BorgWarner (NYSE:BWA) Sets New 1-Year High – Here’s Why

BorgWarner Inc. (NYSE:BWA) shares hit a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $70.36 and last traded at $70.2980, with a volume of 198234 shares changing hands. The stock had previously closed at $68.26.

Analyst Upgrades and Downgrades

BWA has been the subject of a number of recent research reports. The Goldman Sachs Group lifted their price target on shares of BorgWarner from $54.00 to $78.00 and gave the stock a “buy” rating in a research note on Thursday, February 12th. JPMorgan Chase & Co. increased their target price on BorgWarner from $73.00 to $75.00 and gave the company an “overweight” rating in a report on Thursday, May 14th. New Street Research set a $66.00 price objective on BorgWarner in a research report on Thursday, February 12th. UBS Group raised their target price on BorgWarner from $56.00 to $61.00 and gave the stock a “neutral” rating in a research report on Thursday, May 7th. Finally, Barclays increased their price target on shares of BorgWarner from $70.00 to $75.00 and gave the company an “overweight” rating in a research note on Thursday, May 7th. Seven research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $68.14.

BorgWarner Stock Up 2.5%

The stock has a market cap of $14.34 billion, a PE ratio of 41.38, a P/E/G ratio of 1.27 and a beta of 1.00. The business has a 50 day moving average of $57.01 and a 200-day moving average of $51.73. The company has a current ratio of 2.13, a quick ratio of 1.75 and a debt-to-equity ratio of 0.69.

BorgWarner (NYSE:BWA) last announced its earnings results on Wednesday, May 6th. The auto parts company reported $1.24 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.16 by $0.08. BorgWarner had a net margin of 2.53% and a return on equity of 18.36%. The business had revenue of $3.53 billion for the quarter, compared to analyst estimates of $3.50 billion. During the same period last year, the firm posted $1.11 earnings per share. The company’s revenue for the quarter was up .5% compared to the same quarter last year. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. Equities research analysts predict that BorgWarner Inc. will post 5.16 EPS for the current fiscal year.

BorgWarner Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Monday, June 1st will be paid a dividend of $0.17 per share. The ex-dividend date is Monday, June 1st. This represents a $0.68 annualized dividend and a dividend yield of 1.0%. BorgWarner’s dividend payout ratio is 40.24%.

Insider Activity

In other BorgWarner news, EVP Tania Wingfield sold 5,000 shares of the stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $63.24, for a total transaction of $316,200.00. Following the completion of the sale, the executive vice president directly owned 35,365 shares of the company’s stock, valued at approximately $2,236,482.60. This trade represents a 12.39% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Isabelle Mckenzie sold 3,500 shares of the business’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 completion of the transaction, the vice president directly owned 57,828 shares in the company, valued at approximately $3,663,403.80. The trade was a 5.71% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 96,033 shares of company stock worth $5,792,558 over the last quarter. 0.76% of the stock is owned by insiders.

Institutional Trading of BorgWarner

Hedge funds have recently made changes to their positions in the company. Arete Wealth Advisors LLC purchased a new stake in shares of BorgWarner in the first quarter valued at about $1,039,000. Ariadne Wealth Management LP raised its holdings in 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 in the last quarter. Bank of America Corp DE lifted its position in BorgWarner by 1.9% in the first quarter. Bank of America Corp DE now owns 3,774,056 shares of the auto parts company’s stock valued at $204,780,000 after purchasing an additional 68,802 shares during the period. Kentucky Retirement Systems purchased a new stake in BorgWarner in the 1st quarter valued at approximately $1,050,000. Finally, Bull Harbor Capital LLC purchased a new stake in BorgWarner in the 1st quarter valued at approximately $1,056,000. 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.