NorthCrest Asset Manangement LLC Invests $404,000 in BorgWarner Inc. $BWA

Key Points

• NorthCrest Asset Management LLC has acquired 11,425 shares of BorgWarner Inc., valued at approximately $404,000, as part of their new position in the company.
• BorgWarner's quarterly earnings surpassed expectations, with an EPS of $1.21 against a consensus estimate of $1.06, and revenue reported at $3.64 billion.
• Following an increase in dividend from $0.11 to $0.17 per share, BorgWarner's stock now has a dividend yield of 1.5% and a payout ratio of 72.34%.

NorthCrest Asset Manangement LLC bought a new position in shares of BorgWarner Inc. (NYSE:BWA - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 11,425 shares of the auto parts company's stock, valued at approximately $404,000.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Global X Japan Co. Ltd. increased its position in shares of BorgWarner by 133.4% during the first quarter. Global X Japan Co. Ltd. now owns 915 shares of the auto parts company's stock worth $26,000 after acquiring an additional 523 shares in the last quarter. Manchester Capital Management LLC bought a new stake in shares of BorgWarner during the first quarter worth about $30,000. Meeder Asset Management Inc. increased its position in shares of BorgWarner by 63.5% during the first quarter. Meeder Asset Management Inc. now owns 1,388 shares of the auto parts company's stock worth $40,000 after acquiring an additional 539 shares in the last quarter. Allworth Financial LP increased its position in shares of BorgWarner by 123.1% during the first quarter. Allworth Financial LP now owns 1,437 shares of the auto parts company's stock worth $41,000 after acquiring an additional 793 shares in the last quarter. Finally, Brooklyn Investment Group increased its position in shares of BorgWarner by 97.9% during the first quarter. Brooklyn Investment Group now owns 1,480 shares of the auto parts company's stock worth $42,000 after acquiring an additional 732 shares in the last quarter. 95.67% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on BWA shares. Wall Street Zen raised shares of BorgWarner from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 12th. Piper Sandler upped their price objective on shares of BorgWarner from $37.00 to $44.00 and gave the stock an "overweight" rating in a research report on Friday, August 1st. Morgan Stanley upped their price objective on shares of BorgWarner from $40.00 to $42.00 and gave the stock an "overweight" rating in a research report on Tuesday, August 12th. Wells Fargo & Company upped their price objective on shares of BorgWarner from $46.00 to $50.00 and gave the stock an "overweight" rating in a research report on Tuesday, September 9th. Finally, UBS Group upped their price objective on shares of BorgWarner from $35.00 to $38.00 and gave the stock a "neutral" rating in a research report on Monday, July 14th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $41.21.

Insider Buying and Selling

In related news, VP Stefan Demmerle sold 5,000 shares of the company's 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 of the company's stock, valued at approximately $9,276,120. This represents a 2.14% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, VP Isabelle Mckenzie sold 2,500 shares of the 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 completion of the transaction, the vice president directly owned 55,945 shares in the company, valued at $2,238,359.45. The trade was a 4.28% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 31,272 shares of company stock valued at $1,263,318. Company insiders own 0.63% of the company's stock.

BorgWarner Stock Performance

Shares of BWA stock traded up $0.15 during trading on Tuesday, reaching $43.70. 442,487 shares of the company's stock traded hands, compared to its average volume of 2,797,494. The company has a market capitalization of $9.46 billion, a P/E ratio of 46.49, a PEG ratio of 1.46 and a beta of 1.09. The company has a current ratio of 2.02, a quick ratio of 1.66 and a debt-to-equity ratio of 0.64. The firm's 50-day moving average is $40.39 and its 200 day moving average is $34.13. BorgWarner Inc. has a 1 year low of $24.40 and a 1 year high of $44.70.

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

BorgWarner Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, September 15th. Investors of record on Tuesday, September 2nd were issued a dividend of $0.17 per share. This is a boost from BorgWarner's previous quarterly dividend of $0.11. The ex-dividend date of this dividend was Tuesday, September 2nd. This represents a $0.68 dividend on an annualized basis and a yield of 1.6%. BorgWarner's payout ratio is currently 72.34%.

BorgWarner declared that its Board of Directors has approved a share 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 shares through open market purchases. Shares repurchase programs are often a sign that the company's board of directors believes its shares are undervalued.

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.