BorgWarner (NYSE:BWA) Rating Increased to Outperform at Robert W. Baird

Key Points

• Robert W. Baird upgraded BorgWarner from a "neutral" to an "outperform" rating, raising the target price from $41.00 to $52.00, indicating a potential upside of 21.99% from the last close.
• BorgWarner recently announced a $1 billion share repurchase plan, allowing the company to buy back up to 13.2% of its outstanding shares, signaling confidence in the stock's valuation.
• The company reported earnings per share (EPS) of $1.21 for the last quarter, surpassing analyst estimates and showing a year-over-year revenue increase of 1.0%.

Robert W. Baird upgraded shares of BorgWarner (NYSE:BWA - Free Report) from a neutral rating to an outperform rating in a research note issued to investors on Wednesday morning, Marketbeat Ratings reports. They currently have $52.00 target price on the auto parts company's stock, up from their previous target price of $41.00.

Other equities analysts also recently issued research reports about the company. UBS Group upped their price objective on BorgWarner from $35.00 to $38.00 and gave the company a "neutral" rating in a research note on Monday, July 14th. JPMorgan Chase & Co. upped their price objective on BorgWarner from $43.00 to $45.00 and gave the company an "overweight" rating in a research note on Monday, August 4th. Piper Sandler upped their price objective on BorgWarner from $37.00 to $44.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. Wells Fargo & Company upped their price objective on BorgWarner from $45.00 to $46.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. Finally, Morgan Stanley upped their price objective on BorgWarner from $40.00 to $42.00 and gave the company an "overweight" rating in a research note on Tuesday, August 12th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, BorgWarner presently has an average rating of "Moderate Buy" and a consensus price target of $40.57.

BorgWarner Stock Performance

Shares of NYSE BWA traded up $0.15 during midday trading on Wednesday, reaching $44.00. The company's stock had a trading volume of 2,033,625 shares, compared to its average volume of 2,249,205. BorgWarner has a 12-month low of $24.40 and a 12-month high of $44.32. The firm has a 50 day moving average price of $38.46 and a 200-day moving average price of $32.98. The stock has a market capitalization of $9.52 billion, a P/E ratio of 46.81, a PEG ratio of 1.33 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 (NYSE:BWA - Get Free Report) last announced its earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share for the quarter, topping analysts' consensus estimates of $1.06 by $0.15. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%.The firm had revenue of $3.64 billion for the quarter, compared to the consensus estimate of $3.56 billion. During the same quarter in the previous year, the business earned $1.19 EPS. The company's revenue was up 1.0% compared to the same quarter last year. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. As a group, equities analysts predict that BorgWarner will post 4.28 earnings per share for the current year.

BorgWarner Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd will be given a dividend of $0.17 per share. This is an increase from BorgWarner's previous quarterly dividend of $0.11. This represents a $0.68 annualized dividend and a dividend yield of 1.5%. The ex-dividend date is Tuesday, September 2nd. BorgWarner's dividend payout ratio (DPR) is currently 72.34%.

BorgWarner declared that its board has authorized a stock repurchase program on Thursday, July 31st that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the auto parts company to buy up to 13.2% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company's board believes its stock is undervalued.

Insider Transactions at BorgWarner

In other news, VP Isabelle Mckenzie sold 2,500 shares of the company's stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $40.01, for a total value of $100,025.00. Following the transaction, the vice president owned 55,945 shares of the company's stock, valued at approximately $2,238,359.45. This represents a 4.28% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, VP Stefan Demmerle sold 15,000 shares of the company's stock in a transaction on Tuesday, August 12th. The stock was sold at an average price of $39.31, for a total transaction of $589,650.00. Following the completion of the transaction, the vice president directly owned 234,040 shares in the company, valued at approximately $9,200,112.40. The trade was a 6.02% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 31,272 shares of company stock valued at $1,263,318. 0.45% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Dimensional Fund Advisors LP increased its holdings in shares of BorgWarner by 2.5% in the first quarter. Dimensional Fund Advisors LP now owns 11,568,627 shares of the auto parts company's stock worth $331,429,000 after purchasing an additional 284,587 shares during the period. State Street Corp increased its stake in BorgWarner by 5.3% in the second quarter. State Street Corp now owns 7,633,760 shares of the auto parts company's stock valued at $255,578,000 after acquiring an additional 380,942 shares during the last quarter. LSV Asset Management increased its stake in BorgWarner by 36.7% in the first quarter. LSV Asset Management now owns 5,889,080 shares of the auto parts company's stock valued at $168,722,000 after acquiring an additional 1,580,935 shares during the last quarter. Turtle Creek Asset Management Inc. increased its stake in BorgWarner by 7.0% in the fourth quarter. Turtle Creek Asset Management Inc. now owns 4,078,780 shares of the auto parts company's stock valued at $129,664,000 after acquiring an additional 267,250 shares during the last quarter. Finally, Bank of America Corp DE increased its stake in BorgWarner by 91.9% in the fourth quarter. Bank of America Corp DE now owns 3,878,932 shares of the auto parts company's stock valued at $123,311,000 after acquiring an additional 1,857,907 shares during the last quarter. Institutional investors own 95.67% of the company's stock.

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.