BorgWarner (NYSE:BWA) Sees Unusually-High Trading Volume After Earnings Beat

Shares of BorgWarner Inc. (NYSE:BWA) saw unusually-high trading volume on Wednesday after the company announced better than expected quarterly earnings. Approximately 2,857,317 shares were traded during trading, an increase of 33% from the previous session’s volume of 2,142,320 shares.The stock last traded at $65.2570 and had previously closed at $53.98.

The auto parts company reported $1.35 earnings per share for the quarter, topping analysts’ consensus estimates of $1.16 by $0.19. The firm had revenue of $3.57 billion for the quarter, compared to analyst estimates of $3.49 billion. BorgWarner had a net margin of 1.93% and a return on equity of 17.89%. The business’s quarterly revenue was up 3.9% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.01 earnings per share. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS.

BorgWarner Announces Dividend

The business also recently disclosed 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 is Monday, March 2nd. This represents a $0.68 dividend on an annualized basis and a yield of 1.0%. BorgWarner’s dividend payout ratio (DPR) is presently 107.94%.

BorgWarner News Summary

Here are the key news stories impacting BorgWarner this week:

• Positive Sentiment: JPMorgan raised its price target on BWA from $56 to $76 and moved the stock to “overweight,” implying meaningful upside and likely supporting further buying interest. JPMorgan Price Target Raise
• Positive Sentiment: Q4 results beat expectations — EPS $1.35 vs $1.16 est., revenue $3.57B vs $3.49B — and management highlighted margin gains and program wins during the earnings call, reinforcing momentum from the quarter. Reuters: Quarterly Profit Rises
• Positive Sentiment: Multiple OEM awards announced (800V integrated drive modules, expanded BMS production, first 48V eXD program, VTG turbocharger, and a major North American iDM/generator program) signal sustained revenue runway from both electrified and hybrid platforms. PR Newswire: 2025 Results & Awards
• Positive Sentiment: BorgWarner entered the data‑center market via a Master Supply Agreement to supply modular turbine generator systems — a new end market that analysts highlight as a material incremental growth opportunity. PR Newswire: Data Center Award
• Positive Sentiment: The company returned about $630M to shareholders in 2025, underscoring cash generation and capital allocation that can support buybacks/dividend support for the stock. PR Newswire: Return of Capital
• Neutral Sentiment: Analyst and commentary pieces (Zacks, TipRanks, Seeking Alpha) highlight BWA as a momentum/turnaround story with structural EV and powertrain exposure — useful context but largely reiterative of the company’s stated strategy. Zacks: Momentum Stock
• Neutral Sentiment: Detailed earnings call materials and transcripts were published (slides, call transcript); these provide line‑item detail for investors but do not change the headline beat. Seeking Alpha: Earnings Call Transcript
• Negative Sentiment: Management issued FY‑2026 guidance that was modestly soft vs. consensus: EPS guidance of $5.00–$5.20 (vs ~5.11 consensus) and revenue guidance of $14.0–$14.3B (below ~$14.4B consensus). Analysts flagged the softer revenue outlook as a possible constraint on multiple expansion. Seeking Alpha: Soft FY26 Guidance

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on BWA. Weiss Ratings reissued a “hold (c)” rating on shares of BorgWarner in a research report on Wednesday, January 21st. Robert W. Baird set a $76.00 price target on shares of BorgWarner in a research report on Thursday. Morgan Stanley set a $60.00 price objective on BorgWarner in a research report on Thursday. UBS Group increased their price objective on BorgWarner from $46.00 to $49.00 and gave the company a “neutral” rating in a research note on Wednesday, January 14th. Finally, New Street Research set a $66.00 target price on BorgWarner in a research note on Thursday. Eight equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $57.14.

Institutional Trading of BorgWarner

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Advisors Asset Management Inc. lifted its holdings in shares of BorgWarner by 1.9% in the 4th quarter. Advisors Asset Management Inc. now owns 19,599 shares of the auto parts company’s stock valued at $883,000 after buying an additional 363 shares during the period. Johnson Financial Group Inc. raised its position in BorgWarner by 15.2% during the fourth quarter. Johnson Financial Group Inc. now owns 29,672 shares of the auto parts company’s stock worth $1,337,000 after acquiring an additional 3,926 shares during the last quarter. HRT Financial LP lifted its stake in BorgWarner by 272.2% in the 4th quarter. HRT Financial LP now owns 605,113 shares of the auto parts company’s stock valued at $27,266,000 after buying an additional 442,545 shares in the last quarter. MetLife Investment Management LLC lifted its stake in shares of BorgWarner by 2,775.7% during the fourth quarter. MetLife Investment Management LLC now owns 104,503 shares of the auto parts company’s stock valued at $4,709,000 after buying an additional 100,869 shares during the period. Finally, Renaissance Technologies LLC boosted its position in shares of BorgWarner by 14.1% in the fourth quarter. Renaissance Technologies LLC now owns 218,398 shares of the auto parts company’s stock worth $9,841,000 after acquiring an additional 27,000 shares during the last quarter. 95.67% of the stock is owned by hedge funds and other institutional investors.

BorgWarner Trading Up 0.4%

The business has a fifty day moving average price of $47.73 and a 200 day moving average price of $44.39. The firm has a market capitalization of $14.20 billion, a price-to-earnings ratio of 53.12, a P/E/G ratio of 1.31 and a beta of 1.09. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.69 and a current ratio of 2.07.

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.