Key Points
- Director Rajesh Kalathur bought 7,407 BorgWarner shares at an average price of $67.59, investing approximately $500,639 and becoming a direct shareholder.
- BorgWarner reported quarterly earnings of $1.42 per share and revenue of $3.65 billion, exceeding analysts’ estimates. The company reaffirmed fiscal 2026 EPS guidance of $5.05–$5.30.
- The board authorized a $1 billion share-repurchase program, while the company declared a quarterly dividend of $0.17 per share. Analysts maintain a “Moderate Buy” consensus with an average price target of $75.93.
BorgWarner Inc. (NYSE:BWA - Get Free Report) CAO Amy Kulikowski sold 2,900 shares of the company'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 sale, the chief accounting officer directly owned 9,725 shares of the company's stock, valued at approximately $667,135. This represents a 22.97% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink.
BorgWarner Stock Down 2.4%
Shares of NYSE:BWA opened at $64.66 on Friday. BorgWarner Inc. has a 52-week low of $40.50 and a 52-week high of $78.82. The stock has a market cap of $13.17 billion, a P/E ratio of 32.33, a PEG ratio of 1.19 and a beta of 1.10. The business has a fifty day moving average of $66.48 and a two-hundred day moving average of $61.52. The company has a quick ratio of 1.76, a current ratio of 2.13 and a debt-to-equity ratio of 0.67.
BorgWarner (NYSE:BWA - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The auto parts company reported $1.42 EPS for the quarter, beating the consensus estimate of $1.28 by $0.14. BorgWarner had a net margin of 2.89% and a return on equity of 19.10%. The firm had revenue of $3.65 billion for the quarter, compared to analyst estimates of $3.58 billion. During the same quarter in the previous year, the company earned $1.21 EPS. The business's revenue for the quarter was up .3% compared to the same quarter last year. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. On average, research analysts expect that BorgWarner Inc. will post 5.19 earnings per share for the current year.
BorgWarner declared that its board has approved 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 buy up to 7.7% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's board believes its stock is undervalued.
BorgWarner Announces Dividend
The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be issued a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date is Tuesday, September 1st. BorgWarner's dividend payout ratio (DPR) is 34.00%.
Institutional Investors Weigh In On BorgWarner
A number of large investors have recently modified their holdings of BWA. Cairn Investment Group Inc. acquired a new stake in shares of BorgWarner in the 2nd quarter valued at $7,233,000. Requisite Capital Management LLC acquired a new position in shares of BorgWarner during the second quarter worth $221,000. Proficio Capital Partners LLC purchased a new position in BorgWarner in the second quarter valued at $463,000. BTG Pactual Asset Management US LLC purchased a new position in BorgWarner in the second quarter valued at $336,000. Finally, Two Sigma Securities LLC acquired a new stake in BorgWarner in the second quarter valued at $299,000. 95.67% of the stock is owned by hedge funds and other institutional investors.
Analyst Upgrades and Downgrades
BWA has been the topic of a number of recent research reports. Weiss Ratings raised BorgWarner from a "hold (c)" rating to a "hold (c+)" rating in a research report on Monday, June 29th. Wolfe Research reiterated an "outperform" rating and issued a $95.00 target price on shares of BorgWarner in a report on Wednesday, June 3rd. Wall Street Zen raised BorgWarner from a "hold" rating to a "buy" rating in a research note on Saturday, June 27th. JPMorgan Chase & Co. upped their price target on BorgWarner from $75.00 to $85.00 and gave the stock an "overweight" rating in a report on Monday, August 10th. Finally, Sanford C. Bernstein raised BorgWarner to a "buy" rating in a research report on Wednesday, June 10th. Nine investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $75.93.
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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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