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

BorgWarner Inc. (NYSE:BWA) has been given a consensus rating of “Moderate Buy” by the fifteen research firms that are currently covering the stock, MarketBeat reports. Seven equities research analysts have rated the stock with a hold recommendation and eight have issued a buy recommendation on the company. The average 1-year price target among brokerages that have covered the stock in the last year is $57.1429.

A number of equities analysts have commented on BWA shares. UBS Group boosted their price objective on BorgWarner from $46.00 to $49.00 and gave the stock a “neutral” rating in a research note on Wednesday, January 14th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of BorgWarner in a report on Wednesday, January 21st. Piper Sandler reissued a “neutral” rating and set a $51.00 price objective (down previously from $52.00) on shares of BorgWarner in a report on Thursday, January 8th. The Goldman Sachs Group boosted their target price on shares of BorgWarner from $54.00 to $78.00 and gave the stock a “buy” rating in a research note on Thursday. Finally, Wells Fargo & Company upped their target price on shares of BorgWarner from $52.00 to $75.00 and gave the stock an “overweight” rating in a research report on Thursday.

BorgWarner Price Performance

NYSE:BWA opened at $62.71 on Tuesday. 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 firm has a market cap of $12.98 billion, a PE ratio of 50.17, a price-to-earnings-growth ratio of 1.24 and a beta of 1.09. BorgWarner has a 12 month low of $24.40 and a 12 month high of $70.08. The company’s 50-day moving average price is $48.54 and its two-hundred day moving average price is $44.89.

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

BorgWarner Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, March 16th. Stockholders of record on Monday, March 2nd will be paid a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 1.1%. The ex-dividend date of this dividend is Monday, March 2nd. BorgWarner’s dividend payout ratio is 54.40%.

Hedge Funds Weigh In On BorgWarner

Several institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. grew its position in shares of BorgWarner by 2.5% in the 3rd quarter. Vanguard Group Inc. now owns 27,578,374 shares of the auto parts company’s stock valued at $1,212,345,000 after purchasing an additional 667,788 shares during the period. Dimensional Fund Advisors LP boosted its holdings in shares of BorgWarner by 1.5% in the fourth quarter. Dimensional Fund Advisors LP now owns 11,961,482 shares of the auto parts company’s stock valued at $538,996,000 after buying an additional 178,853 shares during the period. State Street Corp boosted its holdings in shares of BorgWarner by 5.3% in the second quarter. State Street Corp now owns 7,633,760 shares of the auto parts company’s stock valued at $255,578,000 after buying an additional 380,942 shares during the period. AQR Capital Management LLC boosted its position in BorgWarner by 119.7% during the 3rd quarter. AQR Capital Management LLC now owns 7,518,776 shares of the auto parts company’s stock worth $330,525,000 after acquiring an additional 4,095,902 shares during the last quarter. Finally, LSV Asset Management lifted its position in BorgWarner by 6.7% during the 4th quarter. LSV Asset Management now owns 6,446,541 shares of the auto parts company’s stock worth $290,481,000 after buying an additional 402,887 shares in the last quarter. 95.67% of the stock is currently owned by institutional investors and hedge funds.

About BorgWarner

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.