BorgWarner (NYSE:BWA) Sets New 12-Month High – Here’s What Happened
by Doug Wharley · The Cerbat GemBorgWarner Inc. (NYSE:BWA – Get Free Report) hit a new 52-week high on Friday . The stock traded as high as $46.62 and last traded at $46.5910, with a volume of 788135 shares trading hands. The stock had previously closed at $45.06.
Wall Street Analyst Weigh In
A number of brokerages have issued reports on BWA. Weiss Ratings reaffirmed a “hold (c)” rating on shares of BorgWarner in a research report on Wednesday, October 8th. Morgan Stanley reaffirmed an “equal weight” rating and issued a $49.00 price objective (up from $42.00) on shares of BorgWarner in a report on Monday, December 8th. Bank of America cut BorgWarner from a “buy” rating to a “neutral” rating and upped their price target for the company from $41.00 to $46.00 in a research report on Wednesday, September 10th. Barclays boosted their target price on BorgWarner from $45.00 to $55.00 and gave the stock an “overweight” rating in a research report on Friday, October 10th. Finally, Robert W. Baird set a $54.00 target price on BorgWarner in a research report on Friday, October 31st. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, BorgWarner has an average rating of “Moderate Buy” and a consensus price target of $46.46.
Get Our Latest Stock Report on BWA
BorgWarner Price Performance
The firm has a 50-day moving average price of $44.12 and a 200-day moving average price of $41.23. The stock has a market cap of $9.97 billion, a P/E ratio of 73.88, a price-to-earnings-growth ratio of 0.94 and a beta of 1.06. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.69 and a current ratio of 2.05.
BorgWarner (NYSE:BWA – Get Free Report) last issued its quarterly earnings results on Thursday, October 30th. The auto parts company reported $1.24 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.16 by $0.08. BorgWarner had a net margin of 0.94% and a return on equity of 16.72%. The company had revenue of $3.59 billion during the quarter, compared to analysts’ expectations of $3.58 billion. During the same period last year, the company posted $1.09 EPS. BorgWarner’s revenue was up 4.1% on a year-over-year basis. BorgWarner has set its FY 2025 guidance at 4.600-4.750 EPS. On average, analysts forecast that BorgWarner Inc. will post 4.28 earnings per share for the current fiscal year.
BorgWarner Dividend Announcement
The company also recently declared a quarterly dividend, which was paid on Monday, December 15th. Investors of record on Monday, December 1st were paid a $0.17 dividend. The ex-dividend date was Monday, December 1st. This represents a $0.68 dividend on an annualized basis and a yield of 1.5%. BorgWarner’s payout ratio is presently 107.94%.
Insider Buying and Selling
In other news, VP Isabelle Mckenzie sold 3,200 shares of the firm’s stock in a transaction dated Tuesday, November 4th. The shares were sold at an average price of $44.23, for a total transaction of $141,536.00. Following the sale, the vice president owned 43,555 shares of the company’s stock, valued at $1,926,437.65. This trade represents a 6.84% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, VP Stefan Demmerle sold 5,000 shares of BorgWarner stock in a transaction that occurred on Wednesday, November 12th. The stock was sold at an average price of $46.00, for a total transaction of $230,000.00. Following the completion of the sale, the vice president owned 204,040 shares of the company’s stock, valued at $9,385,840. This represents a 2.39% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 23,200 shares of company stock worth $1,054,336. Corporate insiders own 0.45% of the company’s stock.
Institutional Investors Weigh In On BorgWarner
Several institutional investors and hedge funds have recently added to or reduced their stakes in BWA. AQR Capital Management LLC raised its stake in BorgWarner by 119.7% during the 3rd quarter. AQR Capital Management LLC now owns 7,518,776 shares of the auto parts company’s stock valued at $330,525,000 after buying an additional 4,095,902 shares during the last quarter. Norges Bank purchased a new stake in BorgWarner during the second quarter valued at $110,234,000. Millennium Management LLC increased its position in BorgWarner by 144.7% during the first quarter. Millennium Management LLC now owns 2,009,744 shares of the auto parts company’s stock valued at $57,579,000 after acquiring an additional 1,188,466 shares during the last quarter. Adage Capital Partners GP L.L.C. lifted its holdings in BorgWarner by 233.6% in the second quarter. Adage Capital Partners GP L.L.C. now owns 1,111,000 shares of the auto parts company’s stock valued at $37,196,000 after acquiring an additional 778,000 shares during the period. Finally, Electron Capital Partners LLC purchased a new position in BorgWarner in the third quarter worth about $31,820,000. Hedge funds and other institutional investors 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.