BorgWarner (NYSE:BWA) Reaches New 1-Year High – Still a Buy?

BorgWarner Inc. (NYSE:BWA)’s share price hit a new 52-week high during mid-day trading on Thursday . The company traded as high as $47.99 and last traded at $47.4420, with a volume of 1748594 shares traded. The stock had previously closed at $47.89.

Analyst Ratings Changes

A number of analysts have recently weighed in on the stock. Piper Sandler reiterated a “neutral” rating and set a $51.00 target price (down from $52.00) on shares of BorgWarner in a report on Thursday. UBS Group lifted their price objective on BorgWarner from $43.00 to $46.00 and gave the stock a “neutral” rating in a research report on Monday, October 6th. JPMorgan Chase & Co. boosted their target price on BorgWarner from $45.00 to $53.00 and gave the company an “overweight” rating in a research note on Monday, October 20th. Morgan Stanley reaffirmed an “equal weight” rating and issued a $49.00 price target (up previously from $42.00) on shares of BorgWarner in a research note on Monday, December 8th. Finally, Barclays boosted their price objective on shares of BorgWarner from $45.00 to $55.00 and gave the company an “overweight” rating in a research report on Friday, October 10th. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and eight have assigned a Hold rating to the stock. Based on data from MarketBeat.com, BorgWarner currently has an average rating of “Moderate Buy” and an average target price of $47.00.

BorgWarner Stock Down 0.3%

The company has a market capitalization of $10.19 billion, a P/E ratio of 75.64, a price-to-earnings-growth ratio of 0.93 and a beta of 1.06. The company has a 50-day moving average of $44.60 and a two-hundred day moving average of $41.83. The company has a quick ratio of 1.69, a current ratio of 2.05 and a debt-to-equity ratio of 0.63.

BorgWarner (NYSE:BWA) last posted its quarterly earnings data on Thursday, October 30th. The auto parts company reported $1.24 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.16 by $0.08. The business had revenue of $3.59 billion during the quarter, compared to the consensus estimate of $3.58 billion. BorgWarner had a return on equity of 16.72% and a net margin of 0.94%.The firm’s quarterly revenue was up 4.1% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.09 earnings per share. BorgWarner has set its FY 2025 guidance at 4.600-4.750 EPS. On average, research analysts predict that BorgWarner Inc. will post 4.28 EPS for the current year.

BorgWarner Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, December 15th. Investors of record on Monday, December 1st were given a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date of this dividend was Monday, December 1st. BorgWarner’s dividend payout ratio (DPR) is 107.94%.

Insider Activity

In other news, VP Isabelle Mckenzie sold 3,200 shares of the business’s stock in a transaction that occurred on Tuesday, November 4th. The stock was sold at an average price of $44.23, for a total value of $141,536.00. Following the sale, the vice president directly owned 43,555 shares of the company’s stock, valued at $1,926,437.65. The trade was a 6.84% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, VP Stefan Demmerle sold 5,000 shares of the company’s stock in a transaction that occurred on Wednesday, November 12th. The stock was sold at an average price of $46.00, for a total value of $230,000.00. Following the completion of the sale, the vice president owned 204,040 shares in the company, valued at $9,385,840. The trade was a 2.39% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 23,200 shares of company stock worth $1,054,336 in the last three months. 0.45% of the stock is currently owned by insiders.

Institutional Investors Weigh In On BorgWarner

Institutional investors have recently modified their holdings of the stock. Caitong International Asset Management Co. Ltd increased its holdings 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 in the last quarter. Assetmark Inc. increased its stake in 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 in the last quarter. Addison Advisors LLC lifted its stake in shares of BorgWarner by 1,647.8% in the second quarter. Addison Advisors LLC now owns 804 shares of the auto parts company’s stock worth $27,000 after buying an additional 758 shares in the last quarter. Root Financial Partners LLC bought a new position in shares of BorgWarner in the third quarter worth approximately $27,000. Finally, Twin Peaks Wealth Advisors LLC purchased a new stake in shares of BorgWarner during the second quarter valued at approximately $32,000. 95.67% of the stock is owned by hedge funds and other institutional investors.

BorgWarner Company Profile

BorgWarner Inc is a global automotive supplier specializing in propulsion and drivetrain solutions for combustion, hybrid and electric vehicles. The company’s product portfolio includes turbochargers, thermal management systems, transmission components, e-Propulsion modules and advanced fuel-efficiency technologies. BorgWarner serves original equipment manufacturers (OEMs) across passenger cars, light trucks and commercial vehicles, supporting both legacy internal-combustion engines and emerging electrification trends.

Founded in 1928 through the merger of several driveline companies, BorgWarner has grown through strategic acquisitions and continuous investment in research and development.