BorgWarner (NYSE:BWA) Rating Lowered to Hold at Wall Street Zen

BorgWarner (NYSE:BWA) was downgraded by analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a report released on Saturday, Wall Street Zen reports.

A number of other brokerages have also weighed in on BWA. Deutsche Bank Aktiengesellschaft set a $80.00 price objective on BorgWarner in a research note on Thursday, August 6th. Robert W. Baird set a $79.00 price target on shares of BorgWarner in a research report on Thursday, August 6th. Royal Bank Of Canada initiated coverage on shares of BorgWarner in a research note on Monday, August 31st. They issued an “outperform” rating and a $87.00 price target for the company. Wells Fargo & Company upped their price target on shares of BorgWarner from $68.00 to $83.00 and gave the company an “overweight” rating in a report on Tuesday, June 2nd. Finally, UBS Group upgraded shares of BorgWarner from a “neutral” rating to a “buy” rating and increased their price objective for the company from $61.00 to $95.00 in a research note on Wednesday, June 10th. Nine investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $78.86.

BorgWarner Trading Up 0.1%

NYSE BWA opened at $66.69 on Friday. The stock has a market cap of $13.58 billion, a P/E ratio of 33.35, a PEG ratio of 1.20 and a beta of 1.12. The company’s fifty day simple moving average is $65.30 and its 200-day simple moving average is $62.45. 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 52 week low of $40.50 and a 52 week high of $78.82.

BorgWarner (NYSE:BWA) last released its quarterly earnings results on Wednesday, August 5th. The auto parts company reported $1.42 earnings per share 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 business had revenue of $3.65 billion during the quarter, compared to analyst estimates of $3.58 billion. During the same period last year, the business earned $1.21 EPS. The business’s revenue was up .3% on a year-over-year basis. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. Equities research analysts predict that BorgWarner will post 5.2 EPS for the current fiscal year.

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

Insider Activity at BorgWarner

In other BorgWarner news, CAO Amy Kulikowski sold 2,900 shares of the business’s stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $68.60, for a total transaction of $198,940.00. Following the completion of the transaction, the chief accounting officer directly owned 9,725 shares of the company’s stock, valued at $667,135. The trade was a 22.97% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Michael Hanley sold 5,000 shares of the firm’s stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $65.51, for a total transaction of $327,550.00. Following the completion of the sale, the director owned 34,313 shares in the company, valued at $2,247,844.63. The trade was a 12.72% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.76% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Sequoia Financial Advisors LLC boosted its stake in BorgWarner by 8.2% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 27,127 shares of the auto parts company’s stock valued at $1,801,000 after purchasing an additional 2,051 shares in the last quarter. IPG Investment Advisors LLC bought a new position in BorgWarner during the second quarter valued at about $1,715,000. Engineers Gate Manager LP grew its holdings in BorgWarner by 85.5% during the second quarter. Engineers Gate Manager LP now owns 64,351 shares of the auto parts company’s stock worth $4,273,000 after acquiring an additional 29,652 shares during the period. Capital Analysts LLC raised its position in BorgWarner by 9.1% in the second quarter. Capital Analysts LLC now owns 4,041 shares of the auto parts company’s stock worth $268,000 after acquiring an additional 338 shares in the last quarter. Finally, Pinnacle Wealth Management Advisory Group LLC boosted its position in shares of BorgWarner by 4.4% during the 2nd quarter. Pinnacle Wealth Management Advisory Group LLC now owns 5,446 shares of the auto parts company’s stock valued at $362,000 after purchasing an additional 229 shares in the last quarter. Institutional investors and hedge funds own 95.67% of the company’s stock.

About BorgWarner

BorgWarner Inc (NYSE:BWA) is a global automotive technology company headquartered in Auburn Hills, Michigan. The company develops and supplies propulsion and drivetrain systems for passenger vehicles, commercial vehicles and off-highway applications, serving automakers and other transportation manufacturers worldwide.

Its product portfolio includes turbochargers, transmission systems, dual-clutch modules, four-wheel-drive systems, emissions technologies, and components for hybrid and internal-combustion vehicles.