BorgWarner (NYSE:BWA) Rating Increased to Moderate Buy at Royal Bank Of Canada

Royal Bank Of Canada upgraded shares of BorgWarner (NYSE:BWA) to a moderate buy rating in a research report sent to investors on Monday,Zacks reports.

Several other equities analysts have also issued reports on the stock. TD Cowen lifted their price objective on shares of BorgWarner from $67.00 to $68.00 and gave the company a “hold” rating in a report on Thursday, August 6th. Morgan Stanley upped their target price on BorgWarner from $67.00 to $71.00 and gave the stock an “equal weight” rating in a report on Thursday, August 6th. JPMorgan Chase & Co. increased their target price on BorgWarner from $75.00 to $85.00 and gave the company an “overweight” rating in a research report on Monday, August 10th. UBS Group upgraded BorgWarner from a “neutral” rating to a “buy” rating and lifted their price target for the company from $61.00 to $95.00 in a report on Wednesday, June 10th. Finally, Wall Street Zen upgraded BorgWarner from a “hold” rating to a “buy” rating in a research note on Saturday, June 27th. Ten equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $76.67.

BorgWarner Stock Performance

Shares of BorgWarner stock opened at $63.68 on Monday. The firm has a market cap of $12.97 billion, a P/E ratio of 31.84, a P/E/G ratio of 1.15 and a beta of 1.12. The company has a current ratio of 2.13, a quick ratio of 1.76 and a debt-to-equity ratio of 0.67. BorgWarner has a 12 month low of $40.50 and a 12 month high of $78.82. The stock’s fifty day moving average price is $65.29 and its 200-day moving average price is $62.19.

BorgWarner (NYSE:BWA) last released its quarterly earnings data 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 company had revenue of $3.65 billion during the quarter, compared to analyst estimates of $3.58 billion. BorgWarner had a net margin of 2.89% and a return on equity of 19.10%. The firm’s revenue for the quarter was up .3% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.21 earnings per share. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. On average, equities research analysts expect that BorgWarner will post 5.2 earnings per share for the current fiscal year.

BorgWarner declared that its Board of Directors has authorized a stock buyback 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 purchase up to 7.7% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board of directors believes its shares are undervalued.

BorgWarner Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be given a $0.17 dividend. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.1%. BorgWarner’s dividend payout ratio (DPR) is presently 34.00%.

Insider Activity at BorgWarner

In other BorgWarner news, Director Rajesh Kalathur purchased 7,407 shares of the stock in a transaction on Wednesday, August 19th. The stock was acquired at an average price of $67.59 per share, with a total value of $500,639.13. Following the completion of the acquisition, the director owned 7,407 shares in the company, valued at $500,639.13. The trade was a ∞ increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. Also, CAO Amy B. Kulikowski sold 2,900 shares of the business’s stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $68.60, for a total value of $198,940.00. Following the sale, the chief accounting officer owned 9,725 shares in the company, valued at $667,135. The trade was a 22.97% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.76% of the stock is currently owned by corporate insiders.

Institutional Trading of BorgWarner

A number of institutional investors have recently bought and sold shares of BWA. BlackRock Inc. acquired a new position in BorgWarner during the 2nd quarter valued at approximately $1,678,187,000. California State Teachers Retirement System lifted its stake in shares of BorgWarner by 6,262.3% during the second quarter. California State Teachers Retirement System now owns 15,870,795 shares of the auto parts company’s stock worth $1,053,821,000 after buying an additional 15,621,343 shares during the period. Dimensional Fund Advisors LP lifted its stake in shares of BorgWarner by 1.5% during the fourth quarter. Dimensional Fund Advisors LP now owns 11,961,482 shares of the auto parts company’s stock worth $538,996,000 after buying an additional 178,853 shares during the period. AQR Capital Management LLC grew its holdings in shares of BorgWarner by 22.7% during the fourth quarter. AQR Capital Management LLC now owns 9,222,352 shares of the auto parts company’s stock valued at $415,559,000 after buying an additional 1,703,576 shares during the last quarter. Finally, State Street Corp grew its holdings in shares of BorgWarner by 5.3% during the second quarter. State Street Corp now owns 7,633,760 shares of the auto parts company’s stock valued at $255,578,000 after buying an additional 380,942 shares during the last quarter. 95.67% of the stock is currently owned by institutional investors and hedge funds.

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.