BorgWarner Inc. (NYSE:BWA) Sees Large Decrease in Short Interest

BorgWarner Inc. (NYSE:BWA) was the target of a significant decline in short interest during the month of February. As of February 13th, there was short interest totaling 7,526,989 shares, a decline of 35.2% from the January 29th total of 11,612,381 shares. Approximately 3.7% of the company’s stock are sold short. Based on an average trading volume of 5,205,906 shares, the days-to-cover ratio is currently 1.4 days. Based on an average trading volume of 5,205,906 shares, the days-to-cover ratio is currently 1.4 days. Approximately 3.7% of the company’s stock are sold short.

Insider Buying and Selling

In related news, VP Isabelle Mckenzie sold 2,458 shares of the stock in a transaction that occurred on Wednesday, February 18th. The stock was sold at an average price of $61.54, for a total transaction of $151,265.32. Following the completion of the transaction, the vice president directly owned 66,351 shares of the company’s stock, valued at approximately $4,083,240.54. This represents a 3.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Tonit M. Calaway sold 9,725 shares of the business’s stock in a transaction that occurred on Wednesday, February 18th. The stock was sold at an average price of $62.61, for a total value of $608,882.25. Following the transaction, the executive vice president directly owned 230,526 shares in the company, valued at $14,433,232.86. This trade represents a 4.05% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 49,550 shares of company stock worth $3,156,141. Corporate insiders own 0.45% of the company’s stock.

Institutional Trading of BorgWarner

Several large investors have recently modified their holdings of BWA. Commonwealth of Pennsylvania Public School Empls Retrmt SYS lifted its stake in BorgWarner by 7.8% during the second quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 56,411 shares of the auto parts company’s stock worth $1,889,000 after purchasing an additional 4,078 shares during the last quarter. CWM LLC raised its holdings in shares of BorgWarner by 218.3% during the 3rd quarter. CWM LLC now owns 235,861 shares of the auto parts company’s stock worth $10,368,000 after buying an additional 161,755 shares in the last quarter. Jackson Creek Investment Advisors LLC bought a new stake in shares of BorgWarner during the 3rd quarter worth $1,876,000. Columbia Bank bought a new position in BorgWarner in the second quarter valued at about $239,000. Finally, Ritholtz Wealth Management acquired a new position in BorgWarner during the third quarter worth about $1,016,000. 95.67% of the stock is owned by institutional investors and hedge funds.

BorgWarner Stock Performance

Shares of BorgWarner stock traded down $0.37 during trading on Friday, reaching $57.54. The company’s stock had a trading volume of 3,519,016 shares, compared to its average volume of 4,239,364. The company has a quick ratio of 1.70, a current ratio of 2.07 and a debt-to-equity ratio of 0.69. The business’s 50-day moving average price is $51.26 and its 200-day moving average price is $46.18. BorgWarner has a 52 week low of $24.40 and a 52 week high of $70.08. The firm has a market cap of $11.91 billion, a PE ratio of 46.03, a P/E/G ratio of 1.16 and a beta of 1.09.

BorgWarner (NYSE:BWA) last issued its quarterly earnings data on Wednesday, February 11th. The auto parts company reported $1.35 earnings per share for the quarter, topping the consensus estimate of $1.16 by $0.19. BorgWarner had a net margin of 1.93% and a return on equity of 17.89%. The business had revenue of $3.57 billion during the quarter, compared to analysts’ expectations of $3.49 billion. During the same quarter in the previous year, the company earned $1.01 EPS. The business’s revenue was up 3.9% on a year-over-year basis. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. Equities analysts forecast that BorgWarner will post 4.28 earnings per share for the current year.

BorgWarner Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, March 16th. Investors of record on Monday, March 2nd will be given a dividend of $0.17 per share. The ex-dividend date of this dividend is Monday, March 2nd. This represents a $0.68 dividend on an annualized basis and a yield of 1.2%. BorgWarner’s dividend payout ratio is currently 54.40%.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on BWA shares. New Street Research set a $66.00 price objective on shares of BorgWarner in a research report on Thursday, February 12th. Wells Fargo & Company boosted their price target on BorgWarner from $52.00 to $75.00 and gave the stock an “overweight” rating in a research report on Thursday, February 12th. Morgan Stanley set a $60.00 price objective on BorgWarner in a research report on Thursday, February 12th. UBS Group downgraded BorgWarner from a “neutral” rating to a “sell” rating and lifted their target price for the stock from $49.00 to $55.00 in a research note on Friday, February 20th. Finally, Robert W. Baird set a $76.00 price target on BorgWarner in a research note on Thursday, February 12th. Eight investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $59.14.

BorgWarner Company Profile

BorgWarner Inc is a global automotive supplier specializing in propulsion and drivetrain solutions for combustion, hybrid and electric vehicles. The company’s product portfolio includes turbochargers, thermal management systems, transmission components, e-Propulsion modules and advanced fuel-efficiency technologies. BorgWarner serves original equipment manufacturers (OEMs) across passenger cars, light trucks and commercial vehicles, supporting both legacy internal-combustion engines and emerging electrification trends.

Founded in 1928 through the merger of several driveline companies, BorgWarner has grown through strategic acquisitions and continuous investment in research and development.