JPMorgan Chase & Co. Issues Positive Forecast for BorgWarner (NYSE:BWA) Stock Price

Key Points

• JPMorgan raised BorgWarner’s price target to $85 from $75 and maintained an “overweight” rating, implying 21.66% upside from the reported $69.87 share price.
• BorgWarner reported quarterly adjusted earnings of $1.42 per share, beating estimates by $0.14, while revenue of $3.65 billion also exceeded expectations. Analysts collectively rate the stock “Moderate Buy,” with an average price target of $75.93.
• The company authorized a $1 billion share-repurchase program, allowing it to buy back up to 7.7% of outstanding shares; institutional investors own 95.67% of the stock, while insiders recently sold shares.

BorgWarner (NYSE:BWA - Get Free Report) had its target price boosted by JPMorgan Chase & Co. from $75.00 to $85.00 in a research report issued on Monday,Benzinga reports. The firm currently has an "overweight" rating on the auto parts company's stock. JPMorgan Chase & Co.'s price objective would indicate a potential upside of 21.66% from the stock's current price.

A number of other equities analysts also recently issued reports on the company. Wall Street Zen upgraded BorgWarner from a "hold" rating to a "buy" rating in a research note on Saturday, June 27th. Sanford C. Bernstein upgraded BorgWarner to a "buy" rating in a research report on Wednesday, June 10th. Wolfe Research reissued an "outperform" rating and issued a $95.00 target price on shares of BorgWarner in a research report on Wednesday, June 3rd. TD Cowen boosted their price target on BorgWarner from $67.00 to $68.00 and gave the company a "hold" rating in a research note on Thursday. Finally, Morgan Stanley upped their price target on shares of BorgWarner from $67.00 to $71.00 and gave the company an "equal weight" rating in a research report on Thursday. Nine investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $75.93.

BorgWarner Stock Up 2.1%

Shares of BWA stock traded up $1.45 during mid-day trading on Monday, hitting $69.87. The company's stock had a trading volume of 1,497,397 shares, compared to its average volume of 2,862,291. BorgWarner has a 52-week low of $38.31 and a 52-week high of $78.82. The business has a 50-day moving average price of $67.56 and a 200 day moving average price of $60.24. 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 stock has a market cap of $14.23 billion, a price-to-earnings ratio of 34.94, a PEG ratio of 1.46 and a beta of 1.10.

BorgWarner (NYSE:BWA - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The auto parts company reported $1.42 earnings per share for the quarter, beating the consensus estimate of $1.28 by $0.14. The firm had revenue of $3.65 billion during the quarter, compared to analysts' expectations of $3.58 billion. BorgWarner had a net margin of 2.89% and a return on equity of 19.10%. The firm's quarterly revenue was up .3% on a year-over-year basis. During the same period in the previous year, the company earned $1.21 earnings per share. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. Research analysts predict that BorgWarner will post 5.17 EPS for the current fiscal year.

BorgWarner announced that its Board of Directors has approved a share repurchase program 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 programs are usually an indication that the company's leadership believes its stock is undervalued.

Insider Activity

In related news, CEO Joseph F. Fadool sold 29,000 shares of the stock in a transaction that occurred on 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 sale, the chief executive officer directly owned 405,964 shares of the company's stock, valued at approximately $27,325,436.84. This represents a 6.67% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP Stefan Demmerle sold 5,000 shares of the firm's stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $65.00, for a total transaction of $325,000.00. Following the sale, the vice president owned 203,746 shares in the company, valued at approximately $13,243,490. The trade was a 2.40% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 37,500 shares of company stock valued at $2,498,715 in the last ninety days. Corporate insiders own 0.76% of the company's stock.

Institutional Trading of BorgWarner

Institutional investors and hedge funds have recently modified their holdings of the company. Great Lakes Advisors LLC purchased a new position in shares of BorgWarner during the 2nd quarter valued at $34,825,000. Danske Bank A S purchased a new stake in BorgWarner in the 2nd quarter worth $566,000. Wealthfront Advisers LLC bought a new stake in BorgWarner during the second quarter valued at about $529,000. Foster & Motley Inc. bought a new stake in BorgWarner during the second quarter valued at about $2,076,000. Finally, RHS Financial LLC purchased a new position in shares of BorgWarner in the second quarter valued at about $264,000. 95.67% of the stock is currently owned by institutional investors.

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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