BorgWarner (NYSE:BWA) Upgraded to Buy at Wall Street Zen

Wall Street Zen upgraded shares of BorgWarner (NYSE:BWA) from a hold rating to a buy rating in a research note issued to investors on Saturday morning,Wall Street Zen reports.

Other equities research analysts have also recently issued research reports about the stock. TD Cowen lifted their target price on shares of BorgWarner from $67.00 to $68.00 and gave the stock a “hold” rating in a research note on Thursday, August 6th. JPMorgan Chase & Co. boosted their price target on shares of BorgWarner from $75.00 to $85.00 and gave the stock an “overweight” rating in a research report on Monday, August 10th. Deutsche Bank Aktiengesellschaft set a $80.00 price objective on shares of BorgWarner in a report on Thursday, August 6th. UBS Group decreased their target price on shares of BorgWarner from $95.00 to $91.00 and set a “buy” rating on the stock in a research note on Wednesday. Finally, Morgan Stanley boosted their target price on BorgWarner from $67.00 to $71.00 and gave the stock an “equal weight” rating in a report on Thursday, August 6th. Nine analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $78.57.

BorgWarner Stock Down 0.5%

NYSE:BWA opened at $61.43 on Friday. The company has a debt-to-equity ratio of 0.67, a current ratio of 2.13 and a quick ratio of 1.76. BorgWarner has a 1-year low of $40.50 and a 1-year high of $78.82. The company has a 50-day moving average of $64.44 and a 200 day moving average of $63.47. The firm has a market cap of $12.51 billion, a PE ratio of 30.72, a price-to-earnings-growth ratio of 1.10 and a beta of 1.16.

BorgWarner (NYSE:BWA) last posted its earnings results on Wednesday, August 5th. The auto parts company reported $1.42 EPS for the quarter, beating analysts’ consensus estimates of $1.28 by $0.14. BorgWarner had a net margin of 2.89% and a return on equity of 19.10%. The business had revenue of $3.65 billion for the quarter, compared to the consensus estimate of $3.58 billion. During the same quarter last year, the firm posted $1.21 EPS. The company’s revenue for the quarter was up .3% on a year-over-year basis. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. As a group, research analysts anticipate that BorgWarner will post 5.20 EPS for the current fiscal year.

BorgWarner Announces Dividend

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

BorgWarner announced that its Board of Directors has approved a stock buyback plan on Wednesday, August 5th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the auto parts company to repurchase up to 7.7% of its shares through open market purchases. Stock repurchase plans are typically a sign that the company’s board believes its stock is undervalued.

Insider Buying and Selling

In other BorgWarner news, Director Michael Hanley sold 5,000 shares of the company’s stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $65.51, for a total transaction of $327,550.00. Following the transaction, the director directly owned 34,313 shares in the company, valued at approximately $2,247,844.63. This represents a 12.72% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CAO Amy Kulikowski sold 2,900 shares of BorgWarner 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 owned 9,725 shares of the company’s stock, valued at approximately $667,135. The trade was a 22.97% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.76% of the stock is owned by insiders.

Hedge Funds Weigh In On BorgWarner

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Greenleaf Trust boosted its stake in shares of BorgWarner by 5.2% during the 2nd quarter. Greenleaf Trust now owns 3,977 shares of the auto parts company’s stock worth $264,000 after acquiring an additional 196 shares in the last quarter. Fifth Third Wealth Advisors LLC lifted its stake in shares of BorgWarner by 3.2% during the first quarter. Fifth Third Wealth Advisors LLC now owns 7,064 shares of the auto parts company’s stock valued at $383,000 after buying an additional 216 shares during the period. Ariadne Wealth Management LP boosted its holdings in shares of BorgWarner by 3.8% during the first quarter. Ariadne Wealth Management LP now owns 5,958 shares of the auto parts company’s stock worth $323,000 after purchasing an additional 218 shares during the last quarter. NewEdge Advisors LLC grew its holdings in BorgWarner by 2.2% in the 1st quarter. NewEdge Advisors LLC now owns 10,293 shares of the auto parts company’s stock valued at $558,000 after buying an additional 220 shares during the period. Finally, Pinnacle Wealth Management Advisory Group LLC grew its holdings in BorgWarner by 4.4% in the second quarter. Pinnacle Wealth Management Advisory Group LLC now owns 5,446 shares of the auto parts company’s stock valued at $362,000 after purchasing an additional 229 shares during the period. 95.67% of the stock is owned by institutional investors and hedge funds.

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.