Zacks Research Increases Earnings Estimates for BorgWarner

BorgWarner Inc. (NYSE:BWA) – Equities research analysts at Zacks Research boosted their FY2025 earnings per share (EPS) estimates for shares of BorgWarner in a note issued to investors on Thursday, November 20th. Zacks Research analyst Team now expects that the auto parts company will earn $4.66 per share for the year, up from their previous forecast of $4.54. Zacks Research has a “Hold” rating on the stock. The consensus estimate for BorgWarner’s current full-year earnings is $4.28 per share. Zacks Research also issued estimates for BorgWarner’s Q4 2025 earnings at $1.10 EPS.

BorgWarner (NYSE:BWA) last released its quarterly earnings data on Thursday, October 30th. The auto parts company reported $1.24 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.16 by $0.08. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%.The business had revenue of $3.59 billion for the quarter, compared to analysts’ expectations of $3.58 billion. During the same period in the previous year, the business posted $1.09 earnings per share. BorgWarner’s quarterly revenue was up 4.1% on a year-over-year basis. BorgWarner has set its FY 2025 guidance at 4.600-4.750 EPS.

A number of other equities research analysts also recently weighed in on the stock. Barclays boosted their price target on shares of BorgWarner from $45.00 to $55.00 and gave the stock an “overweight” rating in a research note on Friday, October 10th. UBS Group increased their target price on shares of BorgWarner from $43.00 to $46.00 and gave the stock a “neutral” rating in a report on Monday, October 6th. Baird R W raised shares of BorgWarner from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, September 3rd. Evercore ISI upped their target price on shares of BorgWarner from $42.00 to $50.00 and gave the stock an “outperform” rating in a research note on Monday, October 13th. Finally, Morgan Stanley boosted their target price on BorgWarner from $40.00 to $42.00 and gave the stock an “overweight” rating in a report on Tuesday, August 12th. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, BorgWarner has a consensus rating of “Moderate Buy” and an average target price of $45.85.

BorgWarner Stock Up 4.8%

Shares of BWA opened at $42.94 on Friday. The business’s fifty day moving average price is $43.61 and its two-hundred day moving average price is $38.90. The firm has a market capitalization of $9.19 billion, a price-to-earnings ratio of 45.68, a PEG ratio of 1.58 and a beta of 1.06. BorgWarner has a 52 week low of $24.40 and a 52 week high of $46.39. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.66 and a current ratio of 2.02.

Institutional Investors Weigh In On BorgWarner

Institutional investors have recently made changes to their positions in the stock. Root Financial Partners LLC acquired a new position in shares of BorgWarner in the third quarter worth approximately $27,000. Caitong International Asset Management Co. Ltd raised its holdings in BorgWarner by 1,133.3% during the 2nd quarter. Caitong International Asset Management Co. Ltd now owns 777 shares of the auto parts company’s stock worth $26,000 after purchasing an additional 714 shares during the last quarter. Addison Advisors LLC lifted its position in shares of BorgWarner by 1,647.8% in the 2nd quarter. Addison Advisors LLC now owns 804 shares of the auto parts company’s stock worth $27,000 after purchasing an additional 758 shares during the period. Assetmark Inc. boosted its stake in shares of BorgWarner by 81.8% in 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. Finally, Mather Group LLC. acquired a new stake in shares of BorgWarner during the third quarter worth $41,000. Institutional investors own 95.67% of the company’s stock.

Insider Activity

In related news, VP Stefan Demmerle sold 15,000 shares of the firm’s stock in a transaction on Tuesday, November 11th. The stock was sold at an average price of $45.52, for a total transaction of $682,800.00. Following the sale, the vice president owned 209,040 shares of the company’s stock, valued at $9,515,500.80. This trade represents a 6.70% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Alexis P. Michas sold 8,772 shares of BorgWarner stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $42.31, for a total transaction 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 ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 31,972 shares of company stock worth $1,425,479. Insiders own 0.45% of the company’s stock.

BorgWarner announced that its Board of Directors has approved a stock 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 stock through open market purchases. Stock buyback plans are often an indication that the company’s board of directors believes its shares are undervalued.

BorgWarner Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, December 15th. Stockholders of record on Monday, December 1st will be paid a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date is Monday, December 1st. BorgWarner’s dividend payout ratio (DPR) is presently 107.94%.

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.