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

Shares of BorgWarner Inc. (NYSE:BWA) have earned an average rating of “Moderate Buy” from the sixteen analysts that are currently covering the stock, Marketbeat.com reports. Six research analysts have rated the stock with a hold recommendation and ten have issued a buy recommendation on the company. The average twelve-month target price among brokerages that have issued a report on the stock in the last year is $39.6429.

BWA has been the subject of a number of recent research reports. Wells Fargo & Company boosted their price target on shares of BorgWarner from $45.00 to $46.00 and gave the stock an “overweight” rating in a research note on Friday, August 1st. Wall Street Zen raised shares of BorgWarner from a “buy” rating to a “strong-buy” rating in a research note on Saturday, July 12th. Bank of America boosted their price target on shares of BorgWarner from $35.00 to $41.00 and gave the stock a “buy” rating in a research note on Monday, June 16th. Robert W. Baird boosted their price target on shares of BorgWarner from $32.00 to $39.00 and gave the stock a “neutral” rating in a research note on Friday, July 11th. Finally, Barclays reissued an “overweight” rating and set a $45.00 price target (up from $42.00) on shares of BorgWarner in a research note on Wednesday, July 16th.

BorgWarner Trading Up 0.6%

Shares of NYSE BWA opened at $43.3950 on Tuesday. BorgWarner has a 1-year low of $24.40 and a 1-year high of $43.63. The company has a market cap of $9.39 billion, a PE ratio of 46.17, a P/E/G ratio of 1.30 and a beta of 1.10. The company has a current ratio of 2.02, a quick ratio of 1.66 and a debt-to-equity ratio of 0.64. The company has a 50-day moving average of $36.66 and a two-hundred day moving average of $32.17.

BorgWarner (NYSE:BWA) last announced its earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share for the quarter, topping analysts’ consensus estimates of $1.06 by $0.15. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. The company had revenue of $3.64 billion during the quarter, compared to the consensus estimate of $3.56 billion. During the same period in the previous year, the firm posted $1.19 earnings per share. The company’s revenue was up 1.0% on a year-over-year basis. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. As a group, equities analysts expect that BorgWarner will post 4.28 earnings per share for the current fiscal year.

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

BorgWarner Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Tuesday, September 2nd 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%. This is an increase from BorgWarner’s previous quarterly dividend of $0.11. BorgWarner’s payout ratio is 46.81%.

Insider Activity at BorgWarner

In other BorgWarner news, VP Isabelle Mckenzie sold 2,500 shares of the company’s stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $40.01, for a total value of $100,025.00. Following the completion of the sale, the vice president owned 55,945 shares of the company’s stock, valued at approximately $2,238,359.45. This represents a 4.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Stefan Demmerle sold 5,000 shares of the company’s 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 completion of the sale, the vice president directly owned 229,040 shares of the company’s stock, valued at $9,276,120. The trade was a 2.14% decrease in their position. The disclosure for this sale can be found here. Insiders sold 22,500 shares of company stock valued at $892,175 in the last ninety days. Insiders own 0.63% of the company’s stock.

Institutional Investors Weigh In On BorgWarner

Several large investors have recently bought and sold shares of BWA. Marshall Wace LLP increased its stake in BorgWarner by 373.9% in the fourth quarter. Marshall Wace LLP now owns 31,734 shares of the auto parts company’s stock valued at $1,009,000 after purchasing an additional 25,037 shares in the last quarter. Pinebridge Investments L.P. bought a new stake in BorgWarner in the fourth quarter valued at approximately $1,044,000. Adage Capital Partners GP L.L.C. increased its stake in BorgWarner by 111.6% in the fourth quarter. Adage Capital Partners GP L.L.C. now owns 454,306 shares of the auto parts company’s stock valued at $14,442,000 after purchasing an additional 239,600 shares in the last quarter. Aquatic Capital Management LLC bought a new stake in BorgWarner in the fourth quarter valued at approximately $1,062,000. Finally, Quarry LP boosted its holdings in shares of BorgWarner by 110.6% in the fourth quarter. Quarry LP now owns 1,826 shares of the auto parts company’s stock valued at $58,000 after buying an additional 959 shares during the period. Institutional investors own 95.67% of the company’s stock.

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.