BorgWarner Inc. (NYSE:BWA) Stock Has Consensus Target Price of $78.86

Shares of BorgWarner Inc. (NYSE:BWA) have received an average rating of “Moderate Buy” from the fifteen brokerages that are covering the firm, MarketBeat Ratings reports. Six research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. The average twelve-month target price among analysts that have issued a report on the stock in the last year is $78.86.

BWA has been the topic of several recent research reports. Deutsche Bank Aktiengesellschaft set a $80.00 target price on shares of BorgWarner in a research note on Thursday, August 6th. Wall Street Zen cut shares of BorgWarner from a “buy” rating to a “hold” rating in a research report on Saturday, September 12th. Sanford C. Bernstein upgraded shares of BorgWarner to a “buy” rating in a research note on Wednesday, June 10th. The Goldman Sachs Group reaffirmed a “buy” rating and set a $84.00 price objective on shares of BorgWarner in a research report on Thursday, June 11th. Finally, TD Cowen increased their price objective on BorgWarner from $67.00 to $68.00 and gave the company a “hold” rating in a research note on Thursday, August 6th.

BorgWarner Price Performance

BWA opened at $60.53 on Wednesday. The stock’s 50-day moving average price is $64.60 and its 200 day moving average price is $63.13. BorgWarner has a 12-month low of $40.50 and a 12-month high of $78.82. The firm has a market cap of $12.33 billion, a price-to-earnings ratio of 30.26, a PEG ratio of 1.09 and a beta of 1.16. The company has a current ratio of 2.13, a quick ratio of 1.76 and a debt-to-equity ratio of 0.67.

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

BorgWarner Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st were issued a dividend of $0.17 per share. The ex-dividend date was Tuesday, September 1st. This represents a $0.68 annualized dividend and a yield of 1.1%. BorgWarner’s dividend payout ratio is 34.00%.

BorgWarner announced that its Board of Directors has authorized a stock buyback program on Wednesday, August 5th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the auto parts company to buy up to 7.7% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling at BorgWarner

In related news, CAO Amy B. Kulikowski sold 2,900 shares of the company’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $68.60, for a total transaction of $198,940.00. Following the sale, 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 filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Rajesh Kalathur bought 7,407 shares of BorgWarner stock in a transaction that occurred on Wednesday, August 19th. The stock was purchased at an average cost of $67.59 per share, for a total transaction of $500,639.13. Following the acquisition, the director owned 7,407 shares of the company’s stock, valued at $500,639.13. This represents a ∞ increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 0.76% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Clearstead Trust LLC purchased a new position in shares of BorgWarner in the 2nd quarter valued at $28,000. Ceredex Value Advisors LLC acquired a new stake in BorgWarner during the 2nd quarter worth $40,000. Fiduciary Financial Advisors purchased a new stake in BorgWarner in the second quarter valued at $49,000. Jones Financial Companies Lllp acquired a new position in BorgWarner in the second quarter valued at $57,000. Finally, Grove Bank & Trust boosted its stake in BorgWarner by 4,304.3% in the second quarter. Grove Bank & Trust now owns 1,013 shares of the auto parts company’s stock valued at $67,000 after acquiring an additional 990 shares in the last quarter. Institutional investors and hedge funds own 95.67% of the company’s stock.

BorgWarner Company Profile

BorgWarner Inc is a global automotive supplier that develops and manufactures propulsion, drivetrain, thermal-management and emissions technologies. The company serves automakers and commercial-vehicle manufacturers, supplying components and systems for internal-combustion, hybrid and electric vehicles.

Its product portfolio includes turbochargers, transmission systems, all-wheel-drive and four-wheel-drive technologies, clutches, timing systems, battery systems, power electronics, electric motors, thermal-management products and charging-related technologies.