BorgWarner Inc. (NYSE:BWA) Stock Has Consensus Price Target of $79.00 According to Brokerages

BorgWarner Inc. (NYSE:BWA) has received an average recommendation of “Moderate Buy” from the fourteen brokerages that are currently covering the firm, Marketbeat.com reports. Four analysts have rated the stock with a hold recommendation and ten have assigned a buy recommendation to the company. The average twelve-month price target among analysts that have issued ratings on the stock in the last year is $79.00.

Several brokerages recently commented on BWA. Royal Bank Of Canada initiated coverage on BorgWarner in a research note on Monday, August 31st. They set an “outperform” rating and a $87.00 price objective on the stock. Weiss Ratings restated a “hold (c+)” rating on shares of BorgWarner in a report on Friday, September 25th. JPMorgan Chase & Co. raised their price target on BorgWarner from $75.00 to $85.00 and gave the company an “overweight” rating in a research note on Monday, August 10th. Deutsche Bank Aktiengesellschaft set a $80.00 price objective on shares of BorgWarner in a research note on Thursday, August 6th. Finally, Barclays boosted their target price on BorgWarner from $83.00 to $85.00 and gave the stock an “overweight” rating in a report on Monday, August 10th.

Insider Activity

In related news, CAO Amy Kulikowski sold 2,900 shares of the company’s stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $68.60, for a total value of $198,940.00. Following the transaction, the chief accounting officer directly owned 9,725 shares in the company, valued at approximately $667,135. This represents a 22.97% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Michael Hanley sold 5,000 shares of the stock in a transaction that occurred 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 transaction, the director owned 34,313 shares in the company, valued at approximately $2,247,844.63. The trade was a 12.72% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.76% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. bought a new position in shares of BorgWarner in the 2nd quarter valued at $1,678,187,000. William Blair Investment Management LLC acquired a new position in shares of BorgWarner in the second quarter valued at approximately $251,305,000. Bank of America Corp DE acquired a new position in BorgWarner in the 2nd quarter valued at approximately $250,618,000. Swedbank AB raised its position in BorgWarner by 5.4% during the 1st quarter. Swedbank AB now owns 2,933,151 shares of the auto parts company’s stock worth $159,153,000 after purchasing an additional 150,144 shares during the last quarter. Finally, Bank of New York Mellon Corp bought a new position in shares of BorgWarner during the second quarter worth about $112,292,000. 95.67% of the stock is owned by institutional investors.

BorgWarner Stock Performance

BWA stock opened at $54.95 on Friday. BorgWarner has a twelve month low of $40.73 and a twelve month high of $78.82. The business’s fifty day moving average is $62.61 and its 200-day moving average is $63.74. The company has a quick ratio of 1.76, a current ratio of 2.13 and a debt-to-equity ratio of 0.67. The company has a market cap of $11.19 billion, a P/E ratio of 27.48, a price-to-earnings-growth ratio of 0.81 and a beta of 1.16.

BorgWarner (NYSE:BWA) last issued 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 return on equity of 19.10% and a net margin of 2.89%. The firm had revenue of $3.65 billion for the quarter, compared to analysts’ expectations of $3.58 billion. During the same quarter last year, the business earned $1.21 earnings per share. The company’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. Equities research analysts forecast that BorgWarner will post 5.19 EPS for the current year.

BorgWarner Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st were issued a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend was Tuesday, September 1st. BorgWarner’s dividend payout ratio (DPR) is presently 34.00%.

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

BorgWarner Company Profile

BorgWarner Inc (NYSE:BWA) is a global automotive technology company that develops and manufactures propulsion and mobility systems for vehicle manufacturers and commercial vehicle customers. The company serves both internal-combustion and electrified vehicle markets, with a portfolio focused on improving vehicle efficiency, performance, emissions, and electrification.

Its products and technologies include turbochargers, emissions and thermal-management systems, transmission components, friction products, battery systems, battery charging equipment, power electronics, electric motors, and other electric-drive components.