BorgWarner (NYSE:BWA) Upgraded at Robert W. Baird

Robert W. Baird upgraded shares of BorgWarner (NYSE:BWA) from a neutral rating to an outperform rating in a research note issued to investors on Wednesday morning, Marketbeat.com reports. They currently have $52.00 target price on the auto parts company’s stock, up from their previous target price of $41.00.

A number of other equities research analysts have also recently commented on BWA. Wall Street Zen raised shares of BorgWarner from a “buy” rating to a “strong-buy” rating in a report on Saturday, July 12th. Morgan Stanley lifted their price target on shares of BorgWarner from $40.00 to $42.00 and gave the stock an “overweight” rating in a report on Tuesday, August 12th. Bank of America lifted their price target on shares of BorgWarner from $35.00 to $41.00 and gave the stock a “buy” rating in a report on Monday, June 16th. JPMorgan Chase & Co. lifted their price target on shares of BorgWarner from $43.00 to $45.00 and gave the stock an “overweight” rating in a report on Monday, August 4th. Finally, UBS Group lifted their price target on shares of BorgWarner from $35.00 to $38.00 and gave the stock a “neutral” rating in a report on Monday, July 14th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, BorgWarner currently has a consensus rating of “Moderate Buy” and a consensus target price of $40.57.

BorgWarner Price Performance

Shares of NYSE BWA opened at $44.00 on Wednesday. BorgWarner has a twelve month low of $24.40 and a twelve month high of $44.32. The stock’s 50 day moving average price is $38.46 and its 200-day moving average price is $32.98. The company has a market capitalization of $9.52 billion, a PE ratio of 46.81, a PEG ratio of 1.33 and a beta of 1.09. The company has a quick ratio of 1.66, a current ratio of 2.02 and a debt-to-equity ratio of 0.64.

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 return on equity of 16.17% and a net margin of 1.50%.The firm had revenue of $3.64 billion for the quarter, compared to the consensus estimate of $3.56 billion. During the same quarter in the previous year, the business earned $1.19 EPS. The company’s revenue was up 1.0% compared to the same quarter last year. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. On average, equities analysts anticipate that BorgWarner will post 4.28 EPS for the current year.

BorgWarner announced that its Board of Directors has initiated a share repurchase plan on Thursday, July 31st that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the auto parts company to reacquire up to 13.2% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s board of directors believes its stock is undervalued.

BorgWarner Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd will be issued a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend is Tuesday, September 2nd. This is a positive change from BorgWarner’s previous quarterly dividend of $0.11. BorgWarner’s payout ratio is presently 72.34%.

Insider Buying and Selling at BorgWarner

In other news, VP Stefan Demmerle sold 5,000 shares of the business’s stock in a transaction 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 transaction, the vice president directly owned 229,040 shares in the company, valued at $9,276,120. The trade was a 2.14% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, VP Isabelle Mckenzie sold 2,500 shares of the business’s stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $40.01, for a total transaction of $100,025.00. Following the transaction, the vice president owned 55,945 shares of the company’s stock, valued at $2,238,359.45. This trade represents a 4.28% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 31,272 shares of company stock valued at $1,263,318 in the last 90 days. 0.45% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. New York State Teachers Retirement System grew its position in shares of BorgWarner by 3.8% during the 1st quarter. New York State Teachers Retirement System now owns 219,180 shares of the auto parts company’s stock valued at $6,280,000 after purchasing an additional 7,977 shares in the last quarter. Avantax Advisory Services Inc. grew its position in BorgWarner by 13.3% in the first quarter. Avantax Advisory Services Inc. now owns 13,258 shares of the auto parts company’s stock worth $380,000 after acquiring an additional 1,555 shares in the last quarter. Sage Rhino Capital LLC purchased a new position in BorgWarner in the first quarter worth $235,000. Brown Advisory Inc. purchased a new position in BorgWarner in the first quarter worth $522,000. Finally, Alpha Omega Wealth Management LLC grew its position in BorgWarner by 59.8% in the first quarter. Alpha Omega Wealth Management LLC now owns 25,190 shares of the auto parts company’s stock worth $722,000 after acquiring an additional 9,427 shares in the last quarter. 95.67% of the stock is currently owned by hedge funds and other institutional investors.

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.