BorgWarner Inc. (BWA) - What Are Investment Firms Saying About This Stock?

Key Points

• Analysts remain broadly bullish: BorgWarner has a “Moderate Buy” consensus, with 10 buy ratings and four holds among 14 analysts. The average 12-month price target is $79, while recent targets range from $68 to $87.
• Recent results exceeded expectations: The company reported quarterly EPS of $1.42 versus the $1.28 consensus estimate, with revenue of $3.65 billion. Full-year 2026 EPS guidance is $5.05–$5.30.
• Shareholder returns are supported by capital actions: BorgWarner approved a $1 billion share-repurchase program covering up to 7.7% of shares and pays a quarterly dividend of $0.17, yielding approximately 1.2% annually.

Shares of BorgWarner Inc. (NYSE:BWA - Get Free Report) have been assigned a consensus recommendation of "Moderate Buy" from the fourteen ratings firms that are covering the company, Marketbeat.com reports. Four research analysts have rated the stock with a hold rating and ten have issued a buy rating on the company. The average 12 month price objective among brokers that have updated their coverage on the stock in the last year is $79.00.

A number of research analysts recently commented on the stock. Barclays raised their price objective on shares of BorgWarner from $83.00 to $85.00 and gave the company an "overweight" rating in a research note on Monday, August 10th. JPMorgan Chase & Co. boosted their price target on shares of BorgWarner from $75.00 to $85.00 and gave the company an "overweight" rating in a report on Monday, August 10th. Royal Bank Of Canada initiated coverage on shares of BorgWarner in a research report on Monday, August 31st. They issued an "outperform" rating and a $87.00 target price for the company. Deutsche Bank Aktiengesellschaft set a $80.00 price objective on shares of BorgWarner in a research note on Thursday, August 6th. Finally, TD Cowen boosted their target price on shares of BorgWarner from $67.00 to $68.00 and gave the stock a "hold" rating in a research report on Thursday, August 6th.

Insiders Place Their Bets

In other news, Director Rajesh Kalathur bought 7,407 shares of the company's stock in a transaction that occurred on Wednesday, August 19th. The stock was acquired at an average price of $67.59 per share, for a total transaction of $500,639.13. Following the transaction, the director directly owned 7,407 shares of the company's stock, valued at $500,639.13. This trade represents a ∞ increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Michael S. Hanley sold 5,000 shares of the firm's stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $65.51, for a total transaction of $327,550.00. Following the sale, the director directly owned 34,313 shares of the company's stock, valued at approximately $2,247,844.63. The trade was a 12.72% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.76% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Cullen Capital Management LLC acquired a new stake in BorgWarner in the 2nd quarter valued at about $4,937,000. Louisiana State Employees Retirement System bought a new position in shares of BorgWarner in the first quarter worth about $3,256,000. Tribune Investment Group LP acquired a new position in shares of BorgWarner during the second quarter worth approximately $3,432,000. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in shares of BorgWarner during the second quarter worth approximately $5,664,000. Finally, Hsbc Holdings PLC bought a new stake in shares of BorgWarner during the second quarter valued at approximately $35,785,000. 95.67% of the stock is owned by institutional investors.

BorgWarner Stock Down 0.9%

BorgWarner stock opened at $54.95 on Friday. BorgWarner has a one year low of $40.73 and a one year high of $78.82. The company has a debt-to-equity ratio of 0.67, a quick ratio of 1.76 and a current ratio of 2.13. The firm has a market capitalization of $11.19 billion, a P/E ratio of 27.48, a P/E/G ratio of 0.81 and a beta of 1.16. The company has a 50-day simple moving average of $62.61 and a 200-day simple moving average of $63.74.

BorgWarner (NYSE:BWA - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The auto parts company reported $1.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.28 by $0.14. BorgWarner had a return on equity of 19.10% and a net margin of 2.89%. The business had revenue of $3.65 billion during the quarter, compared to the consensus estimate of $3.58 billion. During the same period in the previous year, the firm posted $1.21 earnings per share. The business's revenue was up .3% on a year-over-year basis. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. As a group, equities analysts expect that BorgWarner will post 5.19 earnings per share for the current year.

BorgWarner Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st were paid a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date was Tuesday, September 1st. BorgWarner's dividend payout ratio is presently 34.00%.

BorgWarner declared that its Board of Directors has approved a stock repurchase program on Wednesday, August 5th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the auto parts company to reacquire up to 7.7% of its shares through open market purchases. Share repurchase programs are usually a sign that the company's board of directors believes its shares are undervalued.

BorgWarner Company Profile

BorgWarner Inc NYSE: BWA is a global automotive technology company that develops and manufactures propulsion and mobility systems for vehicle manufacturers and commercial vehicle customers. The company serves both internal-combustion and electrified vehicle markets, with a portfolio focused on improving vehicle efficiency, performance, emissions, and electrification.

Its products and technologies include turbochargers, emissions and thermal-management systems, transmission components, friction products, battery systems, battery charging equipment, power electronics, electric motors, and other electric-drive components.

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