of $316,200.00. Following the transaction, the executive vice president directly owned 35,365 shares of the company's stock, valued at $2,236,482.60. The trade was a 12.39% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, CEO Joseph F. Fadool sold 29,000 shares of BorgWarner stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of $67.31, for a total value of $1,951,990.00. Following the completion of the transaction, the chief executive officer directly owned 405,964 shares in the company, valued at $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 ninety days, insiders sold 96,033 shares of company stock worth $5,792,558. 0.76% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of BWA. DV Trading LLC grew its stake in BorgWarner by 488.1% during the 1st quarter. DV Trading LLC now owns 4,705 shares of the auto parts company's stock valued at $255,000 after purchasing an additional 3,905 shares in the last quarter. NewEdge Advisors LLC raised its position in shares of BorgWarner by 2.2% in the 1st quarter. NewEdge Advisors LLC now owns 10,293 shares of the auto parts company's stock valued at $558,000 after purchasing an additional 220 shares in the last quarter. Arete Wealth Advisors LLC purchased a new position in shares of BorgWarner during the 1st quarter valued at approximately $1,039,000. Ariadne Wealth Management LP grew its position in shares of BorgWarner by 3.8% during the first quarter. Ariadne Wealth Management LP now owns 5,958 shares of the auto parts company's stock worth $323,000 after buying an additional 218 shares in the last quarter. Finally, Bank of America Corp DE increased 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 buying an additional 68,802 shares during the last quarter. Institutional investors and hedge funds own 95.67% of the company's stock.

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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