BorgWarner Inc. (NYSE:BWA) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analysts have a “Moderate Buy” consensus on BorgWarner, with nine buy ratings and six holds. The average 12-month price target is $76.67, above the recent $67.53 share price.
• BorgWarner beat quarterly expectations, reporting $1.42 in EPS versus the $1.28 consensus and $3.65 billion in revenue. The board also approved a $1 billion share-repurchase plan, while the company maintains a $0.17 quarterly dividend.
• Institutional investors own 95.67% of the stock, with major firms including BlackRock and California State Teachers’ Retirement System increasing or initiating positions. Recent insider activity was mixed, featuring a director purchase and a chief accounting officer’s share sale.

Shares of BorgWarner Inc. (NYSE:BWA - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the fifteen ratings firms that are covering the stock, MarketBeat Ratings reports. Six investment analysts have rated the stock with a hold rating and nine have given a buy rating to the company. The average 12 month price target among brokerages that have issued a report on the stock in the last year is $76.6667.

Several equities analysts recently issued reports on BWA shares. Deutsche Bank Aktiengesellschaft set a $80.00 price objective on shares of BorgWarner in a research note on Thursday, August 6th. Wolfe Research reiterated an "outperform" rating and issued a $95.00 price target on shares of BorgWarner in a report on Wednesday, June 3rd. TD Cowen increased their price target on BorgWarner from $67.00 to $68.00 and gave the stock a "hold" rating in a research note on Thursday, August 6th. JPMorgan Chase & Co. raised their price objective on BorgWarner from $75.00 to $85.00 and gave the stock an "overweight" rating in a report on Monday, August 10th. Finally, Weiss Ratings upgraded BorgWarner from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday, June 29th.

Insider Activity

In related news, CAO Amy B. Kulikowski sold 2,900 shares of the company's stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $68.60, for a total transaction of $198,940.00. Following the completion of the transaction, the chief accounting officer owned 9,725 shares of the company's stock, valued at approximately $667,135. This represents a 22.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Rajesh Kalathur purchased 7,407 shares of the business's stock in a transaction on Wednesday, August 19th. The shares were bought at an average cost of $67.59 per share, for a total transaction of $500,639.13. Following the purchase, the director owned 7,407 shares of the company's stock, valued at $500,639.13. This trade represents a ∞ increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Corporate insiders own 0.76% of the company's stock.

Institutional Trading of BorgWarner

Institutional investors and hedge funds have recently made changes to their positions in the company. BlackRock Inc. purchased a new stake in BorgWarner during the second quarter valued at about $1,678,187,000. California State Teachers Retirement System raised its holdings in shares of BorgWarner by 6,262.3% in the 2nd quarter. California State Teachers Retirement System now owns 15,870,795 shares of the auto parts company's stock worth $1,053,821,000 after purchasing an additional 15,621,343 shares during the period. Dimensional Fund Advisors LP lifted its stake in shares of BorgWarner by 1.5% in the 4th quarter. Dimensional Fund Advisors LP now owns 11,961,482 shares of the auto parts company's stock valued at $538,996,000 after purchasing an additional 178,853 shares in the last quarter. AQR Capital Management LLC lifted its stake in shares of BorgWarner by 22.7% in the 4th quarter. AQR Capital Management LLC now owns 9,222,352 shares of the auto parts company's stock valued at $415,559,000 after purchasing an additional 1,703,576 shares in the last quarter. Finally, State Street Corp grew 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 worth $255,578,000 after purchasing an additional 380,942 shares during the period. 95.67% of the stock is currently owned by institutional investors and hedge funds.

BorgWarner Trading Up 2.7%

BorgWarner stock opened at $67.53 on Friday. The stock has a market cap of $13.75 billion, a PE ratio of 33.77, a P/E/G ratio of 1.18 and a beta of 1.12. The stock has a 50-day moving average price of $65.14 and a 200 day moving average price of $62.24. BorgWarner has a 52 week low of $40.50 and a 52 week high of $78.82. The company has a current ratio of 2.13, a quick ratio of 1.76 and a debt-to-equity ratio of 0.67.

BorgWarner (NYSE:BWA - Get Free Report) last released its earnings results on Wednesday, August 5th. The auto parts company reported $1.42 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.28 by $0.14. BorgWarner had a net margin of 2.89% and a return on equity of 19.10%. The company had revenue of $3.65 billion for the quarter, compared to analyst estimates of $3.58 billion. During the same period in the prior year, the firm earned $1.21 EPS. The firm's quarterly revenue was up .3% on a year-over-year basis. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. Equities research analysts predict that BorgWarner will post 5.2 earnings per share for the current fiscal year.

BorgWarner announced that its board has approved a stock repurchase plan on Wednesday, August 5th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the auto parts company to reacquire up to 7.7% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's board of directors believes its shares are undervalued.

BorgWarner Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be issued a $0.17 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $0.68 annualized dividend and a yield of 1.0%. BorgWarner's payout ratio is 34.00%.

BorgWarner Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source