BorgWarner (NYSE:BWA) Sets New 12-Month High – What’s Next?

BorgWarner Inc. (NYSE:BWA) 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.

Analysts Set New Price Targets

Several brokerages have commented on BWA. Wells Fargo & Company lowered their price objective on shares of BorgWarner from $54.00 to $52.00 and set an “overweight” rating on the stock in a research report on Tuesday, December 9th. JPMorgan Chase & Co. lifted their price target on shares of BorgWarner from $45.00 to $53.00 and gave the stock an “overweight” rating in a report on Monday, October 20th. Zacks Research lowered BorgWarner from a “strong-buy” rating to a “hold” rating in a report on Monday, October 13th. UBS Group raised their target price on BorgWarner from $46.00 to $49.00 and gave the stock a “neutral” rating in a research report on Wednesday, January 14th. Finally, Robert W. Baird set a $55.00 price target on BorgWarner in a research report on Wednesday, January 14th. Eight investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $47.31.

BorgWarner Price Performance

The business has a fifty day moving average of $45.06 and a 200-day moving average of $42.64. The company has a current ratio of 2.05, a quick ratio of 1.69 and a debt-to-equity ratio of 0.63. The firm has a market cap of $10.35 billion, a PE ratio of 76.78, a PEG ratio of 0.91 and a beta of 1.06.

BorgWarner (NYSE:BWA) last announced its quarterly earnings results on Thursday, October 30th. The auto parts company reported $1.24 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.16 by $0.08. The firm had revenue of $3.59 billion for the quarter, compared to the consensus estimate of $3.58 billion. BorgWarner had a net margin of 0.94% and a return on equity of 16.72%. The company’s revenue for the quarter was up 4.1% on a year-over-year basis. During the same period in the prior year, the firm posted $1.09 earnings per share. BorgWarner has set its FY 2025 guidance at 4.600-4.750 EPS. As a group, research analysts predict 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. Shareholders of record on Monday, December 1st were given a $0.17 dividend. The ex-dividend date was Monday, December 1st. This represents a $0.68 annualized dividend and a yield of 1.4%. BorgWarner’s payout ratio is presently 107.94%.

Insider Activity at BorgWarner

In related news, VP Isabelle Mckenzie sold 3,200 shares of BorgWarner stock in a transaction on Tuesday, November 4th. The shares were sold at an average price of $44.23, for a total value of $141,536.00. Following the transaction, the vice president directly owned 43,555 shares of the company’s stock, valued at $1,926,437.65. The trade was a 6.84% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, VP Stefan Demmerle sold 15,000 shares of the stock in a transaction on Tuesday, November 11th. The shares were sold at an average price of $45.52, for a total transaction of $682,800.00. Following the sale, the vice president directly owned 209,040 shares of the company’s stock, valued at $9,515,500.80. The trade was a 6.70% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 23,200 shares of company stock worth $1,054,336 in the last 90 days. Company insiders own 0.45% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Acadian Asset Management LLC increased its stake in shares of BorgWarner by 23.7% during the first quarter. Acadian Asset Management LLC now owns 8,979 shares of the auto parts company’s stock valued at $257,000 after buying an additional 1,723 shares during the period. Parallel Advisors LLC increased its position in BorgWarner by 67.4% during the 2nd quarter. Parallel Advisors LLC now owns 3,812 shares of the auto parts company’s stock valued at $128,000 after purchasing an additional 1,535 shares during the period. Sivia Capital Partners LLC bought a new position in BorgWarner in the 2nd quarter worth $339,000. Wealth Enhancement Advisory Services LLC lifted its position in shares of BorgWarner by 81.7% in the 2nd quarter. Wealth Enhancement Advisory Services LLC now owns 89,056 shares of the auto parts company’s stock worth $3,145,000 after purchasing an additional 40,055 shares during the period. Finally, CX Institutional boosted its stake in shares of BorgWarner by 71.9% during the 2nd quarter. CX Institutional now owns 5,879 shares of the auto parts company’s stock valued at $197,000 after purchasing an additional 2,458 shares in the last quarter. Hedge funds and other institutional investors 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.