BorgWarner Inc. (NYSE:BWA) Receives Average Recommendation of “Moderate Buy” from Analysts

Shares of BorgWarner Inc. (NYSE:BWA) have received an average rating of “Moderate Buy” from the eighteen research firms that are currently covering the stock, MarketBeat.com reports. Seven research analysts have rated the stock with a hold rating, ten have given a buy rating and one has given a strong buy rating to the company. The average 12 month target price among analysts that have covered the stock in the last year is $45.2143.

A number of analysts have commented on BWA shares. Wells Fargo & Company upped their price target on BorgWarner from $50.00 to $54.00 and gave the stock an “overweight” rating in a research report on Thursday, September 25th. The Goldman Sachs Group upped their price objective on BorgWarner from $45.00 to $52.00 and gave the stock a “buy” rating in a research note on Monday, September 29th. Evercore ISI upped their price objective on BorgWarner from $42.00 to $50.00 and gave the stock an “outperform” rating in a research note on Monday, October 13th. Bank of America lowered BorgWarner from a “buy” rating to a “neutral” rating and increased their price target for the company from $41.00 to $46.00 in a research note on Wednesday, September 10th. Finally, Wall Street Zen raised BorgWarner from a “buy” rating to a “strong-buy” rating in a research note on Saturday, July 12th.

BorgWarner Stock Up 1.9%

BorgWarner stock opened at $43.78 on Wednesday. The stock has a market cap of $9.47 billion, a PE ratio of 46.57, a price-to-earnings-growth ratio of 1.59 and a beta of 1.09. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.66 and a current ratio of 2.02. BorgWarner has a one year low of $24.40 and a one year high of $44.97. The stock has a fifty day moving average of $43.12 and a 200 day moving average of $36.20.

BorgWarner (NYSE:BWA) last posted its quarterly earnings data on Thursday, July 31st. The auto parts company reported $1.21 EPS for the quarter, beating analysts’ consensus estimates of $1.06 by $0.15. The company 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 revenue for the quarter was up 1.0% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.19 earnings per share. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. As a group, sell-side analysts predict that BorgWarner will post 4.28 EPS for the current year.

BorgWarner declared that its Board of Directors has approved a share 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 repurchase up to 13.2% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s management believes its shares are undervalued.

BorgWarner Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, September 15th. Investors of record on Tuesday, September 2nd were paid a dividend of $0.17 per share. The ex-dividend date of this dividend was Tuesday, September 2nd. This is a boost from BorgWarner’s previous quarterly dividend of $0.11. This represents a $0.68 dividend on an annualized basis and a yield of 1.6%. BorgWarner’s dividend payout ratio is currently 72.34%.

Insider Activity at BorgWarner

In related news, VP Stefan Demmerle sold 15,000 shares of the stock in a transaction that occurred on Tuesday, August 12th. The stock was 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 directly owned 234,040 shares of the company’s stock, valued at approximately $9,200,112.40. This represents 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 that occurred on Tuesday, August 12th. The shares were sold at an average price of $40.01, for a total value of $100,025.00. Following the transaction, the vice president directly owned 55,945 shares of the company’s stock, valued at approximately $2,238,359.45. The trade was a 4.28% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 31,272 shares of company stock valued at $1,263,318. Insiders own 0.63% of the company’s stock.

Institutional Investors Weigh In On BorgWarner

Several institutional investors have recently modified their holdings of the stock. Fifth Third Wealth Advisors LLC lifted its stake in shares of BorgWarner by 4.1% in the 3rd quarter. Fifth Third Wealth Advisors LLC now owns 6,832 shares of the auto parts company’s stock valued at $300,000 after purchasing an additional 272 shares during the last quarter. Financiere des Professionnels Fonds d investissement inc. bought a new stake in shares of BorgWarner in the 3rd quarter valued at approximately $966,000. Bell Bank bought a new stake in shares of BorgWarner in the 3rd quarter valued at approximately $229,000. PDS Planning Inc bought a new stake in shares of BorgWarner in the 3rd quarter valued at approximately $224,000. Finally, Generali Asset Management SPA SGR lifted its stake in shares of BorgWarner by 35.2% in the 3rd quarter. Generali Asset Management SPA SGR now owns 2,111 shares of the auto parts company’s stock valued at $93,000 after purchasing an additional 550 shares during the last quarter. 95.67% of the stock is owned by institutional investors.

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.