Insider Buying: BorgWarner (NYSE:BWA) Director Acquires $500,639.13 in Stock

by · The Markets Daily

BorgWarner Inc. (NYSE:BWAGet Free Report) Director Rajesh Kalathur purchased 7,407 shares of the firm’s stock in a transaction that occurred on Wednesday, August 19th. The stock was bought at an average cost of $67.59 per share, for a total transaction of $500,639.13. Following the completion of the purchase, the director directly owned 7,407 shares in the company, valued at $500,639.13. This represents a ∞ increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link.

BorgWarner Price Performance

NYSE:BWA traded down $1.57 during trading hours on Thursday, hitting $64.66. 2,075,724 shares of the stock were exchanged, compared to its average volume of 2,831,479. The firm’s fifty day moving average price is $66.69 and its 200 day moving average price is $61.40. BorgWarner Inc. has a 52-week low of $40.50 and a 52-week high of $78.82. The company has a market cap of $13.17 billion, a P/E ratio of 32.33, a P/E/G ratio of 1.22 and a beta of 1.10. 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 (NYSE:BWAGet Free Report) last released its earnings results on Wednesday, August 5th. The auto parts company reported $1.42 earnings per share for the quarter, beating the consensus estimate of $1.28 by $0.14. BorgWarner had a return on equity of 19.10% and a net margin of 2.89%.The business had revenue of $3.65 billion for the quarter, compared to the consensus estimate of $3.58 billion. During the same quarter last year, the business posted $1.21 earnings per share. The business’s quarterly revenue was up .3% compared to the same quarter last year. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. As a group, equities research analysts anticipate that BorgWarner Inc. will post 5.19 EPS for the current fiscal year.

BorgWarner announced that its Board of Directors has initiated a stock repurchase 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 reacquire up to 7.7% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s leadership believes its stock is undervalued.

BorgWarner Announces Dividend

The firm also recently announced 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. This represents a $0.68 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend is Tuesday, September 1st. BorgWarner’s payout ratio is 34.00%.

Hedge Funds Weigh In On BorgWarner

A number of institutional investors have recently bought and sold shares of the company. Acadian Asset Management LLC raised its position in shares of BorgWarner by 23.7% during the 1st quarter. Acadian Asset Management LLC now owns 8,979 shares of the auto parts company’s stock valued at $257,000 after buying an additional 1,723 shares during the period. Sivia Capital Partners LLC purchased a new position in BorgWarner in the second quarter worth approximately $339,000. EverSource Wealth Advisors LLC grew its position in BorgWarner by 400.5% in the second quarter. EverSource Wealth Advisors LLC now owns 5,531 shares of the auto parts company’s stock worth $185,000 after acquiring an additional 4,426 shares during the period. Marshall Wace LLP acquired a new stake in BorgWarner during the second quarter worth $247,000. Finally, Cerity Partners LLC increased its stake in BorgWarner by 30.2% during the second quarter. Cerity Partners LLC now owns 143,841 shares of the auto parts company’s stock worth $4,816,000 after acquiring an additional 33,362 shares during the last quarter. 95.67% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the stock. Robert W. Baird set a $79.00 price target on shares of BorgWarner in a research note on Thursday, August 6th. Weiss Ratings upgraded shares of BorgWarner from a “hold (c)” rating to a “hold (c+)” rating in a report on Monday, June 29th. UBS Group raised shares of BorgWarner from a “neutral” rating to a “buy” rating and raised their target price for the stock from $61.00 to $95.00 in a research note on Wednesday, June 10th. Wall Street Zen upgraded BorgWarner from a “hold” rating to a “buy” rating in a research report on Saturday, June 27th. Finally, Wolfe Research reiterated an “outperform” rating and set a $95.00 price objective on shares of BorgWarner in a research report on Wednesday, June 3rd. Nine equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $75.93.

View Our Latest Research Report on BorgWarner

BorgWarner Company Profile

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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.

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