BorgWarner Inc. (NYSE:BWA) Stock Has Average Price Target of $78.86

Key Points

• Analysts have a “Moderate Buy” consensus on BorgWarner, with nine buy ratings and six holds among 15 brokerages. The average 12-month price target is $78.86, versus a recent share price of $61.00.
• BorgWarner beat quarterly expectations, reporting $1.42 in EPS versus the $1.28 consensus and $3.65 billion in revenue. The company also authorized a $1 billion share-repurchase plan covering up to 7.7% of outstanding stock.
• Institutional investors own 95.67% of the stock, while insiders own 0.76%; recent insider activity included a director’s $500,639 purchase and a chief accounting officer’s $198,940 sale.

BorgWarner Inc. (NYSE:BWA - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the fifteen brokerages that are currently covering the firm, Marketbeat reports. Six analysts have rated the stock with a hold recommendation and nine have assigned a buy recommendation to the company. The average 1 year price target among brokers that have updated their coverage on the stock in the last year is $78.86.

BWA has been the subject of a number of analyst reports. Barclays lifted their target price on shares of BorgWarner from $83.00 to $85.00 and gave the stock an "overweight" rating in a research note on Monday, August 10th. TD Cowen boosted their price objective on BorgWarner from $67.00 to $68.00 and gave the company a "hold" rating in a research note on Thursday, August 6th. Robert W. Baird set a $79.00 target price on BorgWarner in a research report on Thursday, August 6th. Deutsche Bank Aktiengesellschaft set a $80.00 target price on BorgWarner in a research note on Thursday, August 6th. Finally, Wolfe Research reiterated an "outperform" rating and issued a $95.00 target price on shares of BorgWarner in a report on Wednesday, June 3rd.

Insider Activity

In related news, Director Rajesh Kalathur purchased 7,407 shares of BorgWarner stock in a transaction on Wednesday, August 19th. The stock was acquired at an average cost of $67.59 per share, for a total transaction of $500,639.13. Following the completion of the acquisition, the director owned 7,407 shares of the company's stock, valued at $500,639.13. This trade represents a ∞ increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CAO Amy B. Kulikowski sold 2,900 shares of BorgWarner stock in a transaction 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 sale, the chief accounting officer directly owned 9,725 shares of the company's stock, valued at approximately $667,135. This trade represents a 22.97% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.76% of the stock is currently owned by company insiders.

Institutional Trading of BorgWarner

Large investors have recently made changes to their positions in the company. BlackRock Inc. acquired a new position in BorgWarner during the 2nd quarter worth approximately $1,678,187,000. William Blair Investment Management LLC bought a new position in BorgWarner in the second quarter worth approximately $251,305,000. Bank of America Corp DE acquired a new stake in BorgWarner in the second quarter valued at approximately $250,618,000. Geode Capital Management LLC grew its stake in BorgWarner by 10.9% in the fourth quarter. Geode Capital Management LLC now owns 4,297,717 shares of the auto parts company's stock valued at $193,695,000 after acquiring an additional 423,933 shares during the period. Finally, Swedbank AB increased its holdings in shares of BorgWarner by 5.4% during the first quarter. Swedbank AB now owns 2,933,151 shares of the auto parts company's stock valued at $159,153,000 after acquiring an additional 150,144 shares in the last quarter. 95.67% of the stock is currently owned by institutional investors and hedge funds.

BorgWarner Price Performance

BorgWarner stock opened at $61.00 on Wednesday. The stock's 50 day moving average is $64.84 and its 200 day moving average is $63.03. The company has a debt-to-equity ratio of 0.67, a current ratio of 2.13 and a quick ratio of 1.76. The firm has a market cap of $12.42 billion, a P/E ratio of 30.50, a P/E/G ratio of 1.10 and a beta of 1.12. BorgWarner has a one year low of $40.50 and a one year high of $78.82.

BorgWarner (NYSE:BWA - Get Free Report) last announced its earnings results on Wednesday, August 5th. The auto parts company reported $1.42 EPS for the quarter, beating 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 for the quarter, compared to analysts' expectations of $3.58 billion. During the same period in the prior year, the business posted $1.21 earnings per share. The firm'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, research analysts expect that BorgWarner will post 5.2 EPS for the current year.

BorgWarner Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st were given a dividend of $0.17 per share. The ex-dividend date of this dividend was Tuesday, September 1st. This represents a $0.68 annualized dividend and a dividend yield of 1.1%. BorgWarner's dividend payout ratio (DPR) is 34.00%.

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

About BorgWarner

BorgWarner Inc is a global automotive supplier that develops and manufactures propulsion, drivetrain, thermal-management and emissions technologies. The company serves automakers and commercial-vehicle manufacturers, supplying components and systems for internal-combustion, hybrid and electric vehicles.

Its product portfolio includes turbochargers, transmission systems, all-wheel-drive and four-wheel-drive technologies, clutches, timing systems, battery systems, power electronics, electric motors, thermal-management products and charging-related technologies.

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