BorgWarner (NYSE:BWA) Trading Up 4.9% – Here’s Why

BorgWarner Inc. (NYSE:BWA) shares rose 4.9% on Wednesday . The stock traded as high as $77.72 and last traded at $77.72. Approximately 604,852 shares changed hands during mid-day trading, a decline of 79% from the average daily volume of 2,915,854 shares. The stock had previously closed at $74.08.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the company. Wells Fargo & Company lifted their price target on BorgWarner from $68.00 to $83.00 and gave the stock an “overweight” rating in a research note on Tuesday. Wall Street Zen cut BorgWarner from a “strong-buy” rating to a “buy” rating in a research note on Saturday, May 9th. Robert W. Baird set a $76.00 target price on BorgWarner in a research report on Thursday, February 12th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of BorgWarner in a report on Monday, April 20th. Finally, Morgan Stanley boosted their target price on shares of BorgWarner from $60.00 to $67.00 and gave the company an “equal weight” rating in a research note on Wednesday, May 27th. Seven research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $69.21.

BorgWarner Trading Up 5.2%

The firm’s fifty day moving average price is $58.53 and its 200-day moving average price is $52.47. The company has a market cap of $15.98 billion, a price-to-earnings ratio of 46.11, a P/E/G ratio of 1.36 and a beta of 1.07. The company has a debt-to-equity ratio of 0.69, a current ratio of 2.13 and a quick ratio of 1.75.

BorgWarner (NYSE:BWA) last released its quarterly earnings data on Wednesday, May 6th. The auto parts company reported $1.24 earnings per share for the quarter, topping analysts’ consensus estimates of $1.16 by $0.08. The business had revenue of $3.53 billion for the quarter, compared to analysts’ expectations of $3.50 billion. BorgWarner had a net margin of 2.53% and a return on equity of 18.36%. The company’s revenue for the quarter was up .5% compared to the same quarter last year. During the same quarter last year, the company earned $1.11 EPS. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. On average, equities analysts expect that BorgWarner Inc. will post 5.18 EPS for the current fiscal year.

BorgWarner Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Monday, June 1st will be paid a $0.17 dividend. The ex-dividend date is Monday, June 1st. This represents a $0.68 annualized dividend and a dividend yield of 0.9%. BorgWarner’s dividend payout ratio (DPR) is presently 40.24%.

Insider Buying and Selling

In other BorgWarner news, VP Isabelle Mckenzie sold 3,500 shares of the firm’s stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $63.35, for a total value of $221,725.00. Following the sale, the vice president owned 57,828 shares in the company, valued at approximately $3,663,403.80. This trade represents a 5.71% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Paul Arthur Farrell sold 12,012 shares of the firm’s stock in a transaction that occurred on Thursday, March 12th. The shares were sold at an average price of $52.31, for a total transaction of $628,347.72. Following the completion of the sale, the executive vice president owned 38,238 shares in the company, valued at $2,000,229.78. The trade was a 23.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 96,033 shares of company stock valued at $5,792,558 in the last ninety days. Insiders own 0.76% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. AQR Capital Management LLC grew its position in BorgWarner by 119.7% in the third quarter. AQR Capital Management LLC now owns 7,518,776 shares of the auto parts company’s stock worth $330,525,000 after buying an additional 4,095,902 shares during the last quarter. Norges Bank acquired a new position in BorgWarner in the fourth quarter worth approximately $156,794,000. Millennium Management LLC grew its position in BorgWarner by 94.5% in the fourth quarter. Millennium Management LLC now owns 2,100,815 shares of the auto parts company’s stock worth $94,663,000 after buying an additional 1,020,726 shares during the last quarter. SEB Asset Management AB acquired a new position in BorgWarner in the first quarter worth approximately $50,930,000. Finally, Adage Capital Partners GP L.L.C. grew its position in BorgWarner by 233.6% in the second quarter. Adage Capital Partners GP L.L.C. now owns 1,111,000 shares of the auto parts company’s stock worth $37,196,000 after buying an additional 778,000 shares during the last quarter. Institutional investors and hedge funds 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.