Sivia Capital Partners LLC Buys New Holdings in BorgWarner Inc. $BWA

Key Points

• Sivia Capital Partners LLC has acquired 10,136 shares of BorgWarner Inc., valued at approximately $339,000, marking a new investment in the company during the second quarter.
• BorgWarner reported earnings of $1.21 per share for the last quarter, exceeding expectations and noting a 1% year-over-year revenue increase to $3.64 billion.
• The company also announced a $1 billion stock repurchase plan and increased its quarterly dividend from $0.11 to $0.17, indicating confidence in its financial position.

Sivia Capital Partners LLC purchased a new position in BorgWarner Inc. (NYSE:BWA - Free Report) during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund purchased 10,136 shares of the auto parts company's stock, valued at approximately $339,000.

A number of other institutional investors have also recently made changes to their positions in the company. Dimensional Fund Advisors LP boosted its stake 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 acquiring an additional 284,587 shares during the last quarter. LSV Asset Management boosted its stake in BorgWarner by 36.7% during 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 last quarter. American Century Companies Inc. boosted its stake in BorgWarner by 1.7% during the first quarter. American Century Companies Inc. now owns 3,716,576 shares of the auto parts company's stock worth $106,480,000 after buying an additional 60,382 shares during the last quarter. Swedbank AB boosted its stake in BorgWarner by 28.2% during the first quarter. Swedbank AB now owns 2,075,456 shares of the auto parts company's stock worth $59,462,000 after buying an additional 456,906 shares during the last quarter. Finally, Millennium Management LLC boosted its stake in BorgWarner by 144.7% during the first quarter. Millennium Management LLC now owns 2,009,744 shares of the auto parts company's stock worth $57,579,000 after buying an additional 1,188,466 shares during the last quarter. 95.67% of the stock is owned by institutional investors and hedge funds.

Insider Transactions at BorgWarner

In other news, VP Isabelle Mckenzie sold 2,500 shares of the firm's stock in a transaction on Tuesday, August 12th. The stock was sold at an average price of $40.01, for a total transaction of $100,025.00. Following the sale, the vice president owned 55,945 shares in the company, valued at $2,238,359.45. This trade represents a 4.28% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Alexis P. Michas sold 8,772 shares of the firm's stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $42.31, for a total value of $371,143.32. Following the sale, the director owned 78,903 shares in the company, valued at $3,338,385.93. This trade represents a 10.01% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 31,272 shares of company stock worth $1,263,318 over the last quarter. 0.45% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

A number of research firms have weighed in on BWA. JPMorgan Chase & Co. boosted their price objective on BorgWarner from $43.00 to $45.00 and gave the stock an "overweight" rating in a research note on Monday, August 4th. Baird R W raised BorgWarner from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, September 3rd. Wells Fargo & Company boosted their price objective on BorgWarner from $46.00 to $50.00 and gave the stock an "overweight" rating in a research note on Tuesday, September 9th. Barclays reaffirmed an "overweight" rating and issued a $45.00 price target (up previously from $42.00) on shares of BorgWarner in a research note on Wednesday, July 16th. Finally, Evercore ISI upped their price target on BorgWarner from $38.00 to $42.00 and gave the company an "outperform" rating in a research note on Monday, August 4th. Two analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, BorgWarner has a consensus rating of "Moderate Buy" and a consensus target price of $41.21.

BorgWarner Stock Performance

Shares of BWA stock traded down $0.27 during trading hours on Friday, reaching $44.17. 4,858,546 shares of the company's stock were exchanged, compared to its average volume of 2,193,949. The company has a market cap of $9.56 billion, a P/E ratio of 46.99, a price-to-earnings-growth ratio of 1.46 and a beta of 1.09. The company's 50 day moving average is $40.24 and its two-hundred day moving average is $34.00. BorgWarner Inc. has a 1 year low of $24.40 and a 1 year high of $44.70. The company has a debt-to-equity ratio of 0.64, a current ratio of 2.02 and a quick ratio of 1.66.

BorgWarner (NYSE:BWA - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The auto parts company reported $1.21 earnings per share for the quarter, beating the consensus estimate of $1.06 by $0.15. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%.The firm had revenue of $3.64 billion during the quarter, compared to the consensus estimate of $3.56 billion. During the same period last year, the business posted $1.19 EPS. BorgWarner's quarterly revenue was up 1.0% on a year-over-year basis. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS. Equities research analysts anticipate that BorgWarner Inc. will post 4.28 EPS for the current fiscal year.

BorgWarner declared that its Board of Directors has authorized a share buyback plan on Thursday, July 31st that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the auto parts company to reacquire up to 13.2% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's management believes its shares are undervalued.

BorgWarner Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd were issued a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 1.5%. This is a positive change from BorgWarner's previous quarterly dividend of $0.11. The ex-dividend date was Tuesday, September 2nd. BorgWarner's payout ratio is 72.34%.

BorgWarner Profile

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.