Royal Bank Of Canada Upgrades BorgWarner (NYSE:BWA) to Moderate Buy

BorgWarner (NYSE:BWA) was upgraded by equities researchers at Royal Bank Of Canada to a “moderate buy” rating in a note issued to investors on Monday, Zacks reports.

A number of other brokerages also recently issued reports on BWA. Morgan Stanley increased their price target on BorgWarner from $67.00 to $71.00 and gave the stock an “equal weight” rating in a research report on Thursday, August 6th. Robert W. Baird set a $79.00 price objective on BorgWarner in a report on Thursday, August 6th. The Goldman Sachs Group reiterated a “buy” rating and set a $84.00 target price on shares of BorgWarner in a research report on Thursday, June 11th. Deutsche Bank Aktiengesellschaft set a $80.00 price target on BorgWarner in a research report on Thursday, August 6th. Finally, UBS Group raised shares of BorgWarner from a “neutral” rating to a “buy” rating and upped their price objective for the stock from $61.00 to $95.00 in a research report on Wednesday, June 10th. Ten analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $76.67.

BorgWarner Price Performance

NYSE:BWA opened at $63.68 on Monday. BorgWarner has a 52 week low of $40.50 and a 52 week high of $78.82. The company has a debt-to-equity ratio of 0.67, a quick ratio of 1.76 and a current ratio of 2.13. The firm’s 50-day simple moving average is $65.29 and its 200 day simple moving average is $62.19. The firm has a market cap of $12.97 billion, a price-to-earnings ratio of 31.84, a P/E/G ratio of 1.15 and a beta of 1.12.

BorgWarner (NYSE:BWA) last announced its earnings results on Wednesday, August 5th. The auto parts company reported $1.42 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.28 by $0.14. BorgWarner had a net margin of 2.89% and a return on equity of 19.10%. The firm had revenue of $3.65 billion for the quarter, compared to analyst estimates of $3.58 billion. During the same quarter in the prior year, the business posted $1.21 EPS. The business’s revenue was up .3% compared to the same quarter last year. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. As a group, sell-side analysts predict that BorgWarner will post 5.2 earnings per share for the current year.

BorgWarner announced that its board has authorized a stock buyback plan on Wednesday, August 5th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the auto parts company to reacquire up to 7.7% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s leadership believes its stock is undervalued.

Insider Buying and Selling

In related news, Director Michael S. Hanley sold 5,000 shares of the business’s stock in a transaction on Friday, August 28th. The stock was sold at an average price of $65.51, for a total transaction of $327,550.00. Following the sale, the director owned 34,313 shares in the company, valued at $2,247,844.63. The trade was a 12.72% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Rajesh Kalathur bought 7,407 shares of the stock in a transaction on Wednesday, August 19th. The stock was purchased at an average cost of $67.59 per share, with a total value of $500,639.13. Following the acquisition, the director owned 7,407 shares in the company, valued at approximately $500,639.13. This represents a ∞ increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 0.76% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Sivia Capital Partners LLC acquired a new position in BorgWarner in the 2nd quarter valued at approximately $339,000. Louisiana State Employees Retirement System acquired a new position in shares of BorgWarner during the first quarter worth $3,256,000. Securian Asset Management Inc. bought a new stake in shares of BorgWarner in the fourth quarter worth $702,000. Northwestern Mutual Investment Management Company LLC bought a new stake in shares of BorgWarner in the fourth quarter worth $2,157,000. Finally, Bessemer Group Inc. increased its holdings in BorgWarner by 5,773.0% in the fourth quarter. Bessemer Group Inc. now owns 201,386 shares of the auto parts company’s stock valued at $9,074,000 after purchasing an additional 197,957 shares during the period. Institutional investors own 95.67% 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.