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

BorgWarner Inc. (NYSE:BWA) has been assigned an average recommendation of “Moderate Buy” from the fifteen analysts that are covering the stock, Marketbeat reports. Six research analysts have rated the stock with a hold recommendation and nine have assigned a buy recommendation to the company. The average 1 year target price among brokers that have updated their coverage on the stock in the last year is $74.5714.

A number of analysts recently commented on BWA shares. Wolfe Research reiterated an “outperform” rating and set a $95.00 price target on shares of BorgWarner in a report on Wednesday, June 3rd. The Goldman Sachs Group restated a “buy” rating and issued a $84.00 price objective on shares of BorgWarner in a research note on Thursday, June 11th. Wall Street Zen raised BorgWarner from a “hold” rating to a “buy” rating in a research report on Saturday, June 27th. Wells Fargo & Company lifted their target price on BorgWarner from $68.00 to $83.00 and gave the stock an “overweight” rating in a research note on Tuesday, June 2nd. Finally, TD Cowen raised their price objective on shares of BorgWarner from $66.00 to $67.00 and gave the stock a “hold” rating in a report on Thursday, May 7th.

BorgWarner Stock Up 3.2%

BorgWarner stock opened at $63.60 on Friday. BorgWarner has a fifty-two week low of $34.27 and a fifty-two week high of $78.82. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.75 and a current ratio of 2.13. The firm’s 50-day simple moving average is $68.03 and its 200 day simple moving average is $58.69. The stock has a market cap of $13.05 billion, a PE ratio of 37.63, a price-to-earnings-growth ratio of 1.32 and a beta of 1.09.

BorgWarner (NYSE:BWA) last posted its earnings results on Wednesday, May 6th. The auto parts company reported $1.24 EPS for the quarter, topping the consensus estimate of $1.16 by $0.08. BorgWarner had a net margin of 2.53% and a return on equity of 18.36%. The firm had revenue of $3.53 billion for the quarter, compared to analysts’ expectations of $3.50 billion. During the same quarter last year, the firm earned $1.11 EPS. The company’s quarterly revenue was up .5% compared to the same quarter last year. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. Research analysts predict that BorgWarner will post 5.16 EPS for the current fiscal year.

BorgWarner Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, June 15th. Investors of record on Monday, June 1st were issued a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend was Monday, June 1st. BorgWarner’s payout ratio is 40.24%.

Insider Transactions at BorgWarner

In other BorgWarner news, VP Isabelle Mckenzie sold 3,500 shares of the business’s stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $63.35, for a total value of $221,725.00. Following the sale, the vice president directly owned 57,828 shares in the company, valued at $3,663,403.80. The trade was a 5.71% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Joseph F. Fadool sold 29,000 shares of the company’s stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $67.31, for a total value of $1,951,990.00. Following the transaction, the chief executive officer directly owned 405,964 shares in the company, valued at $27,325,436.84. This represents a 6.67% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 67,500 shares of company stock worth $4,310,115 in the last ninety days. Company insiders own 0.76% of the company’s stock.

Institutional Investors Weigh In On BorgWarner

Several large investors have recently added to or reduced their stakes in BWA. Dimensional Fund Advisors LP raised its stake in BorgWarner by 1.5% in the 4th quarter. Dimensional Fund Advisors LP now owns 11,961,482 shares of the auto parts company’s stock valued at $538,996,000 after acquiring an additional 178,853 shares during the period. AQR Capital Management LLC boosted its position in BorgWarner by 22.7% during the fourth quarter. AQR Capital Management LLC now owns 9,222,352 shares of the auto parts company’s stock worth $415,559,000 after purchasing an additional 1,703,576 shares during the period. State Street Corp boosted its position in BorgWarner by 5.3% during the second quarter. State Street Corp now owns 7,633,760 shares of the auto parts company’s stock worth $255,578,000 after purchasing an additional 380,942 shares during the period. LSV Asset Management increased its stake in shares of BorgWarner by 6.7% in the fourth quarter. LSV Asset Management now owns 6,446,541 shares of the auto parts company’s stock worth $290,481,000 after purchasing an additional 402,887 shares in the last quarter. Finally, Geode Capital Management LLC increased its stake in shares of BorgWarner by 10.9% in the fourth quarter. Geode Capital Management LLC now owns 4,297,717 shares of the auto parts company’s stock worth $193,695,000 after purchasing an additional 423,933 shares in the last quarter. Hedge funds and other institutional investors own 95.67% of the company’s stock.

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.