Share Buyback Program Initiated by BorgWarner (NYSE:BWA) Board of Directors

BorgWarner (NYSE:BWA) announced that its Board of Directors has initiated a share buyback program on Wednesday, August 5th, RTT News reports. The company plans to buyback $1.00 billion in shares. This buyback authorization allows the auto parts company to purchase up to 7.7% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.

BorgWarner Stock Performance

Shares of BWA opened at $68.51 on Friday. The company’s 50 day simple moving average is $67.56 and its 200-day simple moving average is $60.15. BorgWarner has a 12-month low of $38.13 and a 12-month high of $78.82. The firm has a market cap of $13.95 billion, a PE ratio of 34.26, a price-to-earnings-growth ratio of 1.40 and a beta of 1.10. The company has a current ratio of 2.13, a quick ratio of 1.75 and a debt-to-equity ratio of 0.67.

BorgWarner (NYSE:BWA) last issued its quarterly earnings results on Wednesday, August 5th. The auto parts company reported $1.42 earnings per share for the quarter, topping analysts’ consensus estimates of $1.28 by $0.14. The firm had revenue of $3.65 billion during the quarter, compared to analysts’ expectations of $3.58 billion. BorgWarner had a net margin of 2.89% and a return on equity of 19.10%. BorgWarner’s quarterly revenue was up .3% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.21 EPS. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. As a group, equities analysts predict that BorgWarner will post 5.17 EPS for the current year.

BorgWarner Dividend Announcement

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

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on BWA. Deutsche Bank Aktiengesellschaft set a $80.00 price objective on BorgWarner in a report on Thursday. Morgan Stanley boosted their target price on BorgWarner from $67.00 to $71.00 and gave the stock an “equal weight” rating in a research note on Thursday. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $84.00 price target on shares of BorgWarner in a report on Thursday, June 11th. Barclays increased their price target on shares of BorgWarner from $75.00 to $83.00 and gave the company an “overweight” rating in a research note on Thursday, July 9th. Finally, Robert W. Baird set a $79.00 price objective on shares of BorgWarner in a research report on Thursday. Nine research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $75.07.

Insider Buying and Selling

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 BorgWarner 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 owned 57,828 shares in the company, valued at $3,663,403.80. This trade represents a 5.71% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 47,500 shares of company stock valued at $3,124,915 in the last quarter. 0.76% of the stock is currently owned by insiders.

BorgWarner Company Profile

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.