Wells Fargo & Company Issues Positive Forecast for BorgWarner (NYSE:BWA) Stock Price

Key Points

• Wells Fargo & Company raised its price target for BorgWarner stock from $45.00 to $46.00, indicating a potential upside of 25.48% from its current price.
• BorgWarner's stock currently holds a Moderate Buy rating, with a mix of 10 buy ratings, 6 hold ratings, and 1 strong buy rating from analysts.
• The company recently authorized a $1.00 billion share repurchase plan, allowing it to buy back up to 13.2% of its shares, which suggests confidence in its stock valuation.

BorgWarner (NYSE:BWA - Get Free Report) had its price objective lifted by Wells Fargo & Company from $45.00 to $46.00 in a note issued to investors on Friday,Benzinga reports. The firm currently has an "overweight" rating on the auto parts company's stock. Wells Fargo & Company's target price would suggest a potential upside of 25.48% from the stock's current price.

Several other research analysts also recently weighed in on the stock. UBS Group upped their target price on shares of BorgWarner from $35.00 to $38.00 and gave the company a "neutral" rating in a research note on Monday, July 14th. The Goldman Sachs Group raised shares of BorgWarner from a "neutral" rating to a "buy" rating and upped their price target for the company from $31.00 to $34.00 in a report on Thursday, April 10th. Wall Street Zen raised shares of BorgWarner from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 12th. Barclays reaffirmed an "overweight" rating and issued a $45.00 price target (up from $42.00) on shares of BorgWarner in a report on Wednesday, July 16th. Finally, Piper Sandler upped their price target on shares of BorgWarner from $37.00 to $44.00 and gave the company an "overweight" rating in a report on Friday. Six investment analysts have rated the stock with a hold rating, ten have issued a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, BorgWarner currently has an average rating of "Moderate Buy" and an average target price of $39.64.

BorgWarner Stock Down 0.4%

Shares of BWA stock traded down $0.14 on Friday, hitting $36.66. The stock had a trading volume of 326,662 shares, compared to its average volume of 2,891,820. The firm has a market capitalization of $8.05 billion, a price-to-earnings ratio of 29.34, a P/E/G ratio of 1.60 and a beta of 1.09. The stock's 50 day moving average is $34.16 and its 200-day moving average is $31.18. The company has a debt-to-equity ratio of 0.65, a quick ratio of 1.60 and a current ratio of 1.97. BorgWarner has a 52-week low of $24.40 and a 52-week high of $37.29.

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, beating the consensus estimate of $1.06 by $0.15. The business had revenue of $3.64 billion during the quarter, compared to the consensus estimate of $3.56 billion. BorgWarner had a net margin of 2.06% and a return on equity of 16.13%. The business's quarterly revenue was up 1.0% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.19 earnings per share. As a group, research analysts expect that BorgWarner will post 4.28 earnings per share for the current year.

BorgWarner announced that its Board of Directors has authorized a share repurchase plan on Thursday, July 31st that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the auto parts company to buy up to 13.2% of its shares through open market purchases. Shares buyback plans are often an indication that the company's leadership believes its shares are undervalued.

Insider Transactions at BorgWarner

In other BorgWarner news, VP Isabelle Mckenzie sold 5,000 shares of the company's stock in a transaction dated Friday, May 16th. The shares were sold at an average price of $33.25, for a total value of $166,250.00. Following the completion of the transaction, the vice president owned 63,445 shares in the company, valued at approximately $2,109,546.25. This represents a 7.31% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Tonit M. Calaway sold 27,736 shares of the company's stock in a transaction dated Monday, May 12th. The stock was sold at an average price of $32.83, for a total transaction of $910,572.88. Following the completion of the transaction, the executive vice president owned 214,521 shares of the company's stock, valued at approximately $7,042,724.43. This trade represents a 11.45% decrease in their position. The disclosure for this sale can be found here. 0.45% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Dimensional Fund Advisors LP lifted its stake in shares of BorgWarner by 2.5% in the 1st quarter. Dimensional Fund Advisors LP now owns 11,568,627 shares of the auto parts company's stock worth $331,429,000 after acquiring an additional 284,587 shares during the period. Invesco Ltd. lifted its stake in shares of BorgWarner by 10.2% in the 4th quarter. Invesco Ltd. now owns 6,795,020 shares of the auto parts company's stock worth $216,014,000 after acquiring an additional 628,930 shares during the period. LSV Asset Management lifted its stake in shares of BorgWarner by 36.7% in the 1st quarter. LSV Asset Management now owns 5,889,080 shares of the auto parts company's stock worth $168,722,000 after acquiring an additional 1,580,935 shares during the period. Turtle Creek Asset Management Inc. lifted its stake in shares of BorgWarner by 7.0% in the 4th quarter. Turtle Creek Asset Management Inc. now owns 4,078,780 shares of the auto parts company's stock worth $129,664,000 after acquiring an additional 267,250 shares during the period. Finally, Earnest Partners LLC lifted its stake in shares of BorgWarner by 0.7% in the 4th quarter. Earnest Partners LLC now owns 3,927,415 shares of the auto parts company's stock worth $124,853,000 after acquiring an additional 27,960 shares during the period. Institutional investors own 95.67% of the company's stock.

BorgWarner Company Profile

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.

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