BorgWarner (NYSE:BWA) Rating Lowered to “Hold” at Wall Street Zen

BorgWarner (NYSE:BWA) was downgraded by analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

Several other brokerages have also commented on BWA. Morgan Stanley increased their price objective on BorgWarner from $67.00 to $71.00 and gave the company an “equal weight” rating in a research report on Thursday, August 6th. Deutsche Bank Aktiengesellschaft set a $80.00 price objective on BorgWarner in a report on Thursday, August 6th. TD Cowen boosted their target price on BorgWarner from $67.00 to $68.00 and gave the stock a “hold” rating in a research report on Thursday, August 6th. JPMorgan Chase & Co. upped their target price on BorgWarner from $75.00 to $85.00 and gave the stock an “overweight” rating in a research note on Monday, August 10th. Finally, Weiss Ratings reaffirmed a “hold (c+)” rating on shares of BorgWarner in a research note on Friday, September 25th. Ten research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat, BorgWarner currently has a consensus rating of “Moderate Buy” and a consensus price target of $79.00.

BorgWarner Stock Performance

NYSE BWA opened at $54.95 on Friday. BorgWarner has a 52-week low of $40.73 and a 52-week high of $78.82. The company has a debt-to-equity ratio of 0.67, a quick ratio of 1.76 and a current ratio of 2.13. The company has a market capitalization of $11.19 billion, a P/E ratio of 27.48, a P/E/G ratio of 0.81 and a beta of 1.16. The company has a fifty day moving average of $62.61 and a 200-day moving average of $63.82.

BorgWarner (NYSE:BWA) last announced its earnings results on Wednesday, August 5th. The auto parts company reported $1.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.28 by $0.14. The company had revenue of $3.65 billion during the quarter, compared to analyst estimates of $3.58 billion. BorgWarner had a net margin of 2.89% and a return on equity of 19.10%. The firm’s quarterly revenue was up .3% compared to the same quarter last year. During the same period in the previous year, the business earned $1.21 earnings per share. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. As a group, equities research analysts predict that BorgWarner will post 5.19 EPS for the current fiscal year.

BorgWarner declared that its Board of Directors has approved a share buyback program on Wednesday, August 5th that authorizes the company to buy back $1.00 billion in shares. This repurchase authorization authorizes the auto parts company to purchase up to 7.7% of its stock through open market purchases. Share repurchase programs are usually a sign that the company’s board believes its stock is undervalued.

Insiders Place Their Bets

In other BorgWarner news, Director Michael Hanley sold 5,000 shares of the business’s stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $65.51, for a total value of $327,550.00. Following the completion of the sale, the director owned 34,313 shares in the company, valued at approximately $2,247,844.63. The trade was a 12.72% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CAO Amy Kulikowski sold 2,900 shares of the business’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $68.60, for a total value of $198,940.00. Following the completion of the sale, the chief accounting officer owned 9,725 shares of the company’s stock, valued at $667,135. The trade was a 22.97% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 0.76% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Clearstead Trust LLC bought a new stake in BorgWarner during the 2nd quarter valued at $28,000. Ceredex Value Advisors LLC bought a new stake in BorgWarner in the 2nd quarter worth $40,000. Fiduciary Financial Advisors bought a new stake in BorgWarner in the 2nd quarter worth $49,000. Jones Financial Companies Lllp bought a new stake in BorgWarner in the 2nd quarter worth $57,000. Finally, Grove Bank & Trust increased its position in shares of BorgWarner by 4,304.3% in the second quarter. Grove Bank & Trust now owns 1,013 shares of the auto parts company’s stock valued at $67,000 after acquiring an additional 990 shares during the period. 95.67% of the stock is owned by hedge funds and other institutional investors.

About BorgWarner

BorgWarner Inc (NYSE:BWA) is a global automotive technology company that develops and manufactures propulsion and mobility systems for vehicle manufacturers and commercial vehicle customers. The company serves both internal-combustion and electrified vehicle markets, with a portfolio focused on improving vehicle efficiency, performance, emissions, and electrification.

Its products and technologies include turbochargers, emissions and thermal-management systems, transmission components, friction products, battery systems, battery charging equipment, power electronics, electric motors, and other electric-drive components.