Zacks Research Forecasts BorgWarner’s Q3 Earnings (NYSE:BWA)

BorgWarner Inc. (NYSE:BWA) – Research analysts at Zacks Research upped their Q3 2026 earnings per share estimates for BorgWarner in a note issued to investors on Thursday, November 20th. Zacks Research analyst Team now forecasts that the auto parts company will post earnings of $1.16 per share for the quarter, up from their previous estimate of $1.15. Zacks Research currently has a “Hold” rating on the stock. The consensus estimate for BorgWarner’s current full-year earnings is $4.28 per share. Zacks Research also issued estimates for BorgWarner’s FY2026 earnings at $4.66 EPS, Q1 2027 earnings at $1.19 EPS, Q3 2027 earnings at $1.26 EPS and FY2027 earnings at $4.98 EPS.

BWA has been the topic of several other research reports. UBS Group raised their price target on BorgWarner from $43.00 to $46.00 and gave the company a “neutral” rating in a report on Monday, October 6th. Wells Fargo & Company increased their price target on shares of BorgWarner from $50.00 to $54.00 and gave the stock an “overweight” rating in a report on Thursday, September 25th. Barclays upped their target price on shares of BorgWarner from $45.00 to $55.00 and gave the stock an “overweight” rating in a research report on Friday, October 10th. Morgan Stanley raised their price target on BorgWarner from $40.00 to $42.00 and gave the company an “overweight” rating in a research report on Tuesday, August 12th. Finally, Robert W. Baird set a $54.00 price target on BorgWarner in a research note on Friday, October 31st. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $45.85.

BorgWarner Trading Up 4.8%

Shares of BorgWarner stock opened at $42.94 on Monday. The company’s 50-day moving average price is $43.61 and its 200-day moving average price is $39.03. The company has a market cap of $9.19 billion, a price-to-earnings ratio of 45.68, a PEG ratio of 1.58 and a beta of 1.06. BorgWarner has a 12-month low of $24.40 and a 12-month high of $46.39. The company has a current ratio of 2.02, a quick ratio of 1.66 and a debt-to-equity ratio of 0.64.

BorgWarner (NYSE:BWA) last issued its quarterly earnings data on Thursday, October 30th. The auto parts company reported $1.24 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.16 by $0.08. The business had revenue of $3.59 billion for the quarter, compared to analysts’ expectations of $3.58 billion. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%.The firm’s quarterly revenue was up 4.1% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.09 EPS. BorgWarner has set its FY 2025 guidance at 4.600-4.750 EPS.

Institutional Investors Weigh In On BorgWarner

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in BWA. Vanguard Group Inc. grew its holdings in BorgWarner by 2.5% in the 3rd quarter. Vanguard Group Inc. now owns 27,578,374 shares of the auto parts company’s stock worth $1,212,345,000 after acquiring an additional 667,788 shares during the last quarter. Dimensional Fund Advisors LP grew its stake in shares of BorgWarner by 1.3% in the third quarter. Dimensional Fund Advisors LP now owns 11,782,629 shares of the auto parts company’s stock worth $517,960,000 after purchasing an additional 155,871 shares during the last quarter. State Street Corp increased its holdings in BorgWarner by 5.3% during the 2nd quarter. State Street Corp now owns 7,633,760 shares of the auto parts company’s stock valued at $255,578,000 after purchasing an additional 380,942 shares during the period. AQR Capital Management LLC raised 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 valued at $330,525,000 after purchasing an additional 4,095,902 shares during the last quarter. Finally, LSV Asset Management raised its position in BorgWarner by 4.7% during the 3rd quarter. LSV Asset Management now owns 6,043,654 shares of the auto parts company’s stock valued at $265,679,000 after purchasing an additional 272,387 shares during the last quarter. 95.67% of the stock is currently owned by institutional investors.

Insider Transactions at BorgWarner

In other BorgWarner news, Director Alexis P. Michas sold 8,772 shares of BorgWarner stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $42.31, for a total value of $371,143.32. Following the transaction, the director directly owned 78,903 shares of the company’s stock, valued at $3,338,385.93. The trade was a 10.01% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Isabelle Mckenzie sold 3,200 shares of the business’s stock in a transaction that occurred on Tuesday, November 4th. The shares were sold at an average price of $44.23, for a total value of $141,536.00. Following the completion of the sale, the vice president owned 43,555 shares of the company’s stock, valued at $1,926,437.65. The trade was a 6.84% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 31,972 shares of company stock worth $1,425,479. Company insiders own 0.45% of the company’s stock.

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

BorgWarner Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, December 15th. Stockholders of record on Monday, December 1st will be paid a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date of this dividend is Monday, December 1st. BorgWarner’s dividend payout ratio (DPR) is 107.94%.

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.