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 $46.00 to $50.00, indicating a potential upside of 12.57% from the current price, and maintaining an "overweight" rating.
• Multiple analysts have also increased their price objectives for BorgWarner, with a range now spanning from $38.00 to $50.00, suggesting a generally positive outlook across the board.
• BorgWarner's board has authorized a $1.00 billion stock repurchase plan, suggesting confidence in the company's valuation amidst recent stock sales by insiders.

BorgWarner (NYSE:BWA - Get Free Report) had its price objective hoisted by analysts at Wells Fargo & Company from $46.00 to $50.00 in a note issued to investors on Tuesday,Benzinga reports. The firm presently has an "overweight" rating on the auto parts company's stock. Wells Fargo & Company's price target indicates a potential upside of 12.57% from the company's current price.

Other equities analysts also recently issued reports about the stock. JPMorgan Chase & Co. upped their price objective on shares of BorgWarner from $43.00 to $45.00 and gave the company an "overweight" rating in a report on Monday, August 4th. UBS Group increased their target price on BorgWarner from $35.00 to $38.00 and gave the stock a "neutral" rating in a report on Monday, July 14th. Wall Street Zen raised BorgWarner from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 12th. Evercore ISI lifted their target price on BorgWarner from $38.00 to $42.00 and gave the company an "outperform" rating in a report on Monday, August 4th. Finally, Bank of America boosted their target price on BorgWarner from $35.00 to $41.00 and gave the stock a "buy" rating in a research report on Monday, June 16th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, BorgWarner currently has a consensus rating of "Moderate Buy" and a consensus target price of $40.86.

BorgWarner Stock Up 0.9%

Shares of NYSE:BWA opened at $44.42 on Tuesday. The company has a 50 day moving average of $38.68 and a 200-day moving average of $33.12. BorgWarner has a one year low of $24.40 and a one year high of $44.45. The stock has a market cap of $9.61 billion, a price-to-earnings ratio of 47.25, a P/E/G 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 released its quarterly earnings data on Thursday, July 31st. The auto parts company reported $1.21 earnings per share for the quarter, topping the consensus estimate of $1.06 by $0.15. The business had revenue of $3.64 billion for the quarter, compared to analyst estimates of $3.56 billion. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. BorgWarner's quarterly revenue was up 1.0% compared to the same quarter last year. During the same quarter last year, the firm earned $1.19 EPS. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. On average, sell-side analysts forecast that BorgWarner will post 4.28 earnings per share for the current year.

BorgWarner declared that its board has authorized a stock repurchase plan on Thursday, July 31st that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the auto parts company to buy up to 13.2% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's board of directors believes its stock is undervalued.

Insider Activity

In related news, VP Isabelle Mckenzie sold 2,500 shares of the firm's stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $40.01, for a total transaction of $100,025.00. Following the completion of the sale, the vice president directly owned 55,945 shares of the company's stock, valued at approximately $2,238,359.45. This trade represents a 4.28% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Alexis P. Michas sold 8,772 shares of the firm's stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $42.31, for a total value of $371,143.32. Following the sale, the director directly owned 78,903 shares of the company's stock, valued at $3,338,385.93. This represents a 10.01% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 31,272 shares of company stock valued at $1,263,318 in the last ninety days. Insiders own 0.45% of the company's stock.

Institutional Investors Weigh In On BorgWarner

A number of institutional investors and hedge funds have recently modified their holdings of BWA. Dimensional Fund Advisors LP increased its holdings in BorgWarner by 2.5% during 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 purchasing an additional 284,587 shares during the period. State Street Corp increased its holdings in 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. LSV Asset Management increased its holdings in BorgWarner by 36.7% during the 1st quarter. LSV Asset Management now owns 5,889,080 shares of the auto parts company's stock worth $168,722,000 after purchasing an additional 1,580,935 shares during the period. Turtle Creek Asset Management Inc. increased its holdings in BorgWarner by 7.0% during 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 purchasing an additional 267,250 shares during the period. Finally, American Century Companies Inc. increased its holdings in BorgWarner by 1.6% during the 2nd quarter. American Century Companies Inc. now owns 3,774,828 shares of the auto parts company's stock worth $126,381,000 after purchasing an additional 58,252 shares during the period. 95.67% of the stock is owned by institutional investors.

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.

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