Brokerages Set BorgWarner Inc. (NYSE:BWA) Target Price at $75.93

Shares of BorgWarner Inc. (NYSE:BWA) have received an average rating of “Moderate Buy” from the fifteen research firms that are currently covering the company, MarketBeat.com reports. Six research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. The average 12 month target price among brokerages that have issued ratings on the stock in the last year is $75.9286.

A number of brokerages have commented on BWA. Barclays increased their price target on shares of BorgWarner from $83.00 to $85.00 and gave the company an “overweight” rating in a research note on Monday, August 10th. Wolfe Research restated an “outperform” rating and set a $95.00 price objective on shares of BorgWarner in a research note on Wednesday, June 3rd. Morgan Stanley upped their target price on shares of BorgWarner from $67.00 to $71.00 and gave the company an “equal weight” rating in a report on Thursday, August 6th. Wells Fargo & Company raised their target price on shares of BorgWarner from $68.00 to $83.00 and gave the company an “overweight” rating in a research note on Tuesday, June 2nd. Finally, Sanford C. Bernstein raised BorgWarner to a “buy” rating in a research report on Wednesday, June 10th.

BorgWarner Stock Up 1.9%

NYSE:BWA opened at $69.98 on Tuesday. BorgWarner has a twelve month low of $40.50 and a twelve month high of $78.82. The firm has a market capitalization of $14.25 billion, a price-to-earnings ratio of 34.99, a price-to-earnings-growth ratio of 1.24 and a beta of 1.10. The company has a quick ratio of 1.76, a current ratio of 2.13 and a debt-to-equity ratio of 0.67. The stock’s 50 day moving average price is $66.90 and its two-hundred day moving average price is $61.14.

BorgWarner (NYSE:BWA) last released its quarterly earnings data on Wednesday, August 5th. The auto parts company reported $1.42 EPS for the quarter, beating the consensus estimate of $1.28 by $0.14. BorgWarner had a return on equity of 19.10% and a net margin of 2.89%.The company had revenue of $3.65 billion during the quarter, compared to the consensus estimate of $3.58 billion. During the same quarter in the prior year, the firm posted $1.21 EPS. The firm’s revenue for the quarter was up .3% compared to the same quarter last year. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. Equities research analysts expect that BorgWarner will post 5.19 earnings per share for the current fiscal year.

BorgWarner Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be paid a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 1.0%. The ex-dividend date is Tuesday, September 1st. BorgWarner’s payout ratio is currently 34.00%.

BorgWarner declared that its board has authorized a share repurchase program on Wednesday, August 5th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the auto parts company to repurchase up to 7.7% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s management believes its shares are undervalued.

Institutional Investors Weigh In On BorgWarner

Hedge funds have recently added to or reduced their stakes in the business. Sivia Capital Partners LLC bought a new position in shares of BorgWarner in the second quarter valued at about $339,000. Louisiana State Employees Retirement System bought a new stake in shares of BorgWarner during the 1st quarter worth about $3,256,000. Securian Asset Management Inc. bought a new stake in shares of BorgWarner during the 4th quarter worth about $702,000. Northwestern Mutual Investment Management Company LLC acquired a new position in BorgWarner in the 4th quarter valued at about $2,157,000. Finally, Bessemer Group Inc. raised its holdings in BorgWarner by 5,773.0% in the 4th quarter. Bessemer Group Inc. now owns 201,386 shares of the auto parts company’s stock valued at $9,074,000 after acquiring an additional 197,957 shares during the period. 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.