BorgWarner (NYSE:BWA) Hits New 1-Year High – Here’s Why

Shares of BorgWarner Inc. (NYSE:BWA) hit a new 52-week high during trading on Wednesday . The stock traded as high as $44.99 and last traded at $44.9650, with a volume of 843469 shares trading hands. The stock had previously closed at $44.10.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on BWA shares. Zacks Research cut shares of BorgWarner from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 13th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of BorgWarner in a research report on Wednesday, October 8th. Wall Street Zen raised BorgWarner from a “buy” rating to a “strong-buy” rating in a research report on Saturday, July 12th. Baird R W upgraded shares of BorgWarner from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, September 3rd. Finally, Evercore ISI upped their price objective on shares of BorgWarner from $42.00 to $50.00 and gave the company an “outperform” rating in a research report on Monday, October 13th. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $45.85.

BorgWarner Stock Performance

The stock has a market capitalization of $9.61 billion, a price-to-earnings ratio of 47.75, a price-to-earnings-growth ratio of 1.58 and a beta of 1.06. The stock’s 50-day simple moving average is $43.40 and its 200 day simple moving average is $37.58. The company has a quick ratio of 1.66, a current ratio of 2.02 and a debt-to-equity ratio of 0.64.

BorgWarner (NYSE:BWA) last posted its quarterly earnings data on Thursday, October 30th. The auto parts company reported $1.24 EPS for the quarter, topping analysts’ consensus estimates of $1.16 by $0.08. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%.The company had revenue of $3.59 billion for the quarter, compared to analyst estimates of $3.58 billion. During the same quarter in the previous year, the firm earned $1.09 earnings per share. The business’s revenue was up 4.1% on a year-over-year basis. BorgWarner has set its FY 2025 guidance at 4.600-4.750 EPS. Analysts expect that BorgWarner Inc. will post 4.28 earnings per share for the current fiscal year.

BorgWarner announced that its board has approved a stock buyback plan on Thursday, July 31st that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the auto parts company to purchase up to 13.2% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board believes its shares are undervalued.

Insider Activity at BorgWarner

In other BorgWarner news, VP Isabelle Mckenzie sold 2,500 shares of the company’s stock in a transaction dated 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 directly owned 55,945 shares in the company, valued at approximately $2,238,359.45. This represents a 4.28% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, VP Stefan Demmerle sold 15,000 shares of the stock in a transaction that occurred on Tuesday, August 12th. The shares were 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 owned 234,040 shares in the company, valued at $9,200,112.40. This represents a 6.02% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 31,272 shares of company stock worth $1,263,318 over the last 90 days. Insiders own 0.63% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Caitong International Asset Management Co. Ltd boosted its position in shares of BorgWarner by 1,133.3% during the second quarter. Caitong International Asset Management Co. Ltd now owns 777 shares of the auto parts company’s stock worth $26,000 after buying an additional 714 shares during the period. Assetmark Inc. grew its position in BorgWarner by 81.8% in the second quarter. Assetmark Inc. now owns 809 shares of the auto parts company’s stock valued at $27,000 after purchasing an additional 364 shares in the last quarter. Addison Advisors LLC grew its position in BorgWarner by 1,647.8% in the second quarter. Addison Advisors LLC now owns 804 shares of the auto parts company’s stock valued at $27,000 after purchasing an additional 758 shares in the last quarter. Root Financial Partners LLC acquired a new stake in BorgWarner in the 3rd quarter valued at $27,000. Finally, Manchester Capital Management LLC bought a new stake in BorgWarner during the first quarter worth about $30,000. Institutional investors and hedge funds 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.