BorgWarner's (BWA) Hold (C) Rating Reiterated at Weiss Ratings

Key Points

• BorgWarner's stock retains a "hold (c)" rating from Weiss Ratings, with recent upgrades from multiple analysts boosting target prices, indicating a generally positive outlook.
• The company reported a 1.21 EPS for its recent quarter, exceeding expectations, while also initiating a $1 billion stock repurchase plan.
• Institutional investors continue to increase their stakes in BorgWarner, with 95.67% of the stock owned by hedge funds and other institutions as of recent reports.

BorgWarner (NYSE:BWA - Get Free Report)'s stock had its "hold (c)" rating reiterated by equities research analysts at Weiss Ratings in a research note issued to investors on Wednesday,Weiss Ratings reports.

A number of other equities research analysts also recently weighed in on BWA. JPMorgan Chase & Co. boosted their price objective on shares of BorgWarner from $43.00 to $45.00 and gave the company an "overweight" rating in a research report on Monday, August 4th. Piper Sandler lifted their target price 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. Baird R W raised shares of BorgWarner from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, September 3rd. Wall Street Zen raised shares of BorgWarner from a "buy" rating to a "strong-buy" rating in a research note on Saturday, July 12th. Finally, Evercore ISI boosted 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. Two investment analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $43.36.

BorgWarner Trading Up 1.1%

BWA stock traded up $0.47 during midday trading on Wednesday, hitting $42.85. The stock had a trading volume of 2,024,572 shares, compared to its average volume of 2,751,254. The firm has a market cap of $9.27 billion, a PE ratio of 45.59, a price-to-earnings-growth ratio of 1.46 and a beta of 1.09. The company has a debt-to-equity ratio of 0.64, a current ratio of 2.02 and a quick ratio of 1.66. BorgWarner has a 12-month low of $24.40 and a 12-month high of $44.97. The company's 50-day moving average price is $42.23 and its 200 day moving average price is $35.25.

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

BorgWarner announced that its Board of Directors has initiated a stock repurchase 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 repurchase up to 13.2% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling at BorgWarner

In other BorgWarner news, VP Stefan Demmerle sold 5,000 shares of BorgWarner stock in a transaction that occurred on Wednesday, August 13th. The shares were sold at an average price of $40.50, for a total transaction of $202,500.00. Following the transaction, the vice president directly owned 229,040 shares of the company's stock, valued at approximately $9,276,120. This trade represents a 2.14% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Alexis P. Michas sold 8,772 shares of BorgWarner stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $42.31, for a total transaction of $371,143.32. Following the transaction, the director directly owned 78,903 shares in the company, valued at $3,338,385.93. This trade represents a 10.01% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 31,272 shares of company stock worth $1,263,318 over the last three months. 0.63% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in BWA. Dimensional Fund Advisors LP boosted its holdings in shares of BorgWarner by 2.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 11,568,627 shares of the auto parts company's stock valued at $331,429,000 after buying an additional 284,587 shares in the last quarter. State Street Corp boosted its holdings in shares of BorgWarner by 5.3% during the 2nd quarter. State Street Corp now owns 7,633,760 shares of the auto parts company's stock valued at $255,578,000 after buying an additional 380,942 shares in the last quarter. LSV Asset Management boosted its holdings in shares of BorgWarner by 36.7% during the 1st quarter. LSV Asset Management now owns 5,889,080 shares of the auto parts company's stock valued at $168,722,000 after buying an additional 1,580,935 shares in the last quarter. American Century Companies Inc. boosted its holdings in shares of BorgWarner by 1.6% during the 2nd quarter. American Century Companies Inc. now owns 3,774,828 shares of the auto parts company's stock valued at $126,381,000 after buying an additional 58,252 shares in the last quarter. Finally, AQR Capital Management LLC boosted its holdings in shares of BorgWarner by 307.1% during the 2nd quarter. AQR Capital Management LLC now owns 3,422,874 shares of the auto parts company's stock valued at $114,153,000 after buying an additional 2,582,105 shares in the last quarter. 95.67% of the stock is owned by hedge funds and other institutional investors.

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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