BorgWarner (NYSE:BWA) Sets New 1-Year High – Still a Buy?

BorgWarner Inc. (NYSE:BWA)’s stock price reached a new 52-week high during trading on Thursday . The company traded as high as $48.93 and last traded at $48.40, with a volume of 123605 shares. The stock had previously closed at $48.26.

Analyst Ratings Changes

Several equities research analysts recently issued reports on the company. Barclays upped their price target on BorgWarner from $45.00 to $55.00 and gave the company an “overweight” rating in a research report on Friday, October 10th. JPMorgan Chase & Co. boosted their target price on shares of BorgWarner from $45.00 to $53.00 and gave the company an “overweight” rating in a research note on Monday, October 20th. Weiss Ratings restated a “hold (c)” rating on shares of BorgWarner in a research report on Wednesday. Evercore ISI boosted their price objective on shares of BorgWarner from $50.00 to $53.00 and gave the company an “outperform” rating in a research report on Monday, November 24th. Finally, Zacks Research cut shares of BorgWarner from a “strong-buy” rating to a “hold” rating in a report on Monday, October 13th. Eight equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat.com, BorgWarner currently has an average rating of “Moderate Buy” and a consensus target price of $47.31.

BorgWarner Trading Down 0.4%

The firm’s 50-day simple moving average is $45.17 and its 200 day simple moving average is $42.77. The stock has a market cap of $10.21 billion, a P/E ratio of 75.73, a PEG ratio of 0.93 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 released its quarterly earnings results on Thursday, October 30th. The auto parts company reported $1.24 earnings per share for the quarter, beating analysts’ consensus estimates of $1.16 by $0.08. BorgWarner had a return on equity of 16.72% and a net margin of 0.94%.The company had revenue of $3.59 billion for the quarter, compared to analysts’ expectations of $3.58 billion. During the same quarter in the previous year, the company posted $1.09 earnings per share. The business’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, equities research analysts anticipate that BorgWarner Inc. will post 4.28 earnings per share for the current year.

BorgWarner Dividend Announcement

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

Insider Transactions at BorgWarner

In related news, VP Stefan Demmerle sold 15,000 shares of the business’s stock in a transaction that occurred on Tuesday, November 11th. The stock was sold at an average price of $45.52, for a total transaction of $682,800.00. Following the sale, the vice president owned 209,040 shares of the company’s stock, valued at $9,515,500.80. The trade was a 6.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Isabelle Mckenzie sold 3,200 shares of the company’s stock in a transaction that occurred on Tuesday, November 4th. The stock was sold at an average price of $44.23, for a total value 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 disclosure for this sale is available in the SEC filing. Insiders sold a total of 23,200 shares of company stock valued at $1,054,336 in the last quarter. 0.45% of the stock is currently owned by insiders.

Institutional Trading of BorgWarner

Several institutional investors have recently modified their holdings of the company. Commonwealth of Pennsylvania Public School Empls Retrmt SYS grew its position in BorgWarner by 7.8% in the second quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 56,411 shares of the auto parts company’s stock worth $1,889,000 after buying an additional 4,078 shares during the last quarter. CWM LLC boosted its stake in shares of BorgWarner by 218.3% during the 3rd quarter. CWM LLC now owns 235,861 shares of the auto parts company’s stock worth $10,368,000 after acquiring an additional 161,755 shares in the last quarter. Columbia Bank acquired a new position in shares of BorgWarner in the 2nd quarter worth $239,000. Sivia Capital Partners LLC acquired a new stake in shares of BorgWarner during the second quarter worth $339,000. Finally, Merit Financial Group LLC lifted its holdings in shares of BorgWarner by 73.1% during the third quarter. Merit Financial Group LLC now owns 44,395 shares of the auto parts company’s stock valued at $1,952,000 after purchasing an additional 18,749 shares during 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 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.