BorgWarner (NYSE:BWA) Price Target Raised to $53.00 at JPMorgan Chase & Co.

BorgWarner (NYSE:BWA) had its price target boosted by JPMorgan Chase & Co. from $45.00 to $53.00 in a research note issued to investors on Monday,Benzinga reports. The brokerage currently has an overweight rating on the auto parts company’s stock.

Several other equities analysts have also commented on the stock. UBS Group increased their price objective on shares of BorgWarner from $43.00 to $46.00 and gave the company a “neutral” rating in a research report on Monday, October 6th. Piper Sandler raised their price target on shares of BorgWarner from $37.00 to $44.00 and gave the stock an “overweight” rating in a report on Friday, August 1st. Wall Street Zen raised shares of BorgWarner from a “buy” rating to a “strong-buy” rating in a report on Saturday, July 12th. Bank of America lowered BorgWarner from a “buy” rating to a “neutral” rating and raised their target price for the stock from $41.00 to $46.00 in a research note on Wednesday, September 10th. Finally, Barclays lifted their price target on BorgWarner from $45.00 to $55.00 and gave the stock an “overweight” rating in a research report on Friday, October 10th. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat, BorgWarner currently has a consensus rating of “Moderate Buy” and a consensus price target of $45.21.

BorgWarner Stock Performance

Shares of BWA stock opened at $43.00 on Monday. BorgWarner has a 12-month low of $24.40 and a 12-month high of $44.97. The business’s fifty day simple moving average is $43.05 and its 200-day simple moving average is $36.15. 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 market cap of $9.30 billion, a PE ratio of 45.74, a PEG ratio of 1.57 and a beta of 1.09.

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 the consensus estimate 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 period in the previous year, the business earned $1.19 EPS. The firm’s revenue for the quarter was up 1.0% on a year-over-year basis. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. Analysts expect 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 was paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd were given a dividend of $0.17 per share. The ex-dividend date of this dividend was Tuesday, September 2nd. 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. BorgWarner’s 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 buyback $1.00 billion in shares. This buyback authorization authorizes the auto parts company to buy up to 13.2% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s board believes its stock is undervalued.

Insider Activity

In other BorgWarner news, Director Alexis P. Michas sold 8,772 shares of the company’s stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $42.31, for a total value of $371,143.32. Following the sale, the director owned 78,903 shares in the company, valued at approximately $3,338,385.93. This represents a 10.01% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, VP Isabelle Mckenzie sold 2,500 shares of the firm’s 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 sale, the vice president directly owned 55,945 shares in the company, valued at $2,238,359.45. The trade was a 4.28% decrease in their position. 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 in the last quarter. 0.63% of the stock is currently owned by company insiders.

Institutional Trading of BorgWarner

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Norges Bank acquired a new position in shares of BorgWarner in the second quarter worth about $110,234,000. AQR Capital Management LLC increased its stake in shares of BorgWarner by 307.1% in the 2nd quarter. AQR Capital Management LLC now owns 3,422,874 shares of the auto parts company’s stock valued at $114,153,000 after purchasing an additional 2,582,105 shares in the last quarter. LSV Asset Management raised its holdings in BorgWarner by 36.7% in the 1st quarter. LSV Asset Management now owns 5,889,080 shares of the auto parts company’s stock worth $168,722,000 after purchasing an additional 1,580,935 shares during the period. Millennium Management LLC grew its holdings in BorgWarner by 144.7% in the first quarter. Millennium Management LLC now owns 2,009,744 shares of the auto parts company’s stock valued at $57,579,000 after purchasing an additional 1,188,466 shares during the period. Finally, Leith Wheeler Investment Counsel Ltd. purchased a new stake in shares of BorgWarner in the first quarter valued at approximately $28,989,000. Institutional investors and hedge funds 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.