BorgWarner (NYSE:BWA) Price Target Raised to $85.00

BorgWarner (NYSE:BWA) had its price objective increased by JPMorgan Chase & Co. from $75.00 to $85.00 in a report released on Monday morning,Benzinga reports. They currently have an overweight rating on the auto parts company’s stock.

Other analysts also recently issued research reports about the company. UBS Group upgraded BorgWarner from a “neutral” rating to a “buy” rating and upped their target price for the stock from $61.00 to $95.00 in a research note on Wednesday, June 10th. Weiss Ratings upgraded BorgWarner from a “hold (c)” rating to a “hold (c+)” rating in a research report on Monday, June 29th. Deutsche Bank Aktiengesellschaft set a $80.00 price target on BorgWarner in a report on Thursday, August 6th. Morgan Stanley upped their price objective on BorgWarner from $67.00 to $71.00 and gave the stock an “equal weight” rating in a research report on Thursday, August 6th. Finally, Barclays raised their price objective on shares of BorgWarner from $83.00 to $85.00 and gave the stock an “overweight” rating in a research note on Monday. Nine investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $75.93.

BorgWarner Stock Down 1.2%

NYSE:BWA opened at $68.83 on Monday. The company has a debt-to-equity ratio of 0.67, a current ratio of 2.13 and a quick ratio of 1.76. The company’s fifty day moving average price is $67.29 and its 200-day moving average price is $60.70. BorgWarner has a 1-year low of $40.07 and a 1-year high of $78.82. The firm has a market capitalization of $14.02 billion, a P/E ratio of 34.41, a PEG ratio of 1.25 and a beta of 1.10.

BorgWarner (NYSE:BWA) last posted its earnings results on Wednesday, August 5th. The auto parts company reported $1.42 earnings per share (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 company had revenue of $3.65 billion during the quarter, compared to the consensus estimate of $3.58 billion. During the same period in the previous year, the firm posted $1.21 earnings per share. The firm’s quarterly revenue 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, equities research analysts anticipate that BorgWarner will post 5.19 EPS for the current year.

BorgWarner declared that its Board of Directors has authorized a stock buyback plan on Wednesday, August 5th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the auto parts company to reacquire up to 7.7% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s leadership believes its shares are undervalued.

BorgWarner Announces Dividend

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 given a dividend of $0.17 per share. The ex-dividend date is Tuesday, September 1st. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.0%. BorgWarner’s dividend payout ratio (DPR) is 34.00%.

Hedge Funds Weigh In On BorgWarner

A number of hedge funds have recently bought and sold shares of the business. Clearstead Trust LLC purchased a new stake in shares of BorgWarner in the second quarter valued at approximately $28,000. Prosperity Bancshares Inc purchased a new position in shares of BorgWarner during the 4th quarter valued at approximately $37,000. Ceredex Value Advisors LLC purchased a new position in shares of BorgWarner during the 2nd quarter valued at approximately $40,000. Sound Income Strategies LLC grew its stake in BorgWarner by 9,888.9% in the 4th quarter. Sound Income Strategies LLC now owns 899 shares of the auto parts company’s stock valued at $42,000 after acquiring an additional 890 shares during the period. Finally, Torren Management LLC acquired a new stake in BorgWarner in the 4th quarter valued at $48,000. Hedge funds and other institutional investors own 95.67% of the company’s stock.

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.