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

BorgWarner Inc. (NYSE:BWA) has received a consensus recommendation of “Moderate Buy” from the eighteen brokerages that are currently covering the stock, Marketbeat Ratings reports. Seven analysts have rated the stock with a hold rating, ten have assigned a buy rating and one has given a strong buy rating to the company. The average 1 year target price among analysts that have updated their coverage on the stock in the last year is $44.6429.

Several research analysts have recently weighed in on the stock. Evercore ISI lifted their price target on shares of BorgWarner from $42.00 to $50.00 and gave the stock an “outperform” rating in a research note on Monday, October 13th. Barclays lifted their price target on shares of BorgWarner from $45.00 to $55.00 and gave the stock an “overweight” rating in a research note on Friday, October 10th. Zacks Research cut shares of BorgWarner from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 13th. UBS Group lifted their price target on shares of BorgWarner from $43.00 to $46.00 and gave the stock a “neutral” rating in a research note on Monday, October 6th. Finally, Wells Fargo & Company lifted their price target on shares of BorgWarner from $50.00 to $54.00 and gave the company an “overweight” rating in a report on Thursday, September 25th.

BorgWarner Trading Down 0.6%

Shares of NYSE BWA opened at $42.57 on Wednesday. The firm’s 50 day moving average price is $42.96 and its 200-day moving average price is $36.03. The company has a market cap of $9.21 billion, a PE ratio of 45.29, a P/E/G ratio of 1.57 and a beta of 1.09. BorgWarner has a 52-week low of $24.40 and a 52-week high of $44.97. 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 (NYSE:BWA) last announced its quarterly earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.06 by $0.15. The firm had revenue of $3.64 billion for the quarter, compared to the consensus estimate of $3.56 billion. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. The business’s quarterly revenue was up 1.0% compared to the same quarter last year. During the same quarter last year, the firm posted $1.19 EPS. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. On average, equities research analysts expect that BorgWarner will post 4.28 EPS for the current fiscal year.

BorgWarner Increases Dividend

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

BorgWarner announced that its Board of Directors has initiated a share buyback program on Thursday, July 31st that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the auto parts company to repurchase up to 13.2% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board of directors believes its stock is undervalued.

Insider Activity

In other news, VP Stefan Demmerle sold 5,000 shares of BorgWarner stock in a transaction that occurred on Wednesday, August 13th. The shares were sold at an average price of $40.50, for a total transaction of $202,500.00. Following the sale, the vice president owned 229,040 shares in the company, valued at $9,276,120. This trade represents a 2.14% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Alexis P. Michas sold 8,772 shares of BorgWarner stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $42.31, for a total transaction of $371,143.32. Following the sale, the director owned 78,903 shares in the company, valued at approximately $3,338,385.93. The trade was a 10.01% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 31,272 shares of company stock worth $1,263,318 over the last quarter. Insiders own 0.63% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of BWA. Global X Japan Co. Ltd. grew its holdings in shares of BorgWarner by 133.4% in the first quarter. Global X Japan Co. Ltd. now owns 915 shares of the auto parts company’s stock worth $26,000 after purchasing an additional 523 shares during the last quarter. Caitong International Asset Management Co. Ltd grew its holdings in shares of BorgWarner by 1,133.3% in the second quarter. Caitong International Asset Management Co. Ltd now owns 777 shares of the auto parts company’s stock worth $26,000 after purchasing an additional 714 shares during the last quarter. Assetmark Inc. grew its holdings in shares of BorgWarner by 81.8% in the second quarter. Assetmark Inc. now owns 809 shares of the auto parts company’s stock worth $27,000 after purchasing an additional 364 shares during the last quarter. Addison Advisors LLC grew its holdings in shares of BorgWarner by 1,647.8% in the second quarter. Addison Advisors LLC now owns 804 shares of the auto parts company’s stock worth $27,000 after purchasing an additional 758 shares during the last quarter. Finally, Manchester Capital Management LLC bought a new position in shares of BorgWarner in the first quarter worth about $30,000. 95.67% of the stock is owned by hedge funds and other institutional investors.

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.