BorgWarner Inc. (NYSE:BWA) VP Sells $589,650.00 in Stock

Key Points

• BorgWarner Inc. VP Stefan Demmerle sold 15,000 shares of stock for a total of $589,650, decreasing his ownership by 6.02% to approximately $9.2 million.
• The company recently announced a quarterly dividend increase to $0.17 per share, with an annual yield of 1.6%, up from a previous dividend of $0.11.
• BorgWarner declared a $1 billion stock buyback program, indicating management's belief that the company’s shares are currently undervalued.

BorgWarner Inc. (NYSE:BWA - Get Free Report) VP Stefan Demmerle sold 15,000 shares of the stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $39.31, for a total value of $589,650.00. Following the transaction, the vice president directly owned 234,040 shares of the company's stock, valued at approximately $9,200,112.40. This trade represents a 6.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink.

Stefan Demmerle also recently made the following trade(s):

• On Wednesday, August 13th, Stefan Demmerle sold 5,000 shares of BorgWarner stock. The shares were sold at an average price of $40.50, for a total value of $202,500.00.

BorgWarner Price Performance

NYSE BWA traded down $0.12 during trading hours on Thursday, reaching $41.45. 2,440,908 shares of the stock traded hands, compared to its average volume of 2,877,040. The stock has a 50 day simple moving average of $35.21 and a two-hundred day simple moving average of $31.59. BorgWarner Inc. has a 1 year low of $24.40 and a 1 year high of $41.67. The company has a debt-to-equity ratio of 0.64, a current ratio of 2.02 and a quick ratio of 1.66. The company has a market cap of $8.97 billion, a price-to-earnings ratio of 44.09, a price-to-earnings-growth ratio of 1.21 and a beta of 1.10.

BorgWarner (NYSE:BWA - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The auto parts company reported $1.21 earnings per share for the quarter, beating analysts' consensus estimates of $1.06 by $0.15. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%. The business had revenue of $3.64 billion for the quarter, compared to the consensus estimate of $3.56 billion. During the same quarter last year, the business posted $1.19 earnings per share. The company's revenue for the quarter was up 1.0% on a year-over-year basis. On average, analysts predict that BorgWarner Inc. will post 4.28 EPS for the current fiscal year.

BorgWarner Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd will be issued a $0.17 dividend. This represents a $0.68 annualized dividend and a dividend yield of 1.6%. This is an increase from BorgWarner's previous quarterly dividend of $0.11. BorgWarner's payout ratio is currently 72.34%.

BorgWarner declared that its board has approved a stock buyback program on Thursday, July 31st that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the auto parts company to buy up to 13.2% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's management believes its shares are undervalued.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Dimensional Fund Advisors LP increased its holdings in shares of BorgWarner by 2.5% in the first quarter. Dimensional Fund Advisors LP now owns 11,568,627 shares of the auto parts company's stock worth $331,429,000 after buying an additional 284,587 shares during the period. State Street Corp increased its holdings in shares of BorgWarner by 5.3% in the second quarter. State Street Corp now owns 7,633,760 shares of the auto parts company's stock worth $255,578,000 after buying an additional 380,942 shares during the period. LSV Asset Management increased its holdings in shares of BorgWarner by 36.7% in the first quarter. LSV Asset Management now owns 5,889,080 shares of the auto parts company's stock worth $168,722,000 after buying an additional 1,580,935 shares during the period. Turtle Creek Asset Management Inc. increased its holdings in shares of BorgWarner by 7.0% in the fourth quarter. Turtle Creek Asset Management Inc. now owns 4,078,780 shares of the auto parts company's stock worth $129,664,000 after buying an additional 267,250 shares during the period. Finally, Earnest Partners LLC increased its holdings in shares of BorgWarner by 0.7% in the fourth quarter. Earnest Partners LLC now owns 3,927,415 shares of the auto parts company's stock worth $124,853,000 after buying an additional 27,960 shares during the period. Hedge funds and other institutional investors own 95.67% of the company's stock.

Analysts Set New Price Targets

Several brokerages have weighed in on BWA. Piper Sandler increased their price objective on BorgWarner from $37.00 to $44.00 and gave the company an "overweight" rating in a report on Friday, August 1st. Wells Fargo & Company raised their price target on BorgWarner from $45.00 to $46.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Evercore ISI raised their price target on BorgWarner from $38.00 to $42.00 and gave the stock an "outperform" rating in a report on Monday, August 4th. Wall Street Zen raised BorgWarner from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 12th. Finally, Robert W. Baird raised their price target on BorgWarner from $32.00 to $39.00 and gave the stock a "neutral" rating in a report on Friday, July 11th. Six research analysts have rated the stock with a hold rating, ten have issued a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, BorgWarner currently has a consensus rating of "Moderate Buy" and an average price target of $39.64.

About BorgWarner

BorgWarner Inc, together with its subsidiaries, provides solutions for combustion, hybrid, and electric vehicles worldwide. It offers turbochargers, eBoosters, eTurbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, battery modules and systems, battery heaters, and battery charging.

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