BorgWarner Inc. (NYSE:BWA) VP Stefan Demmerle Sells 5,000 Shares

Key Points

• BorgWarner Inc. VP Stefan Demmerle recently sold 5,000 shares of the company, resulting in a 2.14% decrease in his holdings; he now owns 229,040 shares valued at around $9.28 million.
• The company has announced a $1 billion share repurchase program and increased its quarterly dividend from $0.11 to $0.17, reflecting confidence in its stock value.
• BorgWarner reported better-than-expected quarterly earnings, with $1.21 EPS surpassing forecasts; its revenue for the quarter reached $3.64 billion, above anticipated figures.

BorgWarner Inc. (NYSE:BWA - Get Free Report) VP Stefan Demmerle sold 5,000 shares of the stock in a transaction that occurred on Wednesday, August 13th. The shares were sold at an average price of $40.50, for a total transaction of $202,500.00. Following the sale, the vice president owned 229,040 shares in the company, valued at approximately $9,276,120. The trade was a 2.14% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website.

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

• On Tuesday, August 12th, Stefan Demmerle sold 15,000 shares of BorgWarner stock. The shares were sold at an average price of $39.31, for a total transaction of $589,650.00.

BorgWarner Stock Performance

BWA traded down $0.12 during trading on Thursday, hitting $41.45. The company's stock had a trading volume of 2,440,908 shares, compared to its average volume of 2,877,040. The company has a quick ratio of 1.66, a current ratio of 2.02 and a debt-to-equity ratio of 0.64. BorgWarner Inc. has a one year low of $24.40 and a one year high of $41.67. The firm has a market cap of $8.97 billion, a PE ratio of 44.09, a P/E/G ratio of 1.21 and a beta of 1.10. The business's 50 day simple moving average is $35.21 and its 200-day simple moving average is $31.59.

BorgWarner (NYSE:BWA - Get Free Report) last announced its quarterly earnings data on Thursday, July 31st. The auto parts company reported $1.21 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.06 by $0.15. The firm had revenue of $3.64 billion during the quarter, compared to analysts' expectations of $3.56 billion. BorgWarner had a net margin of 1.50% and a return on equity of 16.17%. The company's revenue for the quarter was up 1.0% compared to the same quarter last year. During the same period in the prior year, the company posted $1.19 earnings per share. As a group, sell-side analysts predict that BorgWarner Inc. will post 4.28 EPS for the current fiscal year.

BorgWarner declared that its Board of Directors has approved a share repurchase program on Thursday, July 31st that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the auto parts company to repurchase up to 13.2% of its shares through open market purchases. Shares repurchase programs are often a sign that the company's leadership believes its stock is undervalued.

BorgWarner Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd will be paid a $0.17 dividend. This is a boost from BorgWarner's previous quarterly dividend of $0.11. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.6%. BorgWarner's dividend payout ratio (DPR) is presently 72.34%.

Hedge Funds Weigh In On BorgWarner

Institutional investors and hedge funds have recently made changes to their positions in the business. Envestnet Asset Management Inc. lifted its holdings in shares of BorgWarner by 40.3% in the 4th quarter. Envestnet Asset Management Inc. now owns 275,049 shares of the auto parts company's stock worth $8,744,000 after acquiring an additional 79,022 shares during the last quarter. Raymond James Financial Inc. bought a new stake in BorgWarner during the 4th quarter valued at about $3,860,000. Sterling Capital Management LLC lifted its holdings in BorgWarner by 45.4% during the 4th quarter. Sterling Capital Management LLC now owns 13,531 shares of the auto parts company's stock valued at $430,000 after buying an additional 4,224 shares in the last quarter. Barclays PLC lifted its holdings in BorgWarner by 13.6% during the 4th quarter. Barclays PLC now owns 503,809 shares of the auto parts company's stock valued at $16,015,000 after buying an additional 60,333 shares in the last quarter. Finally, Mariner LLC lifted its holdings in BorgWarner by 1.7% during the 4th quarter. Mariner LLC now owns 97,782 shares of the auto parts company's stock valued at $3,108,000 after buying an additional 1,638 shares in the last quarter. 95.67% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of equities analysts have weighed in on the company. Bank of America boosted their target price on BorgWarner from $35.00 to $41.00 and gave the stock a "buy" rating in a research report on Monday, June 16th. Guggenheim decreased their target price on BorgWarner from $38.00 to $33.00 and set a "buy" rating for the company in a research report on Tuesday, April 22nd. Wells Fargo & Company increased their price objective on shares of BorgWarner from $45.00 to $46.00 and gave the company an "overweight" rating in a research report on Friday, August 1st. Robert W. Baird increased their price objective on shares of BorgWarner from $32.00 to $39.00 and gave the company a "neutral" rating in a research report on Friday, July 11th. Finally, Wall Street Zen upgraded shares of BorgWarner from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 12th. Six investment analysts have rated the stock with a hold rating, ten have given a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price 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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