BorgWarner (NYSE:BWA) Reaches New 1-Year High – Should You Buy?

BorgWarner Inc. (NYSE:BWA) shares reached a new 52-week high during trading on Friday . The company traded as high as $44.86 and last traded at $44.80, with a volume of 91336 shares changing hands. The stock had previously closed at $44.42.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on BWA. The Goldman Sachs Group boosted their target price on shares of BorgWarner from $45.00 to $52.00 and gave the company a “buy” rating in a research note on Monday, September 29th. Zacks Research raised shares of BorgWarner from a “hold” rating to a “strong-buy” rating in a research report on Friday, September 12th. Weiss Ratings reissued a “hold (c)” rating on shares of BorgWarner in a research note on Saturday, September 27th. Wells Fargo & Company boosted their price target on BorgWarner from $50.00 to $54.00 and gave the company an “overweight” rating in a report on Thursday, September 25th. Finally, Piper Sandler raised their price objective on BorgWarner from $37.00 to $44.00 and gave the stock an “overweight” rating in a report on Friday, August 1st. Two equities research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, BorgWarner presently has a consensus rating of “Moderate Buy” and a consensus target price of $42.79.

BorgWarner Price Performance

The company has a market cap of $9.69 billion, a PE ratio of 47.62, a P/E/G ratio of 1.47 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. The company has a 50-day moving average price of $41.91 and a two-hundred day moving average price of $35.04.

BorgWarner (NYSE:BWA) last released its quarterly 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. The firm had revenue of $3.64 billion during the quarter, compared to analysts’ expectations of $3.56 billion. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%.BorgWarner’s quarterly revenue was up 1.0% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.19 EPS. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. Sell-side analysts expect that BorgWarner Inc. will post 4.28 earnings per share for the current fiscal year.

BorgWarner Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd were issued a $0.17 dividend. The ex-dividend date was Tuesday, September 2nd. This represents a $0.68 dividend on an annualized basis and a yield of 1.5%. This is an increase from BorgWarner’s previous quarterly dividend of $0.11. BorgWarner’s dividend payout ratio (DPR) is presently 72.34%.

BorgWarner declared that its board has approved a stock buyback program on Thursday, July 31st that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the auto parts company to reacquire up to 13.2% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s board believes its stock is undervalued.

Insider Buying and Selling at BorgWarner

In related news, VP Stefan Demmerle sold 15,000 shares of BorgWarner stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $39.31, for a total value of $589,650.00. Following the completion of the sale, the vice president owned 234,040 shares in the company, valued at approximately $9,200,112.40. The trade was a 6.02% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, VP Isabelle Mckenzie sold 2,500 shares of the stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $40.01, for a total transaction of $100,025.00. Following the transaction, the vice president owned 55,945 shares in the company, valued at $2,238,359.45. This trade represents a 4.28% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 31,272 shares of company stock valued at $1,263,318 in the last three months. Corporate insiders own 0.45% of the company’s stock.

Hedge Funds Weigh In On BorgWarner

Several large investors have recently modified their holdings of BWA. New York State Teachers Retirement System increased its holdings in BorgWarner by 3.8% in the first quarter. New York State Teachers Retirement System now owns 219,180 shares of the auto parts company’s stock valued at $6,280,000 after buying an additional 7,977 shares during the last quarter. Avantax Advisory Services Inc. lifted its stake in BorgWarner by 13.3% during the first quarter. Avantax Advisory Services Inc. now owns 13,258 shares of the auto parts company’s stock worth $380,000 after purchasing an additional 1,555 shares during the last quarter. Sage Rhino Capital LLC bought a new position in BorgWarner during the first quarter worth $235,000. Brown Advisory Inc. bought a new stake in BorgWarner during the first quarter valued at $522,000. Finally, Pallas Capital Advisors LLC acquired a new stake in shares of BorgWarner during the second quarter worth $567,000. 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.