Stock Repurchase Plan Declared by BorgWarner (NYSE:BWA)

BorgWarner (NYSE:BWA) announced that its Board of Directors has authorized a stock repurchase program on Wednesday, August 5th, RTT News reports. The company plans to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the auto parts company to repurchase up to 7.7% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s board believes its stock is undervalued.

BorgWarner Stock Up 6.0%

NYSE:BWA traded up $3.77 during mid-day trading on Wednesday, reaching $66.81. The company’s stock had a trading volume of 3,537,749 shares, compared to its average volume of 2,152,699. The company has a quick ratio of 1.75, a current ratio of 2.13 and a debt-to-equity ratio of 0.69. The firm has a market capitalization of $13.70 billion, a PE ratio of 39.53, a price-to-earnings-growth ratio of 1.35 and a beta of 1.10. The stock has a fifty day moving average of $67.74 and a 200-day moving average of $59.96. BorgWarner has a 1 year low of $37.84 and a 1 year high of $78.82.

BorgWarner (NYSE:BWA) last posted its quarterly earnings results on Wednesday, August 5th. The auto parts company reported $1.42 EPS for the quarter, beating the consensus estimate of $1.28 by $0.14. BorgWarner had a net margin of 2.53% and a return on equity of 18.36%. The business had revenue of $3.65 billion during the quarter, compared to analyst estimates of $3.58 billion. During the same quarter in the previous year, the business posted $1.21 EPS. The company’s quarterly revenue was up .3% compared to the same quarter last year. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. Equities research analysts forecast that BorgWarner will post 5.16 earnings per share for the current year.

BorgWarner Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be issued a dividend of $0.17 per share. The ex-dividend date is Tuesday, September 1st. This represents a $0.68 dividend on an annualized basis and a yield of 1.0%. BorgWarner’s dividend payout ratio is currently 40.24%.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on BWA. Deutsche Bank Aktiengesellschaft set a $81.00 price target on BorgWarner in a research note on Tuesday, April 21st. Wells Fargo & Company lifted their target price on BorgWarner from $68.00 to $83.00 and gave the stock an “overweight” rating in a research report on Tuesday, June 2nd. JPMorgan Chase & Co. raised their price target on shares of BorgWarner from $73.00 to $75.00 and gave the stock an “overweight” rating in a research note on Thursday, May 14th. Barclays lifted their price objective on shares of BorgWarner from $75.00 to $83.00 and gave the company an “overweight” rating in a report on Thursday, July 9th. Finally, Weiss Ratings raised shares of BorgWarner from a “hold (c)” rating to a “hold (c+)” rating in a research report on Monday, June 29th. Nine research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $74.57.

BorgWarner News Summary

Here are the key news stories impacting BorgWarner this week:

• Positive Sentiment: Quarterly results exceeded expectations. BorgWarner reported adjusted EPS of $1.42, up from $1.21 a year ago and ahead of the $1.26-$1.28 analyst consensus. Revenue of $3.65 billion also surpassed the approximately $3.58 billion estimate, while sales increased 0.3% year over year. BorgWarner Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Full-year adjusted EPS guidance was raised. BorgWarner now expects 2026 EPS of $5.05-$5.30, compared with the previous outlook and roughly $5.19 consensus. Revenue guidance of $14.0-$14.3 billion is broadly in line with expectations, indicating the main upgrade is profitability-related. BorgWarner Reports Second Quarter Results
• Positive Sentiment: Capital returns and future business wins support the investment case. The company increased its share-repurchase authorization by $1 billion and announced seven awards across its portfolio. It also secured variable cam timing programs in Europe and China, providing potential longer-term revenue opportunities. BorgWarner Secures Variable Cam Timing Awards
• Negative Sentiment: Investors remain focused on segment headwinds. Management’s earnings-call commentary indicated that weakness or drag from the BES business is offsetting some of the company’s operating strength. This could limit near-term margin expansion despite the improved EPS outlook. BorgWarner Balances Earnings Strength With BES Drag

Insider Buying and Selling

In other BorgWarner news, VP Stefan Demmerle sold 5,000 shares of the stock in a transaction on Wednesday, May 13th. The stock was sold at an average price of $65.00, for a total transaction of $325,000.00. Following the sale, the vice president owned 203,746 shares of the company’s stock, valued at approximately $13,243,490. This trade represents a 2.40% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Isabelle Mckenzie sold 3,500 shares of the business’s stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $63.35, for a total value of $221,725.00. Following the completion of the transaction, the vice president directly owned 57,828 shares of the company’s stock, valued at approximately $3,663,403.80. The trade was a 5.71% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 67,500 shares of company stock worth $4,310,115 over the last quarter. Insiders own 0.76% of the company’s stock.

About BorgWarner

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.