Are BorgWarner Inc (BWA) stocks a prudent buy?

BorgWarner Inc [BWA] stock is trading at $34.35, up 2.84%. Until recently, the best way to gauge how the stock has performed was to look at its short-term value. The BWA shares have gain 6.68% over the last week, with a monthly amount glided 4.44%, and seem to be holding up well over a long-time horizon.

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From an analyst’s perspective:

On March 15, 2024, Piper Sandler initiated with a Overweight rating and assigned a price target of $43 on the stock. Exane BNP Paribas downgraded its rating to a Neutral and decreased its price target to $35 on February 20, 2024. Robert W. Baird downgraded its rating to a Neutral and reduced its price target to $39 on January 03, 2024. Guggenheim upgraded its rating to Buy for this stock on November 16, 2023, but kept the price target unchanged to $41. In a note dated November 03, 2023, Deutsche Bank downgraded an Hold rating on this stock and revised its target price from $47 to $36.

BorgWarner Inc [BWA] stock has fluctuated between $29.51 and $41.50 over the past year. Currently, Wall Street analysts expect the stock to reach $48.14 within the next 12 months. BorgWarner Inc [NYSE: BWA] shares were valued at $34.35 at the most recent close of the market. An investor can expect a potential return of 40.15% based on the average BWA price forecast.

Analyzing the BWA fundamentals

BorgWarner Inc [NYSE:BWA] reported sales of 14.34B for the trailing twelve months, which represents a drop of -20.29%. Gross Profit Margin for this corporation currently stands at 0.18% with Operating Profit Margin at 0.08%, Pretax Profit Margin comes in at 0.07%, and Net Profit Margin reading is 0.05%. To continue investigating profitability, this company’s Return on Assets is posted at 0.05, Equity is 0.12 and Total Capital is 0.12. Upon thorough examination of the company’s fundamental financial framework, it becomes apparent that the debt-to-equity ratio stands at 0.62.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 33.68 points at the first support level, and at 33.00 for the second support level. However, for the 1st resistance point, the stock is sitting at 34.72, and for the 2nd resistance point, it is at 35.08.

Ratios To Look Out For

For context, BorgWarner Inc’s Current Ratio is 1.62. As well, the Quick Ratio is 1.26, while the Cash Ratio is 0.35. Considering the valuation of this stock, the price to sales ratio is 0.55, the price to book ratio is 1.28 and price to earnings (TTM) ratio is 11.05.

Transactions by insiders

Recent insider trading involved Weng Volker, Vice President, that happened on Aug 23 ’24 when 19692.0 shares were sold. Officer, Weng Volker completed a deal on Aug 23 ’24 to buy 19692.0 shares. Meanwhile, EVP & CHRO Wingfield Tania sold 7934.0 shares on Aug 14 ’24.

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