BorgWarner (NYSE:BWA) Sees Strong Trading Volume Following Strong Earnings

BorgWarner Inc. (NYSE:BWA) shares saw unusually-high trading volume on Wednesday after the company announced better than expected quarterly earnings. Approximately 2,857,317 shares were traded during trading, an increase of 33% from the previous session’s volume of 2,142,320 shares.The stock last traded at $65.2570 and had previously closed at $53.98.

The auto parts company reported $1.35 earnings per share for the quarter, beating analysts’ consensus estimates of $1.16 by $0.19. BorgWarner had a net margin of 0.94% and a return on equity of 16.72%. The firm had revenue of $3.57 billion for the quarter, compared to analyst estimates of $3.49 billion. During the same period last year, the company posted $1.01 EPS. BorgWarner’s quarterly revenue was up 3.9% compared to the same quarter last year. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS.

BorgWarner Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, March 16th. Investors of record on Monday, March 2nd will be paid a $0.17 dividend. This represents a $0.68 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend is Monday, March 2nd. BorgWarner’s dividend payout ratio is currently 107.94%.

BorgWarner News Roundup

Here are the key news stories impacting BorgWarner this week:

• Positive Sentiment: Q4 earnings and revenue beat expectations (EPS $1.35 vs. ~$1.16 estimate; revenue $3.57B vs. ~$3.49B) and profitability improved, driven by powertrain demand and cost savings — a clear near-term catalyst for the stock. BorgWarner quarterly profit rises on powertrain demand, cost-saving measures
• Positive Sentiment: Company announced a string of OEM program awards (800V integrated drive modules, expanded battery‑management system programs, 48V eXD and turbocharger supply), reinforcing revenue visibility from new EV/HEV content over the medium term. BorgWarner Reports 2025 Results and Provides 2026 Guidance
• Positive Sentiment: Strong capital returns highlighted — roughly $630M returned in 2025 — which supports shareholder value and can buoy investor sentiment alongside operational beat. BorgWarner Reports 2025 Results and Provides 2026 Guidance
• Neutral Sentiment: FY‑2026 EPS guidance set to $5.00–$5.20; some outlets call the guidance “soft” relative to certain expectations even though it implies continued earnings growth — the guidance partly offsets the quarterly beat for some investors. BorgWarner secures record number of awards, beats Q4 expectations, sets soft FY26 guidance
• Negative Sentiment: Management acknowledged EV headwinds even as margins improved — investor concern remains that EV transition dynamics and conservative revenue guidance could limit upside beyond the initial beat. BorgWarner Inc. Balances EV Headwinds With Margin Gains

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on BWA shares. UBS Group raised their price target on shares of BorgWarner from $46.00 to $49.00 and gave the stock a “neutral” rating in a research note on Wednesday, January 14th. Evercore upped their price target on BorgWarner from $50.00 to $53.00 and gave the company an “outperform” rating in a research report on Monday, November 24th. Piper Sandler reiterated a “neutral” rating and set a $51.00 price objective (down previously from $52.00) on shares of BorgWarner in a research report on Thursday, January 8th. Robert W. Baird set a $55.00 target price on BorgWarner in a report on Wednesday, January 14th. Finally, Morgan Stanley reiterated an “equal weight” rating and set a $49.00 price target (up previously from $42.00) on shares of BorgWarner in a report on Monday, December 8th. Eight analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $47.31.

Institutional Trading of BorgWarner

A number of large investors have recently modified their holdings of the stock. Caitong International Asset Management Co. Ltd increased 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 period. Assetmark Inc. increased its stake in shares of BorgWarner by 81.8% during the second quarter. Assetmark Inc. now owns 809 shares of the auto parts company’s stock worth $27,000 after buying an additional 364 shares during the period. Addison Advisors LLC increased its stake in shares of BorgWarner by 1,647.8% during 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 during the period. Root Financial Partners LLC acquired a new stake in BorgWarner in the third quarter valued at approximately $27,000. Finally, Twin Peaks Wealth Advisors LLC purchased a new position in BorgWarner in the second quarter worth approximately $32,000. Hedge funds and other institutional investors own 95.67% of the company’s stock.

BorgWarner Stock Up 23.5%

The firm’s fifty day simple moving average is $47.27 and its 200 day simple moving average is $44.23. The company has a current ratio of 2.05, a quick ratio of 1.69 and a debt-to-equity ratio of 0.63. The company has a market cap of $14.26 billion, a price-to-earnings ratio of 105.84, a PEG ratio of 1.09 and a beta of 1.09.

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.