BorgWarner (NYSE:BWA) Reaches New 52-Week High – Here’s Why

BorgWarner Inc. (NYSE:BWA) reached a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $48.53 and last traded at $48.1520, with a volume of 1505697 shares. The stock had previously closed at $48.27.

Analyst Ratings Changes

Several research firms have recently weighed in on BWA. Barclays lifted their target price on shares of BorgWarner from $45.00 to $55.00 and gave the stock an “overweight” rating in a research report on Friday, October 10th. Piper Sandler reaffirmed a “neutral” rating and issued a $51.00 price objective (down previously from $52.00) on shares of BorgWarner in a research note on Thursday, January 8th. Robert W. Baird set a $54.00 price objective on shares of BorgWarner in a research report on Friday, October 31st. Morgan Stanley reissued an “equal weight” rating and set a $49.00 target price (up from $42.00) on shares of BorgWarner in a research note on Monday, December 8th. Finally, Wells Fargo & Company reduced their target price on BorgWarner from $54.00 to $52.00 and set an “overweight” rating for the company in a report on Tuesday, December 9th. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and eight have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $47.00.

BorgWarner Trading Down 0.2%

The business’s 50-day simple moving average is $44.77 and its 200-day simple moving average is $42.16. The company has a market cap of $10.30 billion, a PE ratio of 76.43, a P/E/G ratio of 0.94 and a beta of 1.06. The company has a current ratio of 2.05, a quick ratio of 1.69 and a debt-to-equity ratio of 0.63.

BorgWarner (NYSE:BWA) last posted its quarterly earnings results on Thursday, October 30th. The auto parts company reported $1.24 earnings per share for the quarter, topping analysts’ consensus estimates of $1.16 by $0.08. BorgWarner had a net margin of 0.94% and a return on equity of 16.72%. The business had revenue of $3.59 billion for the quarter, compared to the consensus estimate of $3.58 billion. During the same period in the prior year, the business posted $1.09 earnings per share. BorgWarner’s revenue for the quarter was up 4.1% compared to the same quarter last year. BorgWarner has set its FY 2025 guidance at 4.600-4.750 EPS. As a group, analysts expect that BorgWarner Inc. will post 4.28 EPS for the current fiscal year.

BorgWarner Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, December 15th. Stockholders of record on Monday, December 1st were issued a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 1.4%. The ex-dividend date was Monday, December 1st. BorgWarner’s payout ratio is currently 107.94%.

Insider Buying and Selling

In related news, VP Stefan Demmerle sold 15,000 shares of the stock in a transaction that occurred on Tuesday, November 11th. The stock was sold at an average price of $45.52, for a total value of $682,800.00. Following the transaction, the vice president owned 209,040 shares in the company, valued at approximately $9,515,500.80. This represents a 6.70% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, VP Isabelle Mckenzie sold 3,200 shares of BorgWarner stock in a transaction that occurred on Tuesday, November 4th. The shares were sold at an average price of $44.23, for a total transaction of $141,536.00. Following the completion of the sale, the vice president owned 43,555 shares of the company’s stock, valued at $1,926,437.65. This trade represents a 6.84% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 23,200 shares of company stock worth $1,054,336 in the last 90 days. 0.63% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On BorgWarner

A number of large investors have recently bought and sold shares of BWA. Caitong International Asset Management Co. Ltd boosted its stake in shares of 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 acquiring an additional 714 shares in the last quarter. Assetmark Inc. boosted its holdings in shares of BorgWarner by 81.8% during the 2nd 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 lifted its position in BorgWarner by 1,647.8% during the 2nd quarter. Addison Advisors LLC now owns 804 shares of the auto parts company’s stock worth $27,000 after acquiring an additional 758 shares during the last quarter. Root Financial Partners LLC bought a new position in shares of BorgWarner in the third quarter worth about $27,000. Finally, Twin Peaks Wealth Advisors LLC acquired a new stake in BorgWarner in the 2nd quarter valued at approximately $32,000. 95.67% of the stock is currently owned by institutional investors.

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.