BorgWarner (NYSE:BWA) Rating Increased to Outperform at Wolfe Research

Wolfe Research upgraded shares of BorgWarner (NYSE:BWA) from a peer perform rating to an outperform rating in a research note published on Wednesday morning, Marketbeat.com reports. The firm currently has $68.00 price objective on the auto parts company’s stock.

Several other research analysts have also weighed in on the company. Morgan Stanley set a $60.00 target price on BorgWarner in a research report on Thursday, February 12th. The Goldman Sachs Group boosted their price target on BorgWarner from $54.00 to $78.00 and gave the company a “buy” rating in a research report on Thursday, February 12th. Evercore restated an “outperform” rating and set a $75.00 price target on shares of BorgWarner in a research note on Tuesday, February 17th. Wells Fargo & Company raised their price objective on BorgWarner from $52.00 to $75.00 and gave the stock an “overweight” rating in a report on Thursday, February 12th. Finally, UBS Group raised BorgWarner from a “sell” rating to a “neutral” rating and set a $55.00 price objective on the stock in a research note on Friday, March 6th. Eight research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $63.77.

BorgWarner Price Performance

BorgWarner stock opened at $56.01 on Wednesday. BorgWarner has a 1 year low of $24.40 and a 1 year high of $70.08. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.70 and a current ratio of 2.07. The firm has a 50 day moving average price of $53.60 and a 200 day moving average price of $47.49. The company has a market cap of $11.54 billion, a price-to-earnings ratio of 44.81, a PEG ratio of 1.12 and a beta of 1.04.

BorgWarner (NYSE:BWA) last posted its quarterly earnings results on Wednesday, February 11th. The auto parts company reported $1.35 earnings per share for the quarter, topping analysts’ consensus estimates of $1.16 by $0.19. The company had revenue of $3.57 billion for the quarter, compared to the consensus estimate of $3.49 billion. BorgWarner had a net margin of 1.93% and a return on equity of 17.89%. BorgWarner’s revenue was up 3.9% on a year-over-year basis. During the same quarter last year, the firm posted $1.01 earnings per share. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. Sell-side analysts predict that BorgWarner will post 4.28 earnings per share for the current year.

BorgWarner Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, March 16th. Investors of record on Monday, March 2nd were issued a dividend of $0.17 per share. The ex-dividend date was Monday, March 2nd. This represents a $0.68 annualized dividend and a dividend yield of 1.2%. BorgWarner’s payout ratio is presently 54.40%.

Insider Activity

In related news, EVP Tania Wingfield sold 17,867 shares of the stock in a transaction on Friday, February 13th. The stock was sold at an average price of $63.43, for a total value of $1,133,303.81. Following the completion of the sale, the executive vice president directly owned 45,429 shares in the company, valued at approximately $2,881,561.47. This represents a 28.23% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Isabelle Mckenzie sold 2,458 shares of the firm’s stock in a transaction dated Wednesday, February 18th. The shares were sold at an average price of $61.54, for a total value of $151,265.32. Following the completion of the transaction, the vice president directly owned 66,351 shares in the company, valued at $4,083,240.54. This trade represents a 3.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 78,083 shares of company stock worth $4,638,585 in the last quarter. Insiders own 0.45% of the company’s stock.

Hedge Funds Weigh In On BorgWarner

Several hedge funds and other institutional investors have recently bought and sold shares of BWA. AQR Capital Management LLC grew its position in BorgWarner by 119.7% in the third quarter. AQR Capital Management LLC now owns 7,518,776 shares of the auto parts company’s stock valued at $330,525,000 after acquiring an additional 4,095,902 shares in the last quarter. Norges Bank acquired a new position in shares of BorgWarner during the fourth quarter worth $156,794,000. Millennium Management LLC lifted its position in shares of BorgWarner by 94.5% during the fourth quarter. Millennium Management LLC now owns 2,100,815 shares of the auto parts company’s stock worth $94,663,000 after purchasing an additional 1,020,726 shares in the last quarter. Adage Capital Partners GP L.L.C. boosted its stake in shares of BorgWarner by 233.6% in the second quarter. Adage Capital Partners GP L.L.C. now owns 1,111,000 shares of the auto parts company’s stock valued at $37,196,000 after purchasing an additional 778,000 shares during the period. Finally, Electron Capital Partners LLC purchased a new position in shares of BorgWarner in the third quarter valued at $31,820,000. 95.67% of the stock is owned by institutional investors and hedge funds.

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.