BorgWarner (NYSE:BWA) Price Target Raised to $54.00 at Wells Fargo & Company

BorgWarner (NYSE:BWA) had its target price raised by Wells Fargo & Company from $50.00 to $54.00 in a research note issued to investors on Thursday morning,Benzinga reports. They currently have an overweight rating on the auto parts company’s stock.

Other equities research analysts have also recently issued reports about the stock. Barclays restated an “overweight” rating and issued a $45.00 price target (up from $42.00) on shares of BorgWarner in a report on Wednesday, July 16th. Piper Sandler raised 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. Robert W. Baird raised BorgWarner from a “neutral” rating to an “outperform” rating and upped their price target for the stock from $41.00 to $52.00 in a research note on Wednesday, September 3rd. Zacks Research upgraded BorgWarner from a “hold” rating to a “strong-buy” rating in a report on Friday, September 12th. Finally, Bank of America downgraded BorgWarner from a “buy” rating to a “neutral” rating and boosted their price objective for the company from $41.00 to $46.00 in a report on Wednesday, September 10th. Two investment analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, BorgWarner has an average rating of “Moderate Buy” and a consensus target price of $41.50.

BorgWarner Price Performance

Shares of BWA opened at $43.38 on Thursday. The business has a 50-day moving average of $40.89 and a 200-day moving average of $34.35. The company has a debt-to-equity ratio of 0.64, a current ratio of 2.02 and a quick ratio of 1.66. The company has a market capitalization of $9.39 billion, a price-to-earnings ratio of 46.15, a price-to-earnings-growth ratio of 1.43 and a beta of 1.09. BorgWarner has a 1 year low of $24.40 and a 1 year high of $44.70.

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 business had revenue of $3.64 billion during the quarter, compared to the consensus estimate of $3.56 billion. During the same quarter last year, the firm earned $1.19 earnings per share. BorgWarner’s quarterly 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 research analysts anticipate that BorgWarner will post 4.28 earnings per share for the current year.

BorgWarner announced that its board has approved a share repurchase 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 repurchase up to 13.2% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s management believes its stock is undervalued.

BorgWarner Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, September 15th. Investors of record on Tuesday, September 2nd were issued a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a yield of 1.6%. This is an increase from BorgWarner’s previous quarterly dividend of $0.11. The ex-dividend date was Tuesday, September 2nd. BorgWarner’s dividend payout ratio is currently 72.34%.

Insider Buying and Selling at BorgWarner

In other BorgWarner news, 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 transaction 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Isabelle Mckenzie sold 2,500 shares of the stock in a transaction dated Tuesday, August 12th. The shares were 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 owned 55,945 shares of the company’s stock, valued at approximately $2,238,359.45. This represents a 4.28% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 31,272 shares of company stock worth $1,263,318. Corporate insiders own 0.45% of the company’s stock.

Hedge Funds Weigh In On BorgWarner

A number of hedge funds and other institutional investors have recently modified their holdings of BWA. Caitong International Asset Management Co. Ltd increased its position in shares of BorgWarner by 1,133.3% during the second quarter. Caitong International Asset Management Co. Ltd now owns 777 shares of the auto parts company’s stock valued at $26,000 after acquiring an additional 714 shares during the last quarter. Addison Advisors LLC grew its stake in BorgWarner by 1,647.8% in the 2nd quarter. Addison Advisors LLC now owns 804 shares of the auto parts company’s stock valued at $27,000 after purchasing an additional 758 shares during the period. Assetmark Inc. increased its position in shares of BorgWarner by 81.8% during the 2nd quarter. Assetmark Inc. now owns 809 shares of the auto parts company’s stock valued at $27,000 after purchasing an additional 364 shares during the last quarter. Global X Japan Co. Ltd. increased its position in shares of BorgWarner by 133.4% during the 1st quarter. Global X Japan Co. Ltd. now owns 915 shares of the auto parts company’s stock valued at $26,000 after purchasing an additional 523 shares during the last quarter. Finally, Twin Peaks Wealth Advisors LLC bought a new stake in shares of BorgWarner during the 2nd quarter worth $32,000. Hedge funds and other 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.