BorgWarner (NYSE:BWA) Downgraded by Bank of America to Neutral

Bank of America downgraded shares of BorgWarner (NYSE:BWA) from a buy rating to a neutral rating in a research note issued to investors on Wednesday, MarketBeat.com reports. The firm currently has $46.00 price objective on the auto parts company’s stock, up from their prior price objective of $41.00.

A number of other equities analysts have also recently issued reports on the stock. Morgan Stanley raised their price objective on shares of BorgWarner from $40.00 to $42.00 and gave the company an “overweight” rating in a research note on Tuesday, August 12th. Piper Sandler increased their target price on BorgWarner from $37.00 to $44.00 and gave the company an “overweight” rating in a research note on Friday, August 1st. Wall Street Zen raised BorgWarner from a “buy” rating to a “strong-buy” rating in a research note on Saturday, July 12th. Robert W. Baird raised BorgWarner from a “neutral” rating to an “outperform” rating and increased their target price for the company from $41.00 to $52.00 in a research note on Wednesday, September 3rd. Finally, UBS Group increased their target price on BorgWarner from $35.00 to $38.00 and gave the company a “neutral” rating in a research note on Monday, July 14th. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $41.21.

BorgWarner Stock Performance

NYSE BWA opened at $43.17 on Wednesday. The stock has a market cap of $9.34 billion, a P/E ratio of 45.92, a PEG ratio of 1.32 and a beta of 1.09. The company’s 50-day simple moving average is $39.02 and its 200 day simple moving average is $33.27. BorgWarner has a twelve month low of $24.40 and a twelve month high of $44.45. 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 released its quarterly earnings results on Thursday, July 31st. The auto parts company reported $1.21 EPS for the quarter, beating analysts’ consensus estimates of $1.06 by $0.15. The firm had revenue of $3.64 billion for the quarter, compared to analyst estimates of $3.56 billion. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. The company’s revenue for the quarter was up 1.0% compared to the same quarter last year. During the same period in the previous year, the business earned $1.19 earnings per share. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. As a group, research analysts forecast that BorgWarner will post 4.28 earnings per share for the current fiscal year.

BorgWarner Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd will be paid a $0.17 dividend. This is a positive change from BorgWarner’s previous quarterly dividend of $0.11. This represents a $0.68 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date is Tuesday, September 2nd. BorgWarner’s dividend payout ratio is 72.34%.

BorgWarner declared that its board has authorized a share buyback plan on Thursday, July 31st that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the auto parts company to purchase up to 13.2% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.

Insider Activity

In related news, VP Isabelle Mckenzie sold 2,500 shares of BorgWarner stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $40.01, for a total transaction of $100,025.00. Following the completion of the sale, the vice president directly owned 55,945 shares of the company’s stock, valued at approximately $2,238,359.45. This trade represents a 4.28% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Alexis P. Michas sold 8,772 shares of BorgWarner stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $42.31, for a total value of $371,143.32. Following the completion of the transaction, the director directly owned 78,903 shares of the company’s stock, valued at $3,338,385.93. This represents a 10.01% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 31,272 shares of company stock valued at $1,263,318 over the last three months. Insiders own 0.45% of the company’s stock.

Institutional Investors Weigh In On BorgWarner

A number of large investors have recently modified their holdings of BWA. Cetera Investment Advisers grew its position in BorgWarner by 78.6% during the 4th quarter. Cetera Investment Advisers now owns 37,521 shares of the auto parts company’s stock worth $1,193,000 after acquiring an additional 16,518 shares during the last quarter. Deutsche Bank AG grew its position in BorgWarner by 57.3% during the 4th quarter. Deutsche Bank AG now owns 1,302,324 shares of the auto parts company’s stock worth $41,401,000 after acquiring an additional 474,529 shares during the last quarter. Focus Partners Wealth grew its position in BorgWarner by 40.1% during the 4th quarter. Focus Partners Wealth now owns 10,759 shares of the auto parts company’s stock worth $342,000 after acquiring an additional 3,080 shares during the last quarter. Janus Henderson Group PLC grew its position in BorgWarner by 0.4% during the 4th quarter. Janus Henderson Group PLC now owns 112,559 shares of the auto parts company’s stock worth $3,580,000 after acquiring an additional 501 shares during the last quarter. Finally, LRI Investments LLC grew its position in BorgWarner by 1,515.0% during the 4th quarter. LRI Investments LLC now owns 969 shares of the auto parts company’s stock worth $31,000 after acquiring an additional 909 shares during the last quarter. Institutional investors and hedge funds own 95.67% of the company’s stock.

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.